Oracle sets out Java's future as Sun deal closes

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Oracle sets out Java's future as Sun deal closes

By CAROLINE GABRIEL

Published: 28 January, 2010

READ MORE: M&A | Sun Microsystems | Java | OS | Java

Yesterday saw Oracle setting out the future of Sun, having finally completed the acquisition of the server and Java maker after nine months of regulatory processes. Its plans focus on applying an integrated hardware/software model, comparable to that in mobile devices, to the enterprise, which could strengthen its hand as a supplier to carriers. The other main point of interest to the mobile market is the policy for Java, which although open source is still heavily influenced by its inventor Sun.

Thomas Kurian, senior VP of Oracle's server technologies development, outlining the way forward for the merged company, dwelt at length on Java, which he called "one of the crown jewels coming to Sun."

Oracle is talking about integrating hardware and software to produce 'Oracle-in-a-box', reducing cost and complexity for enterprises and increasing its own control. In a couple of years' time, this could see Oracle having a very different proposition for carriers as it looks to expand in that market, offering tightly integrated and optimized combinations of servers with databases and web service delivery platforms. These could be targeted, in particular, at those operators seeking to support a wider range of application services, for enterprises and consumers, and to morph into being cloud providers.

As for Java, it is not only the basis of important Oracle products, notably its Fusion Middleware range, but strengthens its hands in terms of overall influence over industry software directions, and gives it a route into broader markets, including mobile enterprise. It could even build on Sun's work towards a 'Java OS', which could remove the need for an abstraction layer between the OS and Java-based apps, improving performance and developer efficiency. This is already an important approach in the mobile world and could expand to span the enterprise too.

By acquiring Sun, Oracle takes leadership of the Java community process, now open sourced, and gains more direct access to the huge Java developer base. Java runs on 800m PCs and 2.1bn phones, yet generated only $220m of Sun's $23.9bn revenue in 2008. Oracle will be looking to boost that quickly to $1bn. For a start, sources say Nokia's Java contracts with Sun are up for renewal soon - still valuable, despite the core Java technologies now being in open source. Ellison told the briefing: "There's a lot of money to be made in the Java middleware space. Our next generation Fusion applications are based entirely on Java. What you charge and what you give away isn't as important. We already know how to make money from Java."