Undeterred by the challenging takeover of PeopleSoft last year, Oracle is now eyeing the acquisition of the open-source database company MySQL – a sign that the software giant is poised for a significant strategic transformation.
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| Image: Infoworld |
Despite continuously diversifying its product offerings, Oracle’s core business still revolves around proprietary database software developed in-house. In contrast, MySQL stands out as a pioneer in commercializing open-source products.
MySQL’s CEO Marten Mickos has confirmed Oracle’s intentions in an interview at the Open Business Workshop, though he did not disclose specific details regarding the timing or the amount Oracle “proposed”.
However, much like PeopleSoft initially, MySQL has declined Oracle’s overture, citing a desire to maintain independence for the open-source software company.
A Smart Move
Analysts believe that Oracle’s proposal to acquire MySQL is a very shrewd move. Instead of resisting open-source trends, they have recognized that at some point, open-source is inevitable. Moreover, if it is indeed inevitable, why not take the proactive approach and act before competitors do, suggested analyst Stephen O’Grady.
According to O’Grady, Oracle could benefit from MySQL in much the same way IBM did after acquiring Gluecode, a company that specialized in selling open-source Java application server software, competing with IBM’s proprietary WebSphere product. Now, IBM offers Gluecode’s software as a free product called WebSphere Community. Furthermore, acquiring MySQL would open up a significant new market for Oracle’s own products.
Just last Wednesday, Oracle successfully acquired Sleepycat, a small-scale open-source database company, and last year it took over InnoDB. Clearly, Oracle’s ambitions in the open-source realm are far from modest. According to a report from BusinessWeek, Oracle even plans to acquire the open-source application server company JBoss as well.
Destined to Succeed
