What Oracle Would Get With Sun Acquisition

The acquisition of Sun Microsystems (NSDQ:JAVA) by Oracle (NSDQ:ORCL), if it is closed as expected, would give Oracle a company whose business model has been rocky but would bring it some of the industry's top hardware and software technology and strengthen its open-source offerings.

Oracle on Monday said it plans to acquire Sun in a $7.4 billion deal announced shortly after an earlier bid by IBM (NYSE:IBM) to acquire Sun fell through.

Oracle and Sun have had complementary businesses for years, and a significant if not majority portion of Oracle's installed base has been on Sun hardware and Sun's Solaris operating system.

The proposed acquisition of Sun would force Oracle to decide how much of a hardware vendor it wants to be, as the software side of Sun is very compatible with Oracle's product offerings.

Oracle is one of the IT industry's largest software vendors, with core competencies in databases, middleware and other business applications, and an acquisition of Sun would bring a wide range of complementary technologies with limited overlapping of its existing products.

Sun would bring Oracle the MySQL database, based on open-source technology. Sun currently provides the MySQL database as a free download, with customers paying Sun and/or its solution providers for support.

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