Oracle (NASDAQ:ORCL) just got another reason to curse its 2010 deal for Sun Microsystems.
While a huge part of Oracle’s transformation has come on the strength of aggressive acquisitions, its 2010 deal with Sun — which produced serves and storage systems, among other hardware components — hasn’t panned out, with low-cost systems and free open-source software helping to deteriorate the hardware business.
Now, various computer experts believe there are security vulnerabilities in the Java language, and many are suggesting users disable the language on their Internet browsers.
Java is one of the most widely used languages across the world and often is at the core of business critical operations. For instance, when you make an ATM transaction, it’s a good bet that Java is working behind the scenes.
However, security usually is an issue with any language … though it sounds like Oracle may not have been as diligent in maintaining the Java over the years. Considering the company has far-flung operations in categories like ERP, the cloud, middleware and databases, it’s likely that Java represents a small piece of Oracle’s overall business.
The bigger worry is Oracle’s reputation. ORCL is well-regarded for its products’ security and reliability, so the company would be well-advised to take swift action to keep this black eye from swelling.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.