Monday, Oracle announced its acquisition of Sun Microsystems, Inc. by 7.4 billion U.S. dollars. Difficulties that Sun is currently facing and the failure of IBM to acquire Sun give an opportunity to Oracle for this acquisition.
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As an independent company, Sun has a history of 27 years in Silicon Valley.
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After the acquisition of Sun, Oracle will gain the ownership of Java programming language which is now used in more than one billion of the world’s devices. Oracle will also receive Solaris operating system, a basic platform for many products of Oracle.
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Over the past 4 years, more than 40 billion US dollars was spent on the acquisitions by Oracle, of which the acquisition of Sun is not the largest one, but the boldest one. By acquiring Sun, Oracle will enter the storage and computer hardware market, so as to provide one-stop technical services to over 300,000 enterprises, governments and schools.
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Oracle CEO Larry Ellison said in the conference call Monday, “Through the acquisition of Sun, Oracle can better coordinate the various parts of technology products and making them work together better.â€
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Sun CEO Jonathan Schwartz was of the view that the merger of these two companies could create a “system and software giant†to redefine the industry as a whole and to redraw the border of the industry. In addition, through the introduction of Sun technologies, Oracle can provide customers with more user-friendly computing solutions in lower prices.
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In this acquisition, Oracle will pay 9.5 U.S. dollars per share to Sun. Besides cash and debt that Sun currently holds, the value of this transaction is 5.6 billion U.S. dollars.
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IBM and Sun have been negotiating for the acquisition in March in which IBM raised the price of 9.40 U.S. dollars per share. However, the acquisition negotiation eventually broke down, because the two sides differed in terms of prices, and that IBM was not sure weather this transaction could get through the antitrust review.
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It is estimated by Oracle that by the first fiscal year after the acquisition of Sun, Oracle’s adjusted profits will be increased by 15 cents per share, which is equivalent to the adjusted total profits increased by 1.5 billion U.S. dollars. By the second fiscal year, the total profits are estimated to increase by more than 2 billion U.S. dollars.
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The new structure of the IT industry must bring on lots of transformations. Many IT professionals are wondering where these Sun certifications to go and what changes will take place in the certification exams. Pass4sure, with these two main vendors, will obverse closely. Its up to date testing bibles will still be the compass for most candidates.