This would give Oracle stake in the desktop market dramatically. Oracle wants to be the IBM and this would beat IBM to its game and not to mention that VMware and other players will be stunned as Oracle huge and angry sales machine will go after the customers and the desktop market like never before.
Oracle has already declared war on many fronts and by doing a Citrix acquisition it will definitely make a massive statement to the virtualization market leaving Oracle, Microsoft and VMware as the main contenders and also Red Hat and Novell slightly into the virtualization market.
Anyways, with Sun acquisition Oracle and Sun are really going after the market rather fast and aggressively. Sun is also reportedly giving huge discounts and even giving away hardware away for dirt cheap prices to kill the market and also disturb the competition dramatically. With an acquisition like that of Citrix, it is likely to make and revamp all the complex licensing schemes a lot more simplified and sell big desktop solutions to the market and thus creating a dent in VMware’s dreams and other desktop vendors.
Problem in desktop landscape is that there are way too many vendors and this move will also give a more clearer direction to the customers and also lead to some tech consolidation in the desktop vendor market.
Here is the story on Oracle:
On December 24, Citrix had a market capitalization of $7.7bn, which would make the company much more expensive to acquire than Sun. And considering that even as messed up as Sun currently it is, the Sun biz can generate at least $10bn and maybe even $12bn in sales along with perhaps $1bn in profits – and if Oracle slashes the heck out of the payroll, maybe even a little more than that. Citrix generated $1.6bn in sales in 2008 and brought $178.3m to the bottom line, which is not too shabby.
But it is hard to imagine anyone getting ahold of Citrix for less than $9bn to $10bn. Citrix will have to have a very bad 2010 and 2011 before Oracle could pay only $3bn for the company – which is arguably all it is worth based on revenues and profits. (I can see paying two times annual revenues for a reasonably profitable company, as Citrix is.) But you can’t argue with Wall Street, which is why Sun, at the height of the dot-com boom, had a market cap over $200bn. Funny, isn’t it? Not if you are a Sun ex-employee.
On the Rambus front, it is hard to see what HP would want with the company. HP used to be in the disk and chip businesses, but ditched them more than a decade ago. Maybe HP uses so much memory that it wants to be its own supplier, but if it does that, it will have exactly the same problem Big Blue had with its disk drives: no one wants to buy components from a systems competitor.