Updates to this story
The Sun Oracle union is likely to end up targeting only the elite (large enterprises), leaving enough space for IBM – its major competitor - to poach Sun SMBs (small and medium business) customers. Sources close to IBM India told TechEye that an aggressive marketing campaign has been launched to educate Sun SMB customers about the negative impact of the Sun Oracle merger on their businesses.
IBM India has started reaching out to Sun customers and leaving no stone unturned to take full advantage of Oracle’s premature and suicidal announcement. Big Blue has now started a campaign called, ‘Don’t let the Sun burn your IT budget’ which will be soon on display at the desks of Sun’s India SMB Customers. IBM has come out with detailed calculations on how IBM can prevent customers from losing millions if they move out of Sun Oracle “unstable” roadmap.
IBM sources said, “IBM didn’t want to go direct on Sun but it’s just the name that has been used by the creative agency. It’s a common industry practice.”
Oracle co-CEO Charles Philips has announced that Sun Oracle would go totally direct to large customers only which account for about 1,700 global clients. The number might not be the right tool to scrutinise Philips’s supercilious announcement because local markets, like India’s SMB segment, will now take a stab on business which Oracle could have worked on.
There is no doubt that Oracle is itself on a sticky wicket after buying Sun Microsystems as the former has never batted on the tricky hardware grass where competitors like IBM bowl constant bouncers at its rivals. Sun had a huge SMB base for this product and a steady revenue stream of about three percent which Oracle is going to lose. This announcement doesn’t surprise IBM as Oracle is unfamiliar with the business dynamics of the hardware business, logistics and channels involved and the operating margins.
Oracle has a legacy of laying off workers of the firm they acquire. Well, Sun Microsystems is no exception there. Oracle has already laid off Jonathan Schwartz, former CEO of Sun Microsystems
Oh! Cut Oracle some slack!!Oracle will be paying him a hefty one-year’s salary of around $11 million as the SEC suggested. How about coming to IBM, Mr. Schwartz?
Well, that’s the song now from IBM, “Don’t let the Sun burn your IT budget”.
I remember Elton John singing: “Don't let the Sun Go down On Me….”…. Oracle, please learn the lyrics if not the tune.