According to the analysts, the $9.50 per share deal, which has been approved by Sun's board of directors and is expected to be closed this summer, not only ends Sun's 27-year history as Silicon Valley's brash independent but also it gives Oracle ownership of the Java programming language.
And, if Oracle CEO Larry Ellison gets his way, Java will emerge not only as a strong revenue source but also a key component of plans to keep customers loyal for years to come.
Java, Ellison said during a conference call with analysts on April 20, is "the single most important software asset we have ever acquired." Not surprising, as owning Java gives Oracle a counterweight to Microsoft as it tries to convince more developers to incorporate its database, middleware, and other software into their products.
Analysts agree because the Java programming language, widely used to write much of the world's business software, is a key ingredient in Oracle's recipe for ensuring the many products it has already acquired work smoothly together. Java also runs on 800 million PCs and 2.1 billion mobile phones worldwide and PC makers and cell-phone vendors, including Nokia, pay royalties to license the software.
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