Oracle might be considering acquiring Novell

Oracle might be considering acquiring Novell

A newspaper report has claimed that the database market giant Oracle is considering launching its own brand of a Linux Distribution. In addition, they are also considering a possibility of trying to acquire Novell Inc., which is currently the Linux’s No. 2 distributor in the market with its SuSE branded Distro.

This rumor seems to have worked in favor of Novell as its share rose nearly 4 percent in morning trading. Market leaders Red Hat saw a drop of 6 percent in the same period. Oracle is primarily in the business of selling database applications and if they acquire Novell or launch its own Linux distribution, it would enable them to provide customers with a more complete suite of software.

These combo packages are called stacks and are sold by competitors Microsoft and IBM. Oracle’s chief executive, Larry Ellison reported said in a statement to media group Financial Times that they might launch its own version of Linux operating system or might considered buying Linux distributor Novell.

This would be bad news for Red Hat, which recently announced their decision to acquire JBoss Inc., a maker of open-source “middleware” for a cool $350 million. Ellison said in a statement: “I don’t think Oracle and IBM want another Microsoft in Red Hat.”