Pillar investors will only receive cash from Oracle for the Pillar acquisition if Pillar revenues in 2014 exceed net losses from 2011 to 2014. The acquisition is structured so Oracle boss Larry Ellison's half billion dollar loan to Pillar is turned into preferred stock with other investors holding common stock. Larry gets 1.5 …
Maybe a better title
Life with Larry...
...if you take up the dance, then you must pay the piper!
Larry strikes me as the sort who'd model his director meetings much like a mafia boss meet'n'greet. Given the chance I can well imagine him stalking the boardroom holding a baseball bat ready to sort out the company's position!
Good but not good enough
The Pillar Axiom system is an interesting product and is fairly well executed but actually brings very little that is new to the table. If it had came to the market 10 years sooner it might have been able to build a market for itself. The building block and brick concept has been done by a number of other vendors and somewhat better. There is nothing wrong with the product but nothing that really makes it stand out either and in a dynamic market that is changing the way the current storage market is that isn't good enough.
This is readily apparent by the fact that only LPOD's Oracle was willing to take the company even at the bargain bin price of free. Even if Oracle dumps in sales resources and efforts the money they might get paid in two years will only soften the blow and not eliminate the investors from losing a good amount of money. Though fortunately Oracle can just squeeze their customers a bit more if they want.
The real question is does Pillar make any sense at all for Oracle and its product mix or will it simply be a distraction?
"Oracle's channel must be an attractive proposition"?
Erm... wasn't there another Reg article recently pointing out that Oracle's resellers were so upset with Oracle that Oracle's hardware sales had dived and Larry was having to offer them wedges of cash to get them to play with him?
I'm not so sure telling those channel partners they may have to stop selling other and more popular storage products to sell Larry's market-trailling ones is going to help those relationship issues!
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