Tuesday, October 4, 2011

Investopedia: Why Can't Oracle Quit Hewlett-Packard?

"I wish I knew how to quit you." - Brokeback Mountain

Like a creepy stalker, software titan Oracle (Nasdaq:ORCL) just cannot seem to let go of Hewlett-Packard (NYSE:HPQ), even though Oracle has come to far exceed it in enterprise value. It's admittedly an American tradition to celebrate a success - we invented the spike, the Icky Shuffle, and the Carl Edwards victory backflip, after all - but at this point Oracle is just rubbing it in. It's worth wondering, then, just why Oracle is apparently so interested in a company that is no real threat to it anymore.

Sunstroke
 
While software-oriented Oracle and hardware-oriented HP had gotten along well enough for quite a few years and were partners in certain businesses, that all seemed to start changing around the time Oracle bought Sun Microsystems. At that point, Oracle not only became a competitor in high-end servers, but acquired one of the technology options that was giving HP's Itanium line fits. Hewlett-Packard had their chance here but they blew it - they certainly could have stepped in and bought Sun, kept the hardware it wanted, and sold, spun-off, or kept the software side of Sun (like Java).


Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Why-Cant-Oracle-Quit-Hewlett-Packard-ORCL-HPQ-IBM-MSFT-CSCO-DELL-SAP1004.aspx

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