Feeds

Larry to take integrated Sunacle direct to CIOs

Oracle reveals its surprisingly reasonable plans for Sun

Top three mobile application threats

All the talk of layoffs at Sun Microsystems in the wake of the $7.4bn acquisition of the company by Oracle was apparently a bunch of hogwash.

Prior to a five-hour extravaganza where Oracle and Sun executives will detail roadmaps and plans in the wake of the merger, Oracle chief executive officer, Larry Ellison, made the rounds to selected members of the press to give them a sneak peek at Oracle's plans.

Ellison told the New York Times (here) and the Wall Street Journal (there), that only about 2,000 employees would be eliminated from the Sun payrolls in the wake of the merger. This contrasts with the ridiculously high estimates that some people on Wall Street had been making for Oracle to extract its $1.5bn profit targets out of what will presumably become the Sun division, at least for the short term.

To be truthful, Sun did a lot of Larry's layoff work for him, slashing 6,000 jobs in November 2008 and another 3,000 in October 2009. Some tongues had been wagging that half of Sun's approximately 24,000 remaining employees after that last layoff would get whacked. Those 2,000 additional employees that Oracle will now cut will most likely be back office functions that Oracle central can handle.

Ellison also told the Times, Oracle will be hiring another 2,000 engineers and sales people to push Sun products. So the net effect of the Oracle deal might be essentially no change in headcount at the Sun division.

Why would Oracle do this and still be able to make its goal of pulling $1.5bn in profits out of Sun in the first twelve months it has control, and then another $2bn in the year after? Remember, Sun has been limping along, more or less at breakeven, for years and years, which is why it was weak enough to be acquired in the first place.

What Oracle seems intent on doing is ramping up the Sun direct sales, going after the top 4,000 accounts in the world with a vengeance. Even more importantly, it wants to do so with an integrated set of systems, from the microprocessor chip all the way up to industry-specific applications.

Oracle will also shut down businesses that Sun has been pursuing that do not make money, according to the reports. That could include backtracking on low-end x64-based servers, but not Sparc-based machinery, which will get a boost.

Hopefully, as El Reg has encouraged, in a sensible and quick manner that gets Sparc iron back in the hunt against x64, Power, and Itanium alternatives. A renewed and sped-up partnership with Sparc64 chip maker Fujitsu seems to be in order, but Fujitsu has its own issues with chips.

Ellison told the Times that he expected Sun president and chief executive officer, Jonathan Schwartz, to resign from the combined companies. He also said that he hoped that Sun co-founder, Scott McNealy, would stick around in some fashion.

McNealy's sign-off to Sun employees, which we reported on earlier here, certainly did not give the impression that McNealy had any plans to work for Ellison.

Team Reg will keep you posted as more information becomes available. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.