Recs

11

HP Sets Its Sights on a Setting Sun

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Sun Microsystems (Nasdaq: JAVA  ) is going gentle into that good night. Shareholders approved the sale to Oracle (Nasdaq: ORCL  ) with an unimpressive 62% approval margin. The deal won't close until Sun and Oracle clear the last regulatory hurdle, but it looks like a done deal. Given the lack of overlap between the two partners' product portfolios, I don't see any antitrust issues getting in the way.

The low shareholder approval indicates that many keenly interested observers don't think this is the best way to use Sun's assets and personnel. What will happen to the Java language? Will Oracle sell server systems, spin out the hardware arm of Sun, or kill it altogether? Is it safe to assume that the Solaris operating system will be around for the long haul?

Hewlett-Packard (Nasdaq: HPQ  ) played on this uncertainty on the eve of the shareholder vote in a press release cheerfully titled "We've got your back." In it, the jack-of-all-technology pointed out that HP can and will support Solaris running on HP servers, and would love to help you move over to Linux, to Microsoft (Nasdaq: MSFT  ) Windows, or to HP's own HP-UX flavor of Unix.

More than 100 customers have already made the switch to HP support over the past six months; notable recent defections from Sun include respectable names like Staffordshire University and a large video-on-demand provider to British Telecom (NYSE: BT  ) . But this press release was clearly more of a fishing expedition than a chest-thumping exercise in braggadocio -- HP talks about cost-savings benefits and the ease of mind you get from moving to HP support, with little emphasis on battles already won.

Larry Ellison's gang has a sterling reputation for making the most of its buyouts -- but not so much for preserving the bought-out technologies and cultures. Therefore, it's not surprising to see rivals pecking at Oracle while it's digesting recent acquisitions. For example, VMware (NYSE: VMW  ) made a very similar play a couple of weeks ago in response to Oracle buying virtualization expert Virtual Iron.

While these thinly veiled attacks probably do shake loose a few fence-sitters here and there, and definitely are worth the price of a press release, they won't hurt Oracle at all. If there is a mass exodus of Sun customers coming, it'd be because Oracle is sucking the life force out of Java and Solaris. Will that happen? I don't think Oracle can afford such recklessness, but your mileage may vary. Use the comments box below to let your fellow Fools know what you think.

Further Foolishness:

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

VMware is a Motley Fool Rule Breakers pick. Microsoft is a Motley Fool Inside Value selection. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings or a bio if you like. The Motley Fool is investors writing for investors.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 21, 2009, at 10:47 AM, vincestev wrote:

    I have work with Sun Microsystems for many years in their educational department in London/Camberley and they are one of the best companies I have ever worked with. They really work hard at delivering excellent courses through great venues, great software/hardware, highly skilled instructors and first class customer service. The prospect that they might disappear from the world of IT is horrendous. Rgds Vince

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 945077, ~/Articles/ArticleHandler.aspx, 2/13/2012 3:55:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 12,869.76 68.53 0.54%
S&P 500 1,352.14 9.50 0.71%
NASD 2,931.22 27.34 0.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

2/13/2012 3:14 PM
ORCL $28.47 Down -0.03 -0.09%
Oracle Corp. CAPS Rating: ****
JAVA.DL $9.49 Down +0.00 +0.00%
Sun Microsystems,… CAPS Rating: **
VMW $96.33 Up +1.85 +1.96%
VMware CAPS Rating: ***
MSFT $30.63 Up +0.13 +0.43%
Microsoft Corp CAPS Rating: ***
BT $33.99 Up +0.32 +0.96%
BT Group plc (ADR) CAPS Rating: ***

Advertisement