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Reuters columnist Eric Auchard is predicting Oracle is now ready to go hog wild in the hardware space after its $7.4 billion deal for Sun Microsystems.

He's no doubt bought into Larry Ellison's insistence that Oracle has no intention of unloading Sun's hardware business. Ellison did make a nice case for why it makes perfect sense to be in hardware and software. Heck, who doesn't want to be more like Apple, especially in the eyes of investors?

But Ellison's unequivocal denial that the deal wasn't just a grab for Sun's software was weakened in a regulatory filing by Sun earlier this week, which disclosed Oracle initially made an offer solely for Sun's software business, while also making an equity investment in what remained of Sun and forging some strategic alliances.

It would seem to be a drastic change of heart for Ellison to now want to build a hardware empire just because he had to take on all of Sunto get its software.

Comments (1)

	1. 05-16-2009 00:01
	Using Apple as an example of how to combine hardware and software is an interesting case, but you have to wonder where to even begin with Oracle. It certainly has nothing in the wings to compare to an iPhone, or a Mac Air book, or even iTunes. Sorry Larry, your going to have to do more than talk your way into why this deal makes sense. Registered

Mel Duvall

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