Eye on Oracle

Oct 18 2010   8:56PM GMT

Rumors swirl around Oracle and EMC

Shayna Garlick Shayna Garlick Profile: Shayna Garlick

While in many ways we are still waiting to see how the Sun acquisition will change Oracle – for example, what it will do with technologies like Solaris and OpenSolaris – it seems that some of the original hype of the acquisition has died down. News from the acquisition was definitely not absent at last month’s Oracle OpenWorld, but much of the show focused on other things such as Fusion Applications, Oracle Exalogic and even the hiring of HP CEO Mark Hurd.

So, does this mean Oracle is ready for its next big acquisition?

That’s what some are saying, as speculation is growing that Oracle is looking to buy the data storage systems company EMC in a deal that would likely also come with the leading server virtualization software, VMware, of which EMC owns 80%. Stock prices of both EMC and Oracle have even been reflecting this recent rumor, though some analysts are saying that while it is a possibility, such a deal is not the most likely scenario.

Still, with Oracle’s recent focus on cloud computing and the failure of its own OracleVM’s ability to compete with VMware in the virtualization market, the idea isn’t too far-fetched.  Both the storage solutions and virtualization software that EMC would offer could both be great assets for Oracle’s Exadata and Exalogic machines. And, of course, Larry Ellison is not one to pass up a deal that would continue to increase Oracle’s power in a number of markets.

As we wait to see if Oracle will make yet another deal that could alter the entire IT landscape, what questions do you have? Do you think this deal would make sense?

After I posed this question in a SearchOracle.com newsletter on Monday, I received some mixed feedback from readers. One reader thought the deal would make sense because of the benefits that VMware could bring to both public and private clouds. He wrote:

“I saw a virtual environment working on Oracle with VMware here… I really would recommend this deal. But not knowing exactly what the strategic objectives of Oracle are I cannot know.”

Another reader also thought the deal would make sense, but for a different reason:

“This will take Oracle solutions to the next level (highest one in my opinion). For instance, in our company we suggested buying an Exadata machine and all benchmarking went well, except one thing that made the whole thing be refused, which is that Exadata storage is not EMC-based, so we simply took the option out and went for home-built RAC architecture.”

And one other reader just had this to say:

“Just another opportunity for Oracle to provide terrible support on a new acquisition.”

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