Monday, February 01, 2010

Business & Technology | Oracle's playbook for Sun Microsystems honed by series of acquisitions | Seattle Times Newspaper

New realities for Sun customers – apparently Oracle has ended Sun’s strategy of losing money on both hardware and software…

While executives say they're focused on building high-end computer systems that will improve the performance of customers' data centers, Oracle Chief Financial Officer Jeff Epstein minced no words as he described the financial strategy behind his company's $7.4 billion acquisition of Sun.

"Oracle is very good at saying no," Epstein told Wall Street analysts just hours after Wednesday's announcement that Oracle had completed its purchase of the financially struggling Santa Clara computer maker.

Oracle intends to shrink Sun's catalog — by trimming numerous variations of similar products and services — and halt Sun's practice of filling special orders for unprofitable systems with unusual features.

Some customers may not get what they want, Epstein acknowledged. "We don't want to sell products that we lose money on," he said.

Business & Technology | Oracle's playbook for Sun Microsystems honed by series of acquisitions | Seattle Times Newspaper

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