Thin Client rides again

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Larry Ellison rode the “thin client” architecture back in the mid 1990s. Called the diskless desktop among various other names it amounted to a “smart terminal”. It was a tad premature.

Given another two decades the arrival of the Cloud as a “connected” computational facility for not so capable smartphones has belatedly arrived. And with that arrival Oracle is now in the mode of beefing up their “Cloud” capabilities with the announcement of its purchase of NetSuite Inc. for $9.3 billion. Oracle has been lagging the competition in cloud-based services, and is essentially buying market share according to several analysts based in San Francisco.

Oracle is a company caught between extending the viability of its installed hardware based system-software hegemony and the emerging Open Systems that most Cloud vendors are engaging. Their investment in the purchase of Sun Microsystems has not been primary to the company’s earnings potential. There was a time when Intel was non-persona grata at Oracle – that began to change two years ago.

The deal has been rumored for months, because the relationship between Oracle and NetSuite goes back decades. Oracle co-founder Larry Ellison has been a NetSuite investor since he co-founded the company with Evan Goldberg in 1998. Ellison and his family own about 45.4 percent of NetSuite’s common stock, according to a recent company filing. Zach Nelson, NetSuite’s CEO, ran Oracle’s marketing operations in the 1990s.

As Ellison and his family are part owners of Net Suite, a group of independent Oracle directors (excluding Ellison) helped evaluate and negotiate the deal with NetSuite. For NetSuite, approving the deal will mean getting clearance that sidesteps the large stockholder. The company said a majority of shares not owned by Ellison and his family; or by directors and executive officers; must vote in favor of the deal for it to be acquired.

If the deal is not approved there will be more than just a few amazed people to say the very least.

Salesforce Next?

Salesforce’s name has a marker on Oracle’s takeover radar. According to several sources this has reached the level of a personal vendetta with Larry Ellison – and Larry does like to win. So please standby…,