All Things Digital

Skip to main content.

Digital Daily

Sun CEO: Go Oracle, Beat IBM [Internal Memo]

schwartzOracle (ORCL) said this morning that it has received unconditional regulatory approval from the European Commission for its acquisition of Sun (JAVA). Below, the all-hands memo Sun CEO Jon Schwartz sent to employees following the announcement. Pay particular attention to the first letter of the first 7 paragraphs …

Believe it or not, it’s been more than nine months since Oracle first announced their intent to acquire Sun in April, 2009. And the ‘interim’ period has been tough on everyone–on our employees, and our partners and customers. Thankfully, that interim period is coming to an end, with regulatory approval from the European Union issued today, and only a few hurdles remaining–before Oracle formally expands beyond software to become the world’s most important systems company.

Even though we’re not quite across the finish line, I wanted to leave you with a few final thoughts.

All in all, it’s been an honor and privilege to work together. In my more than twenty years in the industry, the last thirteen at Sun, I’ve had a chance to work with and around an enormous diversity of companies, from every sector you can imagine. I can say with conviction that Sun’s people have always stood apart as the brightest, most passionate, and most inspiring. I’ve never had a bad day in my thirteen years for one very basic reason–I’ve always been surrounded by the best and brightest individuals I’ve ever come across. That’s been an honor and privilege, for which I’m enormously thankful.

Technology from Sun, alongside our employees and partners, have changed the world. We’ve opened markets, elections and economies. We’ve helped build the world’s most important and valuable businesses. We’ve played a key role in discovering new drugs, in bringing education and healthcare to those in need, and supplying the world with an incredible spectrum of entertainment, from smartphones to social networking. I doubt any company has had such a significant influence over the way we see or experience the world. I once told Scott McNealy he was the Henry Ford of the technology industry, making remarkable innovations accessible to anyone, and creating an immense number of jobs around the globe for those that made use of them. I can’t begin to tell you how proud I am of my association with that cause and the people behind it, and the value we created for ourselves and those that exploited our innovations.

I also know we’ve had more than our share of very tough challenges. Amidst the toughest market and customer situations imaginable, I’m proud we’ve always acted with integrity, with a sense for what’s right, and not simply what’s expedient. Over the years, I’ve heard time and again, from those inside and outside the company, “I like and I trust Sun.” 

Building that good will is something to which you’ve all contributed. And you have every right to be very proud of it.

Make no mistake, it’s been an enormous asset.

So, to the sales and SE teams across the world who continually give their all to bring the numbers home–thank you for the trust you’ve built with customers, and the results you’ve delivered. I hope you’re prepared to have the wind at your back, you deserve it.

To the service professionals who every day build, maintain and run the world’s most important data centers–thank you for your excellence and discipline, 7×24.

To the professionals who run the functions and processes that are the company’s spinal column–thank you, we’d be paralyzed without you.

And lastly – to the engineers and marketers who’ve fostered a perpetual belief that innovation creates its own opportunity – thank you. You’re right. Innovation does create its own opportunity. Like Oracle, we’re an engineering company in our heart and soul, our potential together is limitless.

Now many of you know that I came to Sun when a company I helped to found was acquired in 1996. I’ve also led, and been a part of many, many acquisitions at Sun, both large and small. From those experiences, I’ve learned one very clear lesson–the single most important driver of a successful acquisition are the people involved–and how committed they are to the new owner’s mission.

And the most effective mechanism I’ve seen for driving that commitment begins with a simple, but emotionally difficult step. 

Upon change in control, every employee needs to emotionally resign from Sun. Go home, light a candle, and let go of the expectations and assumptions that defined Sun as a workplace. Honor and remember them, but let them go.

For those that ultimately won’t become a part of Oracle, this will be the first step in a new adventure. Sun has a tremendous reputation across the planet, well beyond Silicon Valley. It’s a great brand to have on your resume. We’re known as self-starters, capable of ethically managing through complexity and change, for delivering when called upon, and for inventing and building the future. With the world economy stabilizing, I’m very confident you’ll land on your feet. You’re a talented, tenacious group, and there’s always opportunity for great people.

For those that have roles at Oracle, may you start with a clean slate, ready to take on the myriad opportunities ahead. With the same passion and tenacity for Oracle’s success that you’ve had for Sun’s, and a renewed sense of energy around executing on a far broader mission. There is no doubt in my mind you, and Oracle, will be remarkably successful, beyond the market’s wildest expectations. But it’s important you come to work thinking, “Sun is a brand, Oracle’s my company.” Don’t look for ways to preserve or dwell in “how we used to do things.” Look for ways to help customers, grow the market, and improve Oracle’s performance. 

Sun is a brand, Oracle is your company.

And to that end, with nine months of getting to know them, I’ve found Oracle to be truly remarkable, led by remarkable people. From Larry on down, they understand the enormity of the opportunity before them, and they’re more than prepared to execute on it – across the board. I’ve seen their commitment and focus, now they need yours. I’m confident you’ll give it the 10,000% effort it deserves–and we’ll all see the end result.

So thank you, again, for the privilege and honor of working together. The internet’s made the world a far smaller place–so I’m sure we’ll be bumping into one another. 

Go Oracle!

Jonathan

FURTHER READING:

[Image credit: igrec /Fllickr]

We’ve launched a new commenting tool, Disqus. For the full story on all of its functionality, click here. To begin commenting right away, you can log in below using Facebook Connect or Disqus—you can also log in using an existing AllThingsD account. Learn more about how Disqus collects and uses information in connection with the comments tool.
  • Sun_has_to_set
    So, everybody agrees that Sun was a great company.
    For employees it was a great workplace (I am an ex-employee) and I have experienced this first hand in our Bangalore office.
    Sun was a great innovator and changed the technology market as never beofre - I don't think anybody will challenge this statement.

    Now, many people are putting the blame on Jonathan.
    Yes, he had taken the responsibility to drive the company to profit, tried everything that was at his disposal and finally failed. Now, he is selling Sun, going home......with his pockets full......not just full, overflowing.....reward for failing!!!!

    But, I doubt, if anybody else would have made any difference.
    Everybody is telling that, he has failed.
    But, nobody is listing out how he could have succeeded.....what he did wrong and what would have been correct.....

    I feel that, with given situation, this was the best possible thing that Sun could get.
    Otherwise, it would have got thrown into the "Recycle Bin" of Computer history soon and nobody would have benefited!

    So, guys start doing the post-mortem and give suggestions, so that future entrepreneurs will not make the same mistakes and take correct steps at the right time!
  • michal_k
    Well, it's an easy one actually: you can't spend more than you earn for too long. People love SUN because for years SUN was selling great hardware and giving great software for free. It was a nice strategy as long as margins on hardware covered all the costs. The world has changed though. Hardware margins are close to zero. If you want to make money on hardware you have to compete on costs. You can't just have a software division that creates great products, enormous costs and close to zero revenue. It makes you lovable but it doesn't make you financially successful.

    To sum it up, for SUN to survive, SUN would have to stop being SUN as we know and like. They would have to stop subsidising software division and therefore they would become another software vendor. People don't like vendors as much as they like free stuff of high quality.
  • demodave
    There's another code of a riddle wrapped inside of an enigma in this missive:

    "I can’t begin to tell you how proud I am of my association with that cause and the people behind it, and the value we created for ourselves and those that exploited our innovations."
    and
    "Upon change in control, every employee needs to emotionally resign from Sun. Go home, light a candle, and let go of the expectations and assumptions that defined Sun as a workplace. Honor and remember them, but let them go."

    This clearly means, "My friends who I trust so dearly, please forget about all the stupid things that I have done, and remember me fondly, because I will be asking you all for jobs shortly!"
  • scot4ever
    The only good news on the Sun front in recent years is that at last it has been divested on the pony tailed little peon. It smacks of extreme arrogance that such a little man can proclaim to know how anyone still at or late of Sun might feel. This is a person who almost single handedly put a company on the rocks by his physical and mental absence at the helm...what a forgettable person he truly is.
  • trudyhotdog
    Did the author consider if it was APPROPPRIATE to post a private company email publicly? Just because someone leaked it, doesn't make it right to post it. I suppose it sells & draws readers.

    I am a Sun/Oracle "rank & file" employee. Schwartz & his staff had 1 primary measurement: shareholder value. By that measurement (no matter how you look at it), Schwartz & his staff failed. 2 ridiculous examples - the 4:1 reverse stock split & ticker symbol change - back fired simply because Schwartz & his staff lacked patience. I am disappointmented by Sun senior staff decisions, clearly those decisions caused most of us to suffer in countless ways. I'm sad for my brethren who were RIF'd & I desperately miss those who left by their own accord.

    McNealy is not without blame here. I've heard Scott & Ed Zander disagreed on the original RIF strategy after the .com bubble burst. And I often wonder... Would Ed Zander have been better successor to Scott McNealy?

    The past is now the past for SUNW (yeah, that other ticker symbol never felt right).

    I'm not sure what my future holds at Oracle, but clearly leadership there is strong. There will be clear direction, focus on profitability, focus on share holder value. I believe change truly does create opportunity & I'm looking forward to giving it a go.
  • trudyhotdog
    Did the author consider if it was APPROPPRIATE to post a private company email publicly? Just because someone leaked it, doesn't make it right to post it. I suppose it sells & draws readers.

    I am a Sun/Oracle "rank & file" employee. Schwartz & his staff had 1 primary measurement: shareholder value. By that measurement (no matter how you look at it), Schwartz & his staff failed. 2 ridiculous examples - the 4:1 reverse stock split & ticker symbol change - which back fired simply because Schwartz & his staff lacked patience. I am disappointed by Sun senior staff decisions, clearly those decisions caused most of us to suffer in countless ways. I'm sad for my brethren who were RIF'd & I desperately miss those who left by their own accord.

    Is Scott McNealy blameless here? I've heard Scott & Ed Zander disagreed on the original RIF strategy after the .com bubble burst. And I often wonder... Would Ed Zander have been better successor to Scott McNealy?

    The past is now the past for SUNW (yeah, that other ticker symbol never felt right).

    I'm not sure what my future holds at Oracle, but clearly leadership there is strong. There will be clear direction, focus on profitability, focus on share holder value. I believe change truly does create opportunity & I'm looking forward to giving it a go.
  • jeanjk
    because Ed did so well at motorola?
  • trudyhotdog
    Sorry for duplicate post
  • craigpLaidOffFromSUN
    All I know is that I'm GLAD I got my RIF payout in the bank this morning (mourning).

    I weep for all of my Sun brethren who will be disposed of, like so many dirty diapers. I weep for them because I understand Oracle's layoff packages are pretty slim compared to what we got. I weep because there will be 15,000 more folks competing for the same jobs I am. I weep because everything will be outsourced and soon no one will be able to get a job.

    I weep... I weep....

    But mostly I weep cause I can't get no f***ing health insurance at a reasonable price!
  • demodave
    Might help not to call your Sun brethren dirty diapers ....
  • craigpLaidOffFromSUN
    My Sun brethren walk on water as far as I am concerned. I had the privilege of working with some of the best and brightest people around. These folks ROCKED!

    Now they will just become headcounts to be reduced.
  • demodave
    I completely understand the repercussions of the RIF business. But I don't consider the RIF'd to be the chaff. I consider them the wheat. The rats running the mill don't seem to understand the difference.

    Just thought that your word choice, though well intended, might be expressed somewhat differently. No harm, no foul, 'K
  • concerned4java
    Incredible that a company like Sun could not survive with so much great technology behind them. The only reason could be the incompetent top execs. While the rank and file did their job in turning out these great technology, wonder what the top execs were doing?
  • Mike2011
    “I like and I trust Sun.” Does anyone say the same for Oracle? Didn't think so.

    And what's with the "10,000% effort" It sure one-ups George McGovern's imfamous endorsement of his would-be running-mate Tom Eagleton. Hope that doesn't mean a 10x flameout is ahead.
  • bent0ne
    Schwartz will never get it. He didn't understand it when we purchased his company, when he was my boss and continues to show his inability to learn & improve.

    It is not one side for anything with an acquistion. Both or all sides must pull together and it is called integration.

    Just look as all of his acquisitions and the constant (every 6 month) layoff or RIF (reduction in workforce) while keeping a constant ~40K workforce.

    Sad to see one person and his staff run one of the most significant corporations into the ground
  • scot4ever
    You said it my friend; however you have to remember that McNealy put him in place so what does that say McNealy's judgement.
    Having worked for Sun 9 years out of the last 10 I can tell you that almost every employee I ever spoke to over the period had nothing good to say for Schwartz and were frustrated as hell because of the lack of direction and sound leadership from the board. The aquisition of STK was the biggest head shaker for just about everyone outside of the boardroom.
  • trudyhotdog
    So sad. So sad.
  • jru313
    Wow, could the respondents of this article be anymore pessimistic? Sun was faltering for years, we all know that, Oracle is a marketing machine, we all know that. Together they can hopefully build the Sun brand into a powerhouse that it once was. I'm optimistic and can't wait to see what comes out of this. Go Oracle/Sun!
  • sunsecret
    The first letters of the first 7 paragraphs of the memo have a hidden message:

    "BEAT IBM"
  • scot4ever
    Keep drinking the coolaid!!
  • Ben Carlson
    "I've never had a bad day". Your employees would beg to differ, JS. That's two companies in a row that you've had to sell off because you were incapable of leading them forward.
  • Mike2011
    “I like and I trust Sun.” Does anyone say the same about Oracle? Didn't think so.

    And what's with the "10,000% effort"? It sure trumps George McGovern's fateful endorsement of his would-be running mate Tom Eagleton. I hope it doesn't portend a 10x flameout upcoming.
  • Mike2011
    Sorry for the duplicate post.
  • simvistatin
    My little pony does it again!!!

    For those who don't know, the exec staff actually gave him this name. :)
  • guest19780
    Easy for pony-tail boy to say as he rides off into the sunset with millions of dollars in his payout pocket like other Sun execs who truly ruined the company. Rank and file get screwed and they get millions for failure. How quaint. The little guy gets screwed again.
blog comments powered by Disqus

Best of Digital Daily

Latest Digital Daily Videos

More Videos »

About John

John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

Ethics Statement

Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.

Read more »

alt.misc

Older at alt.misc »