Abstract

The case discusses the acquisition of Sun Microsystems (Sun) by Oracle Corporation (Oracle). It examines the growth strategies of Sun and Oracle over the years, their product lines and their major competitors. The case then highlights the problems faced by Sun post the dotcom crash and examines its inability to monetize its products. The case also briefs about the negotiations between IBM and Sun for merging Sun with IBM. It analyzes the possible synergies between Sun and Oracle post-merger and the challenges that Oracle may face after the acquisition.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the synergies resulting from the merger between hardware and a software company.
• Appreciate the importance of successfully commercializing innovative products.
• Study the Oracle-Sun deal and determine whether the deal was fairly valued or not.
• Discuss the challenges facing Oracle after the acquisition of Sun.

Keywords

Sun Microsystems, Oracle Corporation, Acquisition, Oracle's Acquisitions, Middleware, Enterprise Solutions, Enterprise Computing, Database Management Systems, Database Solutions, Merger Synergies, Java Programming Language, MySQL, RDBMS, Open Source, Dotcom Burst, IBM, Solaris, Virtualization, Cloud computing, Sub-prime crisis, Cross-selling, IT industry in the US