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VIRTUALISATION Oracle to layoff more than 10,000 Sun staff: analysts
VIRTUALISATION Oracle to layoff more than 10,000 Sun staff: analysts | Oracle to layoff more than 10,000 Sun staff: analysts |
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| by Stan Beer | |
| Tuesday, 21 April 2009 | |
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"In our estimation, Oracle will lay off between 10,000 to 15,000 Sun employees and gain annual savings of $1.5 billion in operating expense in year one and more than $2.0 billion in the second year," they say in a research note. The resulting organisation will be one of a new breed of vertically integrated systems vendors that will be well positioned in the market and a threat to the hardware vendors they say. TBR believes Oracle may spin off or sell off some parts of Sun’s hardware and software business following the acquisition. According to TBR, likely purchasers of Sun’s hardware business include Fujitsu, EMC, Dell and HP – any of which may benefit from adding Sun offerings to their portfolio. On the software side, TBR believes Oracle will retain the Java, Solaris and MySQL businesses: Java and Solaris provide core technologies that Oracle either uses or could leverage to grow its footprint among enterprises; meanwhile, control over MySQL allows Oracle access to smaller businesses, provides an open-source alternative to cost-conscious buyers, and keeps a database contender out of another vendor’s hands. CONTINUED Page 2 |
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