Sun Will Become Part Of Oracle Because It Failed To Notice Subtle Change

June 13, 2009

Sun Microsystems has a storied past in the era of big-system computing. It was the “.” in dot com and the originator of the phrase the “network is the computer.”

Now it is to become part of Oracle and one reason is that it failed to react to subtle changes reshaping the industry, says former Executive Vice President of Global Sales Operations Masood Jabbar.

Masood Jabbar said he was deeply saddened by the Oracle deal

Masood Jabbar said he was deeply saddened by the Oracle deal

Oracle agreed to buy Sun in April after edging out rival suitor IBM, and on July 16 Sun shareholders will vote on whether to seal the deal.

“I’m deeply, deeply saddened by it because we built a great franchise,” Jabbar said on Saturday during an address at the OPENforum 2009 conference in Mountain View.

Jabbar said he remembers extraordinary times at Sun, such as renting out the Palace of Versailles in France to hold a costume party for his sales force. He boasts of flying Elton John to Hawaii to entertain his top performers.

People don’t know “how hard we played,” he said.

But while Sun worked hard, it didn’t excel when things change very slowly, he added. “That is the cancer in a company that people don’t detect, most people don’t see.”

These change took place both inside Sun and outside, where more powerful low-cost computers stole business from Sun’s high-end boxes.

Jabbar offered advice for tomorrow’s Suns:

First, be paranoid. Second, “when it ain’t broke, break it.” That way, you can fix it correctly, he said.

Third, “you must change before you have to change,” he said. And finally, pay attention to co-founder Bill Joy’s technology rule: innovation will occur and probably elsewhere.


[JavaOne] Sun Hands Keys Of Java To Oracle

June 2, 2009
Sun co-founder (right) hands-off the keys of his company to Oracle co-founder Larry Ellison

Sun co-founder (right) hands-off the keys of his company to Oracle co-founder Larry Ellison

It was quite an emotional moment when Sun’s co-founder passed on the keys of his company to Oracle co-founder Larry Ellison.

Now Java is all Oracle’s, which includes Java the language, Java the platform (virtual machines, APIs), the newly announced JavaStore (for desktop apps only), JavaFX (a graphical user interface for Java programs), Netbeans (a rising development platform) and Glassfish, an open source application server and direct competitor to RedHat’s JBoss.

At the show, Sun also announced it’s upcoming Sun Cloud which should be released incrementally throughout Summer.

I just can’t help to think that Ellison made quite a deal buying a $14 billion-revenue company for half that, at only $7.4 billion. Can’t beat that!


Want Publicity? Start Your Own Blog, Media Site

April 29, 2009

As the old French adage goes, “One is never so well served as by one-self.”

And for PR pros that could also mean becoming… a publisher!

“Don’t underestimate the potential of self-publising and developing your own powerful blog or media site,” said Dell’s Vice President of Large Enterprise Marketing and Online, Andy Lark. 

Speaking today at PRSA’s event on “PR Secret Strategies For Success” Lark argued that the vacuum created by the collapse of publishing – Fortune Small Business magazine was just taken off the stand -and in particular in the high-tech sector, left Oracle magazine and Dell’s Power Solutions magazine as the 2 most distributed tech magazine in the world, ahead of IDG’s InfoWorld.

“Increasingly the “private label” publications is starting to dominate the media landscape with deeper reach and richer content,” added Lark.

For Lark, there’s no reason why even a small startup can not become a large publisher, with a site that agregates content and finally end up with a bigger circulation very quickly than any of the tradional media sites.

I agree this can be true for companies launching publications focused on their core market. Like Seagate’s blogs on digital storage or RSA’s security blog.

But I find hard to believe that these “private label” blogs will provide a fair and balance view of competitors, flaws, etc…

And there will always be a room for high-quality reporting, in “traditional” media, blog or whatever you want to call it.


Oracle Guns For Java, Sun’s Hardware Comes Along For The Ride

April 20, 2009

Oracle has never been afraid to remake the technology industry.

Almost a half a decade ago, it kicked off a major consolidation in the enterprise software market with its hostile bid for PeopleSoft.

Oracles merger with Sun is seen as a defensive bid to control Java

Oracle's merger with Sun is seen as a defensive bid to control Java

Now it is shifting the dynamics among software and hardware firms, melding its ever expanding database, middleware and applications empire to include Sun Microsystems’ server hardware. The company said it would buy Sun for $7.4 billion, or $5.6 billion after backing out Sun’s cash.

That will lead to awkward relations with Hewlett-Packard, a long-term partner, and other firms that make a business supplying hardware for Oracle’s software. IBM is already an intense rival, so the ties between the companies may not fray further.

But to focus on the conglomeration of hardware and software misses the point. Oracle bought Sun primarily for Java. The prospect of IBM buying Sun and controlling Java was too much for Larry Ellison and company. Oracle’s entire software stack is built on Java.

“We view this deal as a defensive maneuver on
Oracle’s part to keep Sun, a long time ally, out of the hands of IBM, a long time enemy,” says Cowen analyst Peter Goldmacher. “We are positive that Oracle never wanted to get into the hardware business, but when faced with the likelihood of IBM owning Sun’s Java assets and the company’s installed customer base, Oracle was forced to buy Sun.”

But all this raises an interesting question. Despite gaining Sun’s Java – and its other software assets including the Solaris OS and its open-source MySQL database – can Oracle make due with its lower margins of a hardware business?

“By promising to make Sun hardware ‘profitable,’ Oracle seems to be suggesting that growth in software alone is not sufficient and that consolidation should be extended,” says Miko Matsumura, deputy CTO at Software AG. “Instead of taking a fundamental open source approach which is primarily driven by services revenue anyway, Oracle is moving to a systems approach. This is not a terribly optimistic acquisition in my opinion.”


Hesitant Financial Industry Will Spend On Risk Management Systems

March 26, 2009

Financial firms are hurting.

So it’s easy to understand why the Citigroups of the world won’t be buying lots of new software this year But there is one area of technology where sales could soar: liquidity management systems.

Since the global downturn upended financial markets last fall, technology purchasing by the financial industry has been depressed, says Don DeLoach, CEO of software maker Aleri. Projects have been delayed or canceled altogether.

The growth of liquidity risk management projects is accelerating, says Aleris Don DeLoach

The growth of liquidity risk management projects is accelerating, says Aleri's Don DeLoach

“A lot of the financial-services firms have pulled in the reins,” says DeLoach. “This is certainly not confined to the U.S.,” but is taking place around the world.

However new regulations are causing major banks to update systems that keep track of their liquidity – the money flows that are the best gauge of an institution’s assets, or financial strength.

Typically, liquidity calculations have been updated once a day. Now regulations expected from the U.S. and elsewhere will require more frequent revisions. Already the Financial Services Authority in Britain has begun imposing the new rules.

DeLoach argues that Aleri is well positioned to capitalize on the opportunity. It has been working on products for liquidity risk management since August 2007 and early this month bought Coral8 to broaden some key technologies.

But it won’t be alone. Giants such as Oracle, IBM and Sybase are already angling for a piece of the business – aware of its potential for attractive growth.

The number of liquidity risk management projects grew 300 percent last year and that growth is accelerating right now, says DeLoach.

While the downturn has brought financial distress to most companies domestically and abroad, at least a few software providers will prosper.


The Other German Software Company – Software AG – Hits $1 Billion In Sales

March 20, 2009

Germany’s other software company – Software AG – announced a milestone on Friday: 2008 revenue passed $1 billion for the first time.

Software AG is benefiting from its acquisition of webMethods

Software AG is benefiting from its acquisition of webMethods

The company sees more growth ahead. This year, sales are projected to grow 4 percent to 8 percent with margins improving.

The firm isn’t the only business software maker to dodge the worst of the economic firestorm sweeping the globe. This week Oracle also impressed Wall Street with its steady financial results.

Part of the explanation is the software business model. Customers pay regular, annual fees to maintain their software and receive updates. At Software AG, 60 percent of revenue and 70 percent of profits come from maintenance, upgrades and follow-on business.

But the company says as well that software continue to be a priority purchase for corporations determined to cut costs, find new efficiencies and position their businesses for growth.

The developer, which gets far fewer headlines than Germany’s SAP,  also is benefiting from its 2007 acquisition of webMethods. WebMethods has “become the company’s growth engine,” accounting for 44 percent of revenue in 2008, according to an e-mail.


Oracle Talks Up Database Machines, Says More Acquisitions Are Ahead

March 19, 2009

Oracle’s fastest growing business is its Fusion Middleware products, where the acquisition of BEA expanded its list of customers, says CEO Larry Ellison.

But the “most exciting product” in many years is the company’s Exadata Database Server, for which Hewlett-Packard supplies the hardware, he said.

Exadata orders largest ever for a new product, the company says

Exadata orders largest ever for a new product, the company says

The machine outperforms a similar data warehouse product from Teradata, Ellison told analysts as he vowed Oracle would continue to make acquisitions to fuel growth. Some customers are finding it’s 6 times faster.

The company went on to say the stream of orders for the Exadata server is the largest ever for a new product.

And with respect to Germany’s SAP, the maker of applications software for business, Oracle grew faster in every region around the world and is clearly taking market share, asserted Safra.

The company on Wednesday released solid third-quarter financial results and declared a dividend for the first time.


Salesforce Claims Win Over Oracle As Customers Surrender To Cloud Computing

February 25, 2009

Business customers are rethinking the large software “maintenance” payments they make to vendors such as Oracle and SAP, Salesforce.com CEO Marc Benioff says.

Salesforce winning in every industry, says Marc Benioff

Salesforce winning in every industry, says Marc Benioff

Benioff, whose company posted a 34 percent fourth quarter sales increase, said the downturn is causing many companies to watch cash like hawks.

“Now that credit is as tight as it has been in generations, customers are surrendering to the more predictable costs of cloud computing,” he said Wednesday on a conference call.

“We’re winning deals of all sizes in virtually every industry,” he said.

The company’s solid financial report, with profits that almost doubled and an upbeat first-quarter outlook, bucks the trend of recently quarterly reports with sales declines and falling profits.

Benioff said the sour economic environment is leading customers to the lower monthly payments of renting software as a service.

He pointed to a key contract win with EMC, where he claimed the company is replacing Oracle’s Siebel customer software.

“This was a great win against Oracle and replaces their Siebel infrastructure,” Benioff said.


John Doerr And Charles Phillips Named By Obama To Board

February 6, 2009

President Barack Obama named two prominent high-tech executives to an Economic Recovery Advisory Board on Friday, adding to Silicon Valley’s clout in Washington.

Oracles Charles Phillips named to presidential advisory board

Oracle's Charles Phillips named to presidential advisory board

Named by the president were John Doerr, a partner at the venture capital firm Kleiner Perkins Caufield & Byers, and Charles Phillips, a president at Oracle.

“I created this board to enlist voices to come from beyond the Washington echo chamber,” Obama said in brief remarks. “I also want to be sure that we’re tapping a broad and diverse range of opinion from across the country, because a historic crisis demands a historic response.”

The newly created board includes high-pedigree executives from manufacturing, finance and labor. It is to be headed by Paul Volcker, an economist and former chairman of the Federal Reserve.

The other members are:

*William H. Donaldson, former SEC chair;
*Roger W. Ferguson, Jr., President & CEO, TIAA-CREF
*Robert Wolf, Chairman & CEO, UBS Group Americas
*David F. Swensen, CIO, Yale University
*Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.
*Penny Pritzker, Chairman & Founder, Pritzker Realty Group
*Jeffrey R. Immelt, CEO, GE
*Jim Owens, Chairman and CEO, Caterpillar Inc.
*Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion
*Anna Burger, Chair, Change to Win
*Richard L. Trumka, Secretary-Treasurer, AFL-CIO
*Laura D’Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley
*Martin Feldstein, George F. Baker Professor of Economics, Harvard University


Sybase Offers More Proof Software Is Doing Better Than Hardware In Downturn

January 28, 2009

Sybase reported fourth-quarter results on Wednesday that added to the evidence that software is navigating the downturn better than hardware and computers.

The company said sales increased 3 percent to $305 million and new license revenue for its database software rose 38 percent. Overall license revenue was up 8 percent.

Database licenses grew 38% in the fourth quarter, John Chen said

Database licenses grew 38% in the fourth quarter, John Chen said

Net income came to $47 million.

Sybase joins companies such as IBM, VMware and Oracle (so far, at least) that have reported growth or relative stability in software sales.

Sybase CEO John Chen attributed the success to the company’s investments in its “unwired enterprise” strategy. The market is responding well to Sybase’s mobility and analytics technologies, he said in a statement.


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