Microsoft CEO Ballmer baffled by Oracle-Sun deal

CRN.com | at | by Mike

When Oracle earlier this week revealed its intention to acquire Sun Microsystems for more than $7 billion, Microsoft CEO Steve Ballmer's initial reaction was one of extreme surprise. After mulling the deal over, Ballmer still can't figure out what motivated Oracle to plop down such a princely sum for Sun.

"I have no idea why a software company would buy a hardware company. We don't want to buy any hardware companies," Ballmer said Wednesday in an appearance at the American Chamber of Commerce in Cairo, Egypt.

With server sales sluggish, and an economy that shows no signs of improving anytime soon, Ballmer's confusion is understandable. But solution providers see Sun not as a beleaguered hardware vendor, but as an engine of innovation that will complement Oracle's well-honed software-development capabilities.