Thursday, September 17, 2015

Oracle buying HP?

The San Jose Merc is having a field day with the HP stories this week

Yesterday's report, acc. to analyst Rob Enderle (an Oregon pundit often commenting re HP), is that Larry Ellison would love to buy HP, just to "take them out".  Mark Hurd might even be behind such a move, although he wasn't mentioned in the story.

On of my readers sent along the following yesterday: Always consider the source in any news article! Enderle has no in depth understanding (weak background) - easy to do hip shooting comments.

There are options for Oracle other than the two he proposes, and I think that these are more likely; e.g. cherry pick HP Enterprise for good people in this time of confusion and uncertainty at HP E.

Incidentally I spent Monday on the Stanford campus at a conference examining the explosive growth of traffic on the Internet and future technology requirements. HP Labs notably absent - no longer even taken seriously in such circles.


Today (9-17), the same reader sent a follow-up note: Further thoughts:

HP's mkt cap is $48B.

Oracle mkt cap is $165B, with $54B in cash and short term investments.

Oracle could easily buy all of HP today pre-split.

But why would they want to?

And yet more, from the same observer (9-18):

more thoughts:

Why would Oracle want even the Enterprise side?

Oracle already has a competent full-stack offering -- Processor, Storage, Operating
System, Database, languages (Java), Services and Consulting.

HP Enterprise doesn't add much to any of these areas.  If Oracle owned HPE, they'd need to kill SPARC
or Itanium, need to cut an overstaffed services group, etc, etc.  Perhaps they'd pick up some storage technology,
but this isn't worth the bother.  It isn't clear what "The Machine" adds, or how memristors are going to compete with
Intel/Micron's "Optane" memory.

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