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Exhibit AnalysisExhibits 1, 2 and 3 show the growth of Computer Hardware and Software and Services segment along with some other relevant data. Industry-wise growth and sales in dollar terms for Software and Services were well above the other segments but this growth was expected to decline slightly in the coming years. Exhibit 5, shows that Sun’s relative growth sales are less than that of its competitors in the Hardware but Oracle is doing well in that respect, with positive sales growth rate. Exhibit 6 explains Oracle’s reputation as a major player in the tech industry, with over $30 billion spent on acquisitions in the previous years, which have harmonized its current products and services and also allowed it to expand. Some of the major acquisitions undertaken by Oracle in the previous years include the acquisition of PeopleSoft and Bea Systems Inc. An analysis of Exhibits 7 and 8 shows that the value of Sun Microsystems, as portrayed by its stock performance, is in negative numbers, which makes it attractive for a take-over by other giants in the tech industry.RecommendationAccording to our DCF Analysis the share price of Sun Microsystems comes out to be around $7.03 per share which means that in the current acquisition scenario Oracle is paying more for the shares of Sun Microsystems when it is buying it for $9.5. In the technology industry the rate of obsolescence is quite high and the synergies that would be created by Oracle buying Sun Microsystems would enormously benefit Oracle as mentioned in the case that it would increase operating profits by $900 million and also there was a great potential for revenues due to the intersection of Sun and Oracle technologies.