Oracle to Sell Sun's Hardware Business to HP?

Filed in archive Business on August 30, 2009

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Fortune's Jon Fortt reports that Oracle may be planning to sell Sun Microsystems' hardware business to HP.

"It's no secret that Larry Ellison wanted Sun Microsystems for its software, not its servers," Fortt writes.

"HP, on the other hand, wants Sun's hardware to boost its services business," notes The Inquirer's Nick Farrell. "HP bought outsourcing player EDS. EDS was Sun's best customer. By owning Sun technology, HP will improve its profit margins on many EDS deals."

"Such a deal would also give HP a high end line of hardware that could more easily compete with the big iron offerings of major rival IBM," writes BNET's Erik Sherman. "However, finding themselves handed over to HP would certainly not make Sun's VARs, dealers, and partners happy, as they might well find themselves often pushed aside for the existing product lines."

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