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Wednesday, January 16, 2008

Software Industry Continues to Consolidate

As Zack reported, Sun is buying MySQL for ~$800M plus $200M in options. Interestingly, the MySQL acquisition represents 8% of Sun’s current market cap (~$13 Bil). While I’m happy for the MySQL team, my views on Sun’s OSS “strategy” are mixed at best.

Let’s hope Marten and team can help Sun realize that there is value in software…good software, not the stuff that was 5th in class, and remains so after open sourcing it.

Oracle also announced it will acquire BEA for $8.5 Bil, a higher price than Larry rejected a little while back. The deal also represents 8% of Oracle’s current market cap (~$109 bil).

The software industry continues to consolidate. Next question…When will Oracle buy Sun?

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About the author:
Savio Rodrigues is a product manager with IBM's WebSphere Software division. He envisions a day when open source and traditional software live in harmony. This site contains Savio's personal views. IBM does not necessarily agree with the views expressed here.
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