Sun microsystems this company started building

This preview shows page 2 - 3 out of 4 pages.

Sun Microsystems This company started building desktop computers and workstations. Like Oracle, its success was largely driven by its rapid computerization of company records. Additionally, its creation of its chipset based on scalable performance architecture (SPARC) led to further success. Later, Sun Microsystems announced that it would acquire MySQL AB. However, the 2008 recession made the company take a turn for the worse. Oracle Eyes Sun Oracle had been watching Sun for some time, hoping to capitalize on its misfortunes during the financial crisis. However, there was competition from IBM. This merger would combine Oracle’s dominance in the software space with Sun’s dominance in hardware and networking. Furthermore, this merger did not anticipate much cannibalization. Oracle knew that it could cut costs after the acquisition and get extra value from making Sun’s operations more efficient. Oracle had some expectations in this merger as well. It expected Sun to initially lose some customers from the merger due to uncertainty. Additionally, Oracle had never done business with the lower end customers. Therefore, Oracle’s marketing team already began working on ways to reassure Sun’s customers through the change. Additionally, Sun’s software was currently open source. However, this software is widely recognized, and a private survey revealed that people would pay for this software. With this in mind, Oracle would likely increase revenue from software licensing. Though, there was a higher potential for profits from the combined information at Oracle and Sun that could lead to very successful products.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture