November 19, 2009

Europe's dishonest squeeze play on Oracle over MySQL

The EU claims to be the friend of open source. But insisting on a spin-off of MySQL benefits no one -- except a tiny European software maker afraid to compete with Oracle

I've never been a fan of Oracle, a company that bullies its customers and used its billions to scarf up nearly all of its competitors in enterprise software. But Larry Ellison and company are right to stand up to the European Union. The demand by the European Commission (the EU's executive arm) that Oracle agree to spin out MySQL before approving its $7.4 billion acquisition of Sun is unnecessary and destructive. And with a few exceptions, there's strong support for that position in the open source community.

"Unless Oracle decides to snuff out MySQL entirely, it's hard to see why it would be a bad thing. They have resources to further development and to build community. And since MySQL will still be freely available regardless, users can simply opt to stick with an unpaid version," says Dave Rosenberg, co-founder and former CEO of MuleSource.

[ Relive Sun Microsystems' rise and fall in InfoWorld's slideshow. | Neil McAllister traces who wins if Oracle loses MySQL. ]

Exactly. Oracle claims -- and I agree -- that it has no reason to damage MySQL. It's simply not a significant threat to Oracle's position in the enterprise database market. In fact, it's complementary, giving Oracle entry to companies that use MySQL on a departmental or work team level.

Moreover, "Oracle has shown itself to be a pretty good steward of the [open source] Sleepycat technology it bought a couple of years ago," argues Bernard Golden, a longtime open source consultant and author.

Who's the bully now?
So why is the EU throwing its weight around? "The EU wants to spawn a native IT industry," says Dennis Byron, an analyst at IT Investment Research. What's more, he says, the big winners if the spin-off occurs are likely to be  Michael Widenius and others who are attempting to build a MySQL fork called Maria into a business, he says.

There's also the possibility that German software maker SAP, Oracle's most potent rival in enterprise applications market, has been using its political muscle to block the deal -- a claim SAP denies.

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Michael Forner 19-Nov-09 6:45am
I heard Monty only made $100m on the sale of MySQL, so it's not fair that he had to share the proceeds with other employees. He needs the open source community to pull together to help him win his case in the EU so he can make get the EU to grant him the copyright to MySQL and make the billion he feels he deserves. Otherwise it's just not fair!!
mdulcey 19-Nov-09 7:19pm
1 reply
MySQL may not be competitive with Oracle in the large enterprise market -- YET. But it's been moving in that direction for years, growing up as a database along with its customers. Oracle owning MySQL will prevent that from happening -- or at the very least, force all such development to be done by the community rather than being funded by the revenues from MySQL support -- in order to keep the open-source product from competing with its expensive enterprise offerings. Sorry to disillusion you, but this time Stallman and the EU regulators are right. Oracle's acquisition of MySQL would be anticompetitive, and would keep the main likely open-source competitor for Oracle and other expensive enterprise databases from emerging as an alternative.
Tragicomix 20-Nov-09 6:37pm
1 reply
"MySQL may not be competitive with Oracle in the large enterprise market -- YET" What you are saying is that the EC gets to play fortune teller and can decide what mergers to approve or disapprove based on what they think may or may not happen in years to come.
mdulcey 1-Dec-09 2:06pm
1 reply
No crystal ball needed; all you have to do is extrapolate from the development path of MySQL for the past few years. Just about all the new features added to MySQL have been to make the database more enterprise ready: full transaction support, stored procedure support, larger-scale database replication. Unless Oracle puts on the brakes, MySQL will continue to move in that direction, not just to capture new customers but to allow existing users of MySQL to continue using it as their enterprises and databases grow.
Tragicomix 2-Dec-09 1:18am
"...all you have to do is extrapolate..." That qualifies as using a crystal ball. There's a lot of good products, sometimes the best in their class, that never made it and not because they didn't have their chance. The success of a software product cannot be predicted based on its quality and on its features. That's just wishful thinking. It's amusing that shortly after Sun bought MySQL the blogosphere was full of negative comments about MySQL and how Sun should have gone with some other open source database. Now that ORACLE wants to buy Sun, MySQL has become such an outstanding database and THE reason why ORACLE wants to buy Sun.
cmaurand 20-Nov-09 10:19am
1 reply
The spinoff of MySQL is to benefit SAP which will run on either Oracle or MySQL. If Oracle gets Sun with MySQL, then SAP users loose the choice of database vendor. SAP spent a pretty penny working on MySQL so that SAP would run on it and so that MySQL would scale up to large installations. Oracle is trying to downplay MySQL's scaleability to sell more Oracle licenses and to convince the EU that MySQL and Oracle play in different markets. They don't. MySQL is eating Oracle's lunch and Oracle has been gunning for it for quite a while. Bill, think globally. This is about SAP vs. Oracle. MySQL needs to be spun off from Oracle. On the other hand MySQL's creator (Monty Wideneus)is working on a fork of MySQL code (Called MariaDB http://www.askmonty.org) that would take over for MySQL if Oracle got their hands on it. Point of disclosure, I work for a shop that runs MS SQL Server.
Tragicomix 20-Nov-09 6:49pm
"then SAP users loose the choice of database vendor" If that is problem SAP can always go with another open source database. If they invested so much in MySQL maybe they should have bought it or SUN. It shouldn't be the responsibilty of the EC to protect the investments of SAP nor its customers.
Primetime 5-Dec-09 1:09am
In my opinion, the EU has no right to approve or deny the merger of two AMERICAN companies. Sun is shedding American jobs, and some ignorant old lady is concerned about a DBMS that Sun never should have acquired in the first place. There is still PostgreSQL, which -- in my opinion -- is superior to MySQL. Who cares if Oracle discontinues MySQL? I think Oracle should just acquire Sun, anyway. They should ignore Neelie Kroes and tell her to go screw herself.

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