Oracle Acquires Sun Microsystems: Strategic Impact at a Tactical Price

Oracle's acquisition of Sun (Nasdaq: JAVA) comes at a tactical price but carries with it major strategic benefits to Oracle as it stands to reap benefits of a more vertically integrated stack. The accretive nature of Oracle's bid for Sun is underscored by the efficiency of Oracle's business model. When Oracle completes this deal, it will be strategically positioned vis a vis both IBM and HP, and will be able to compete more effectively for centrally controlled IT budgets. This transaction puts significant distance between Oracle and SAP, as Oracle will no longer be just a software company.