sun microsystems

When Taiwan’s Quanta landed orders from Facebook and Google to help custom-build their data centres earlier this year, it was the first step into a new industry for the world’s biggest contract maker of notebooks.

Quanta chairman Barry Lam’s said on Monday, however, that his ambitions go further than just completing built-to-order projects for tech companies. Quanta will instead look to offer a full turnkey solution for servers, he said for the first time. It is a move that will put it into direct competition with industry leaders like HP, Dell, IBM and Sun Microsystems. Read more >>

Tech news from around the web:

  • James Gosling, the programmer who founded Java at Sun Microsystems, has joined Google, Cnet reports. The online search giant is currently suing Oracle, which bought Sun Microsystems last year, over how the Java technology is used in Android.

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David Gelles

It is perhaps with good reason that Larry Ellison does not speak in public that often. Whenever he does, the famously bombastic Oracle chief executive seems certain to trash his rivals, make bold predictions about Oracle’s future, and wander off topic.

Last night at a meeting of the Churchill Club, Mr Ellison said that Sun Microsystems was losing $100m a month as European regulators scrutinise Oracle’s proposed takeover of the struggling hardware maker.

On the economy, Mr Ellison said it would be at least another five years before the US begins to recover. He said it would not be a V shaped recovery with a sharp rebound, or a W shaped recovery with a double dip, or a U shaped recovery with a pause before an uptick, but an L shaped recovery — “down and not coming back up.” Read more >>

  • Sun Microsystems, which last week agreed to be purchased by Oracle for $7.4bn, reported sharp losses in the opening months of this year, highlighting the impact of the recession on the computer systems company. In a departure from protocol, Sun did not host the usual conference call with investors and analysts following results.
  • IBM responded to the collapse of its own takeover offer for Sun this month with an announcement that it would return more cash to its shareholders instead in the form of a higher dividend and increased stock buy-back plan.

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Richard Waters

Wouldn’t you love to be a fly on the wall next time Oracle gets round to negotiating Java licences with IBM and Nokia?

Sun’s aim of countering Microsoft by getting the programming language and development tools widely adopted was a knock-out success, but its business model (make the profits on hardware) failed utterly. Oracle has been pretty clear that it won’t make that mistake.

But will Java licensees be willing to pay up to justify Larry Ellison’s claim that this is “the single most important software asset we have ever acquired”? Read more >>

Richard Waters

There are two explanations making the rounds for Oracle’s unexpected entry into the hardware business. Neither on its own is wholly convincing, but each hints at what is probably really going on here.

The first is the explanation that Oracle was putting about on Monday. This holds that vertical integration of all aspects of hardware and software is the next step being demanded by the customers of enterprise technology companies, who want one throat to choke when something goes wrong. Read more >>

  • IBM took its offer to buy Sun Microsystems off the table when the onetime Silicon Valley powerhouse asked for more money, and said it wanted to talk with other potential buyers when IBM balked. People familiar with the negotiations said everything might still be worked out, since no other suitors are expected and the financial difference between the two sides isn’t vast.
  • The Associated Press is hoping to stanch what it claims is the rampant unauthorised republication of its content across the web. Websites – including Google News – will have to seek permission to use the work of the AP or its member newspapers, and may face legal action if they don’t comply.

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  • According to reports, IBM is set to acquire Sun Microsystems, a prominent rival in the server and software markets, for $7bn. The purchase is the largest in Big Blue’s history, and breaks a long dry spell in the M&A arena. The deal could also cement IBM’s hold on some core hardware and software technologies, bringing a sea change in the world of corporate and government datacentres.
  • Research in Motion reported better than expected fourth quarter earnings thanks to strong BlackBerry sales and a healthy jump in new subscribers, sending its share price soaring in late trading. RIM this week launched a BlackBerry application store to rival the popularity of Apple‘s App Store.

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