This is a period fraught with uncertainty for the employees of the wholly-owned Indian subsidiary of Sun Microsystems after database giant Oracle announced the acquisition of its parent for $7.4 billion on April 29.
Sun Microsystems has around 1,200 employees in India and an estimated turnover of around Rs 1,300 crore (Sun does not give break-up of India numbers).
In an exclusive interview to
Leslie D'Monte, VP and MD (India) of Sun Microsystems,
Anil Valluri, says he is taking solace from Oracle global chief Larry Ellison's assurance to a section of the global media that we want to hold on to Sun's experienced team of first-rate hardware engineers.
Even as he keenly watches the global developments unfold, Valluri gives his take on the acquisition while detailing the India picture. Edited excerpts:
What was your initial reaction to the acquisition?It was surely one of the complete surprises since many names (including that of IBM and HP) were floated except that of Oracle. However, its a sense of relief that has now set in since theres hardly any overlap of technologies with Oracle, except for some middleware applications. I must add, though, that we still operate as two independent entities even in
India, since the regulatory and shareholder approvals are yet to fructify.
Theres always that one per cent probability that the deal could fall through (Incidentally, shareholders of Sun Microsystems have slapped Oracle with three class-action suits seeking to block its acquisition by Oracle. The shareholders have also named Oracle in the lawsuits).
If everything goes smoothly, by when do you see the merger panning out in India?Globally, the deal is expected to be through by summer. That should mean anywhere between July and September. Oracle is known for acting quickly when it comes to acquisitions. After that, Oracle will tackle other
countries, including India. My guess is that the India integration should start taking place by the end of the year.
How have Sun's Indian employees reacted?To begin with, I must say we were never overstaffed. Of course, we all remain wary. That's bound to happen when any acquisition takes place. Having said that, Oracle has globally indicated it would like to retain talent from Sun. This is a new business for Oracle, and the company will need skilled staff. We will see what happens. Its way too early to draw
any meaningful conclusion.
Are your customers confused too?Our customers have been with us for years.