On April 20, Oracle Corp. announced it would acquire Sun Microsystems, whose chief executive officer is Jonathan Schwartz ’87. The deal, valued at $7.4 billion, promises to make Oracle a more potent competitor against I.B.M., Sun’s previous suitor, according to The New York Times.
“With Sun, Oracle will more directly compete against I.B.M., H.P. and other giants selling products and services used in corporate data centers by big corporations,””said the Times. “The move by Oracle is part of the trend of the largest technology companies to assemble more offerings — hardware, software and services — for corporate customers, often through acquisitions, as I.B.M., H.P., Cisco and Oracle have all done in recent years.”
In an e-mail to Sun employees, reported by the Wall Street Journal, Schwartz spoke about the acquisition:
“This is one of the toughest emails I’ve ever had to write. It’s also one of the most hopeful about Sun’s future in the industry. To me, this proposed acquisition totally redefines the industry, resetting the competitive landscape by creating a company with great reach, expertise and innovation. A combined Oracle/Sun will be capable of cultivating one of the world’s most vibrant and far reaching developer communities, accelerating the convergence of storage, networking and computing, and delivering one of the world’s most powerful and complete portfolios of business and technical software.”