Welcome!

Microservices Expo Authors: Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz, Carmen Gonzalez

Related Topics: Recurring Revenue, Java IoT, IBM Cloud

Recurring Revenue: Article

IBM Stole the Thunder

IBM stole the thunder and the impending acquisition of Sun became an imminent and expected event

The purchase of Sun by Oracle for $7.4 billion has far less industry buzz and excitement than the rumored acquisition of Sun by IBM. 

IBM stole the thunder and the impending acquisition of Sun became an imminent and expected event.  While hardware overlap existed in the IBM deal, IBM would have provided a much needed home for Sun's software assets.  Software giant Oracle lacks a hardware portfolio, so the key Oracle / Sun overlaps are far fewer except for the $1 billion acquisition of MySQL by Sun in 2008.  Given Oracle's tendency to be proprietary in its markets, ownership of MySQL by Oracle would be perceived as a great risk in the open source community.

Aside from the unclear direction that MySQL would take under Oracle stewardship, an Oracle / Sun acquisition falls flat for a number of reasons.  The main reason is that Oracle with the partnership of Sun attempted this probable incarnation in 1996 with the introduction of the "Network Computer" (NC).

The notorious and failed NC failed to deliver on promises of complete independence.  After the failed attempt, Oracle went on to acquire a host of independent software companies including PeopleSoft ($10.3 billion), Siebel ($5.8 billion), and BEA ($8.5 billion) without catapulting their shareholder value or creating synergistic value to its customers and the market

Clash of the Titans
The culture of Oracle is broadly and widely known in the industry.  The Sun culture is a close, if not exact fit with the Oracle culture.  Expect a heated clash of hardware mentality vs. software mentality.

Oracle is not a hardware company.  Despite its efforts to be visionary and offer the Network Computer as early as 1996 in a partnership with Sun, Oracle is a software company, more precisely, Oracle is a database company. 

In the IBM / Sun scenario, IBM would know how to protect the Sun hardware assets, integrate Sun's hardware researchers and engineers, and adjust its product offerings to take advantage of the limited but positive market share Sun has in the server market.

Sun is not today, nor has it ever been a software company.  Sun's DNA is hardware-centric and the company does not understand how to develop, productize, and market compelling software.

IBM understands how to productize, develop, and market software.  Granted, IBM's whole rationale behind software is to sell more professional services.  However, IBM has made a commitment to its customers to be more focused on software in the near future.  IBM understands how to take an academic idea and create a product.  This is a skill that Sun has failed on in many instances.  IBM's culture of supreme customer service and eternal customer retention is unique in the industry. 

Oracle, as a steward of Sun's software assets, is far less adept at creating a mass market need for its software.  Oracle tends to focus its software efforts and products on its own platform preservation.

Under Oracle's ownership, the academic assets on Sun's product list, as well as those that may still be in the lab have far less of a chance to succeed because of Oracle's proprietary approach to protecting its platform.  Oracle is not a company that creates software products to enrich the market.  Oracle creates software products to enrich Oracle's proprietary platform and to protect its flagship database revenue.

With IBM, the market would likely have experienced an opportunity to benefit from Sun's software assets.  With an Oracle acquisition, Oracle itself will be the primary beneficiary.

Sun showed us the results of a hardware company's attempt to manage software.  Had Sun fully leveraged and productized its software assets like a true software company, it may not be an acquisition target today.

Software based Oracle runs the risk of significant cost overruns in the hardware business if it is managed like a software company.

More Stories By Theresa Lanowitz

Theresa Lanowitz, Founder of voke, inc. is recognized worldwide as a strategic thinker and market influencer in application lifecycle, virtualization and convergence markets. With over 20 years of experience, Theresa has been associated with some of the most breakthrough technology and products of their time. From 1999 through 2006, Theresa was a research analyst with Gartner. During her tenure with Gartner, Theresa pioneered the application quality ecosystem, championed the application security space, and consistently identified new and emerging companies to watch. As the lead industry analyst for billion dollar plus enterprise software companies such as Mercury, Compuware, and a host of others, Theresa developed marketing and launch strategies, corporate and product messaging, and identified partnering and acquisition opportunities.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@MicroservicesExpo Stories
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
The IT industry is undergoing a significant evolution to keep up with cloud application demand. We see this happening as a mindset shift, from traditional IT teams to more well-rounded, cloud-focused job roles. The IT industry has become so cloud-minded that Gartner predicts that by 2020, this cloud shift will impact more than $1 trillion of global IT spending. This shift, however, has left some IT professionals feeling a little anxious about what lies ahead. The good news is that cloud computin...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
An overall theme of Cloud computing and the specific practices within it is fundamentally one of automation. The core value of technology is to continually automate low level procedures to free up people to work on more value add activities, ultimately leading to the utopian goal of full Autonomic Computing. For example a great way to define your plan for DevOps tool chain adoption is through this lens. In this TechTarget article they outline a simple maturity model for planning this.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The rise of containers and microservices has skyrocketed the rate at which new applications are moved into production environments today. While developers have been deploying containers to speed up the development processes for some time, there still remain challenges with running microservices efficiently. Most existing IT monitoring tools don’t actually maintain visibility into the containers that make up microservices. As those container applications move into production, some IT operations t...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Software development is a moving target. You have to keep your eye on trends in the tech space that haven’t even happened yet just to stay current. Consider what’s happened with augmented reality (AR) in this year alone. If you said you were working on an AR app in 2015, you might have gotten a lot of blank stares or jokes about Google Glass. Then Pokémon GO happened. Like AR, the trends listed below have been building steam for some time, but they’ll be taking off in surprising new directions b...