Feeds

Could Oracle buy HP?

Should it?

Gartner critical capabilities for enterprise endpoint backup

One way for Oracle to solve HP's CEO problems is for it to buy HP and re-install Mark Hurd as CEO.

This isn't quite as off the wall as it sounds. The idea has been mentioned by Silicon Valley Watcher Tom Foremski. He suggests that an Oracle-HP combo would be strong enough to compete against "all of IBM."

Umm, apart from the joy it would bring to the hearts and output of business and technology journalists everywhere, and the buckets needed to hold the moisture dripping off salivating investment bankers, is it a good and feasible idea?

HP is currently capitalised at $90.6bn with Oracle larger at $121.33bn. That means Oracle would have to tender shares rather than cash. Any Oracle bid would send HP's shares shooting up in value and a cost of $100bn plus would be hard to finance.

Set the financing aside for the moment. Foremski thinks there would be terrific consolidation opportunities to take cost out. A combined Oracle/Sun/HP behemoth could share the same back office functions. HPs CIO, Randy Mott, the man who slimmed down its data centre estate, could be let loose on the entire operation's IT infrastructure and play cost-cutting and consolidation games to his heart's content.

That side of Foremski's suggestion makes sense, but what about cleaning up the products, where there would be tremendous server overlap, with Itanium, SPARC, and Intel processor-based systems. The Sun and HP Intel systems could be consolidated and, maybe, the Itanium ones put out of their, apparent, misery, unless there was sufficient business there to keep the things, or Oracle could say it doesn't need both SPARC and Itanium, and move the two to a single processor architecture, with one getting tossed away in the trash.

HP's blade server architecture products have a great reputation and Oracle could go back to making Exadata machines with HP technology if it wished.

On the networking side it's all gain and very little pain for Oracle with the HP Networking stuff being a terrific general addition to what Oracle and Sun have already.

On the storage side at first glance HP would solve major problems for Oracle, with Sun's mid-range storage generally thought of as uninspiring. Comically, Oracle could junk a Hitachi USP-V-based relationship all over again, and develop the 3PAR technology to cover more of the enterprise storage array space. The MSA (P2000), LeftHand (P4000) and EVA (P6000 to be) would provide much more storage market coverage than Sun gives Oracle too.

On the services side the HP-acquired EDS services operation ought to be a terrific addition to Oracle's existing services operation; again, with much consolidation and cost-savings opportunities.

From the point of view of staffing Oracle could combine its own Sun's and HP's sales force, and make significant headcount savings.

But the awesome unlikeliness of Oracle buying HP and re-installing Hurd as its head is just too much to contemplate … isn't it? ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.