Sun server sales crashing as Oracle deal stumbles

The acquisition hit another major roadblock late last week

Continued delays in the completion of Oracle Corp.'s pending US$7.4 billion acquisition of Sun Microsystems Inc. have put the latter into a limbo that appears to be devastating its computer server business.

The acquisition hit another major roadblock late last week when the European Commission announced that it is launching an in-depth investigation into the proposed deal based on what it called "serious concerns" about how the merger could affect competition in the database market.

U.S. regulators approved the deal last month.

The EC disclosed its latest investigation just days after research firm IDC released a report showing that Sun's second-quarter server revenue plunged by 37% to $981 million, the worst percentage drop of the major server vendors.

Analysts noted that IBM, Hewlett-Packard Co. and other computer manufacturers have aggressively courted Sun customers, offering them migration incentives and other deals that seek to take advantage of the uncertainty surrounding the Oracle deal.

IBM and HP also saw sales decline in the second quarter, but their shortfalls weren't as precipitous as Sun's. IBM's sales dropped by 26% and HP's by about 30%, according to IDC.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags OraclesunserversOracle-Sun merger

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Patrick Thibodeau

Computerworld (US)
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?