September 22, 2009

Ellison: We won’t spin off MySQL

Oracle CEO urges approval of Sun acquisition, says Oracle's database does not compete with MySQL

Undaunted by European Union concerns over Oracle's proposed ownership of the open source MySQL database, Oracle CEO Larry Ellison insisted Monday that he would not spin off MySQL to get EU approval of Oracle's planned acquisition of Sun Microsystems and that Oracle's database does not compete with MySQL.

Ellison, in an interview before a gathering of industry dignitaries in San Jose, Calif., also laid out his vision of Oracle following in the footsteps of one-time IBM President Thomas Watson Jr.'s IBM and serving as a complete systems company.

[ In addition to the EU, some user are nervous about Oracle owning MySQL. | Relive Sun's storied history in InfoWorld's slideshow "The rise and fall of Sun Microsystems." | Learn why attendees at the JavaOne conference were skeptical of Oracle's buyout of Sun. ]

Appearing at a Churchill Club event and interviewed by former Motorola and Sun executive Ed Zander, Ellison emphasized that Oracle competes with databases such as Microsoft SQL Server and IBM DB2 but not MySQL. "We never compete against MySQL. [Oracle and MySQL] are both called databases; they address different markets," Ellison said.

"No, we're not going to spin it off," even if asked to by the EU, Ellison said. The EU is concerned about Oracle simultaneously owning MySQL, the leading open source database, and its own Oracle enterprise commercial database.

U.S. regulators have found the merger to be pro-competition and already approved it, Ellison said. "I think once [EU regulators] do their job, they're going to come to the same conclusion," he said.

Ellison expressed the urgent need to complete the $7.4 billion merger, which was announced in April. "Sun is losing $100 million a month," Ellison said. "We'd like to get this done." He stressed that Oracle wants "to save as many jobs as we can" via the merger.

With the Sun acquisition, which marks Oracle's major foray into computer hardware, Oracle hopes to mimic the dominance of Thomas Watson Jr.'s IBM, Ellison said. Watson Jr. was elected president of IBM in 1952, later became chairman, and stepped down as chairman and CEO in 1971.

"That's when IBM was really the dominant software company," Ellison said.

Oracle, he said, does not wish to compete with the likes of Dell. "We have a deep interest in the systems business," delivering hardware and software combinations that can be the backbone of most enterprises in America and the world, Ellison said.

"We're very interested in running airline reservation systems and we're very interested in running banking systems and telecommunications systems and that require both hardware and software," said Ellison. IBM is the company Oracle wants to compete with, he said.

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cmaurand 22-Sep-09 9:45am
Larry's full of it. MySQL has been eating Oracle's lunch. That's why he tried to buy it, then tried to cripple it. He may not spin it off, he might start charging money for it which will kill it. Monty's already working on a fork of the product anyway. Also Oracle doesn't compete that well with MS SQL server. For an installation of SQL server in my company, it would cost me around $100,000 just for one server. That doesn't include clients. For SQL server, its about $6,000 That's not even close to competition. Oracle is a better competitor to DB2. I doubt that he's going to be able to compete very well with AS/400's running DB2.

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