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Oracle’s Hand In Sun’s MySQL Buy

Ellison also seen on grassy knoll with the Lindbergh baby

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Tech industry pundit John Dvorak thinks Larry Ellison had a shadowy hand in the billion dollar deal that brought MySQL to Sun.

How can a company afford a $1 billion price tag for an acquisition like MySQL, when the target only brings in about $60 million in revenue? Dvorak’s big question has a fascinating answer: Sun couldn’t afford it without help.

“So who can afford it? Oracle, that’s who. This deal stinks from top to bottom,” said Dvorak. “Sun and Oracle, have been strategic partners for years.”

Those with memories of the Cold War might liken Dvorak’s assessment to East Germany’s use of Bulgarian agents for some of their dirty work. He thinks Oracle wanted to kill off MySQL, which hurts its business, but knew it would never accomplish a takeover.

Dvorak also theorized MySQL could have drawn a much higher price tag than $1 billion had it been known the company would entertain a sale. He claimed that by virtue of being Swedish, MySQL kept negotiations quiet.

We think this is an odd point about the deal. Why would MySQL keep its interest in being purchased quiet?

The answer could be very simple. The service nature of MySQL’s business doesn’t fit with Google or Yahoo. Microsoft competes in the database space. If an Oracle bid for MySQL would have inflamed European regulators, they would be incandescent over a Microsoft bid.

Sun’s deal looks like what it has been promoted to be: a play at adding MySQL’s services business and growing it. Conspiracy theories may be fun, but like Majestic 12 should be viewed with skepticism. Sun (or Oracle) can’t kill off MySQL any more than Microsoft can kill off Linux.

Oracle’s Hand In Sun’s MySQL Buy
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  • Guest

    SUN has a wordwide sales channel. turning to services is proven to be a good model (see IBM and HP). But what should SUN sere on this channel?  They hardly have anything complete. Pieces of this, pieces of that. They were the dot in .net (back when it was a hype, not a CLI), they have a lot of accounts in the telco and ISP scene. But CIOS like one stop shopping. They go to Oracle or IBM, where they get middleware, DB, frontend. Now SUN will have a nice DB fit for 90% of the appservers tunning on an 1U departmental server. Oracle saw the same, that’s why they now offer OS support….

    I don’t think SUN would do such a favour for Oracle when Oracle is bombing them down to the iron, and out of the app server, OS market.

  • http://www.hemroidshelp.com hemroids

    "Sun and Oracle, have been strategic partners for years."

    Wow, this is news to me. It looks like the deal then made alot of sense for Sun, who tthen own assets in databasing that they can leverage against the partnership with Oracle.

  • http://www.animaroo.com puppies for sale

    I dont see the issue with there being a real or percieved partnership.

  • http://www.homeremedyhaven.com Home Remedies

    I think that there are serious conflicts of interest here

  • http://www.amarketplaceofideas.com FreemonSandlewould

    Mmmm….. Oracle just bought Sun / MySQL.

    Any followup on your arty? Seems like MySQL could indeed be in trouble.

    Time to get forkin’ the project !