SpringSource Acquired by VMware for $420 Million
Published August 14th, 2009 Under News | Leave a Comment
August 10, VMware announced a definitive agreement to acquire SpringSource. VMware and SpringSource plan to deliver compelling new solutions that enable companies to more efficiently build, run and manage applications within both internal and external cloud architectures. Read more
Sun is Buying MySQL
Published January 16th, 2008 Under News, Software Development | Leave a Comment
It should be something related to the sales period as the same day that Oracle scoop BEA Systems, Sun Microsystems announced it has entered into a definitive agreement to acquire MySQL AB for approximately $1 billion.
MySQL was forecasted to set an IPO this year, but it seems that with the difficult conditions of the stock market its initial investors have chosen the easy solution to cash their money by letting Sun acquire the company.
For Sun, who recently changed its NASDAQ stock ticker from SUN to JAVA, it is a confirmation that the new strategic direction is in software and services. This move is therefore an important step to transform itself more in a service oriented company. With MySQL, Sun acquires a fast-growing company that has already a dual open source-commercial approach. Its estimated 2007 revenues were around $70 million. It is also a quick and good ticket to enter the database market already occupied by its competitors (Microsoft, Oracle and IBM). We suppose that Sun will not touch a lot to the existing MySQL organization. Being backed by a bigger company will bring an increased credibility and a better sales channel. Sun could also provide additional resources to improve its product so that it will become a more fierce competitor against Oracle.
The acquisition could also help Sun to propose its own alternative to the open source Linux/Apache/MySQL/PHP (LAMP) architecture. As it put its Solaris operating system in open source last year, it could propose a Solaris/Apache/MySQL/Java (SAMJ) pack that could be optimized. This could be a real alternative to the Windows ecosystem that is backed by a “old” company, thus allowing medium-size companies to have the impression to make a safer transition than with a pack of dispersed open source projects.
This move also changes the landscape for the other companies operating in the open source database area, like PostgreSQL and Ingres. However it is also a financial validation of the open source commercial model and some companies could end being the target of a bigger fish in the future. I will not be surprised if companies like Red Hat, HP… or Yahoo! will make some acquisitions in the sector in a near future.
Oracle Finally Acquires BEA Systems
Published January 16th, 2008 Under News, Software Development | Leave a Comment
After a small one month battle with an offer at $17 for share last October, Oracle Corporation and BEA Systems announced today they have entered into a definitive agreement under which Oracle will acquire all outstanding shares of BEA for $19.375 per share in cash. The offer is valued at approximately $8.5 billion, or $7.2 billion net of BEA’s cash on hand of $1.3 billion. It seems that the will of certain BEA investors to make a substantial gain and the fact that Oracle proposed a better price allowed finally the deal to be concluded, even if BEA board previously asked for $21. The current stock market situation is different from last October and this could be financially a good deal for BEA shareholders, also because it seems that nobody was ready to pay more than the previous Oracle offer.
What benefits could Oracle achieve with this deal? Technically, it will acquire Web server and transaction monitoring software expertise. Even if Oracle has already its own set of products competing with BEA Systems, its technical reputation is a little bit lower in this area. Combined market share put Oracle in the number one position in the middleware market. However, Oracle will have to play it tactfully to keep the core technical team behind BEA products. Financially, the acquisition could provide additional revenues, a strategy Oracle has followed these past years with PeopleSoft and other targets. In this area, Oracle seems to transform itself in a Computer Associates-like company, more driven by financial interests than technical capabilities.
In the winners side of this situation, we could certainly find IBM and Red Hat’s JBoss, as uncertainty about the future of a product is always a strong topic that buyers will consider when the look for their Web server. Also some companies do not like to have too much of their software infrastructure locked to a single supplier. Losers will be BEA Systems customers, because a change of ownership always rise questions on the future roadmap of the products and the availability of knowledgeable people to provide some support. This is mainly true for BEA’s Tuxedo transaction processing product, an old software that doesn’t seem to fit into Oracle product portfolio.