Dell is biggest loser in Oracle deal for Sun

Oracle (ORCL) is in the server business now. So is IBM (IBM), Cisco (CSCO), and Hewlett-Packard (HPQ). But these four companies are fairly evenly matched. HP has annual revenue of over $100 billion. So does IBM. Oracle's is less at $22 billion, but it has one of the highest operating margins in the software industry. Cisco's operating margins are nearly as good. And, all four have market caps in the $85 billion to $135 billion range. They all also have highly diversified businesses.

The one other large company in the server business, Dell (DELL), has almost none of the advantages of the rest. Its market cap is only $20 billion, a sign that the market does not like its prospects.