Oracles acquisition of Sun Microsystems is going to create a $1.5-billion (Rs 7,474 crore) entity in India.
Oracle will compete more effectively with arch rival IBM by bundling its business software with Suns computer servers, and offering them at competitive rates to customers in the country.
This deal will help Oracle address newer segments of Indias $34 billion market (Forrester estimate) for IT products and services, and increase its share of the overall enterprise software services market.
Customers, such as Punjab National Bank (PNB), which already uses hundreds of computer servers from Sun Microsystems and runs several applications through Oracles database software, this transaction will surely add value.
RIS Sidhu, chief information officer (CIO) of PNB said, "Since we have both Oracle and Sun as important vendors, this acquisition will bring a lot of value."
According to Dataquest, Sun Microsystems India had revenues of Rs 1, 674 crore, while Oracle Indias revenues were estimated to be around Rs 5,800 crore last year.
CIO of a leading Indian retailer, requesting anonymity said, "Oracles Sun acquisition will lower cost of system integration and other services for customer like us, running multiple systems and application. We hope that bundled solutions with Sun servers could bring costs down by at least 10-15%."
In the meantime, some company insiders expressed concerns about Oracles commitment for open source Linux software, which is popular in countries, such as India.
A senior executive at Sun Microsystems India added, "A problem more unique to India and some of the other developing countries could arise out of the uptake in open source software in these markets. Its not clear how Oracle would decide on selling its proprietary suite of software versus Suns open source one."
In a statement, Linux said, "Oracle is as committed as ever to Linux and other open platforms and will continue to support and enhance our strong industry partnerships."
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