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February 15, 2006 3:36 PM PST

Oracle tried to buy open-source MySQL

SAN FRANCISCO--Oracle tried to acquire open-source database maker MySQL, an indication of the profound changes the software giant is willing to make as it adapts to the increasingly significant collaborative programming philosophy.

MySQL Chief Executive Marten Mickos confirmed the acquisition attempt in an interview at the Open Source Business Conference here but wouldn't provide details such as when the approach was made or how much money Oracle offered.

He did, however, say why he turned down Oracle's offer: the desire to keep his company's independence. "We will be part of a larger company, but it will be called MySQL," Mickos said.

Oracle didn't immediately comment on the acquisition offer.

Though it is increasingly diversified, Oracle's primary business is selling its own proprietary database software. MySQL, in contrast, is a leader among several companies trying to commercialize rival open-source products.

The acquisition would have been a smart move for Oracle, said Redmonk analyst Stephen O'Grady.

"It all comes back to the question of cannibalizing an existing business," O'Grady said. "If you determine that to some extent it's inevitable, wouldn't you prefer that you do it, instead of your competitors?"

O'Grady said Oracle could benefit from MySQL in the way that IBM has from its acquisition of Gluecode, a company that commercializes the open-source Geronimo Java application server software and competed with IBM's own proprietary WebSphere product. IBM now offers Gluecode's software as a free product called WebSphere community edition.

"They could position it as a lower-end alternative, much as IBM has done with WebSphere CE, recognizing that their larger accounts aren't likely to switch from the enterprise-class database anyhow," O'Grady said. At the same time, buying MySQL could "open up a very sizable new market for themselves."

The database market is in the midst of major changes. IBM now offers a lower-end version of its DB2 product for free, following similar moves by Microsoft and Oracle. At the same time, companies such as Ingres and EnterpriseDB are trying to build high-end open-source database packages.

MySQL, based in Sweden and Cupertino, Calif., announced in January that it's been profitable for two quarters. But it's not turning down outside money. MySQL announced Monday it raised $18.5 million in a third round of funding from Institutional Venture Partners, Intel Capital, Red Hat, SAP Ventures and Sumitomo's Presidio STX investment subsidiary.

Oracle's financial moves, however, are orders of magnitude grander. Its major buying spree resulted in the acquisitions of Siebel Systems for $5.8 billion and PeopleSoft for $10.3 billion.

Oracle already has bought two small open-source database companies--Sleepycat on Tuesday and InnoDB in 2005. But its open-source ambitions clearly are larger; for example, BusinessWeek reported that Oracle is expected to acquire open-source application server maker JBoss.

Mickos and other executives eagerly note that the MySQL database is gradually maturing with higher-end features, but they deny they've got Oracle in their crosshairs. Oracle is often used in back-end databases that power complex, massive software such as enterprise resource planning packages (ERP) from SAP or PeopleSoft.

"We are not used in all the ERP stuff. We are adding those features, but we are not going to be running PeopleSoft applications any time," Mickos said. Instead, MySQL is aiming for next-generation applications at companies such as Workday, a software-as-a-service start-up being launched by PeopleSoft co0founder Dave Duffield.

In reality, the MySQL and Oracle do compete. "They're obviously entrenched in different areas of the market--Oracle at the high end, MySQL in the higher-volume, lower-end space," O'Grady said. "But is there overlap in the middle? Sure."

See more CNET content tagged:
MySQL, Stephen O'Grady, Oracle Corp., ERP, PeopleSoft Inc.

Add a Comment (Log in or register) 36 comments (Showing first 20 comments)
next up .....
by SqlserverCode February 15, 2006 4:17 PM PST
Oracle is going to buy everyone, Larry is out of control

http://www.otherthingsnow.blogspot.com/
Reply to this comment
next up .....
by SqlserverCode February 15, 2006 4:17 PM PST
Oracle is going to buy everyone, Larry is out of control

http://www.otherthingsnow.blogspot.com/
Reply to this comment
Not for sale
by February 15, 2006 4:50 PM PST
My SQL is not for sale. Glad they didn't sell out
Reply to this comment
Not for sale
by February 15, 2006 4:50 PM PST
My SQL is not for sale. Glad they didn't sell out
Reply to this comment
Everything has a price
by TarrySingh February 16, 2006 4:36 AM PST
And it's amatter of time before you give in. No harm in playing hard to get though.

anyways question is why Oracle should continue to chase MySQL. WHY? well answer is clear.
SAP is working too close with MySQL. Reason enough. but seriously the bid to move in aggressively into the SMB market. MySQL has got to be the buy Oracle is waiting for. With the plans to buy Jboss, it already will have a good light weight App server and with a good light db server which will/should be tipped "Oracle lite" (eventually).

So a little late in the game (IMO they should have done this long ago!)but still not worth giving up!!

Cheers
Tarry
http://tarrysingh.blogspot.com
Reply to this comment View reply
Everything has a price
by TarrySingh February 16, 2006 4:36 AM PST
And it's amatter of time before you give in. No harm in playing hard to get though.

anyways question is why Oracle should continue to chase MySQL. WHY? well answer is clear.
SAP is working too close with MySQL. Reason enough. but seriously the bid to move in aggressively into the SMB market. MySQL has got to be the buy Oracle is waiting for. With the plans to buy Jboss, it already will have a good light weight App server and with a good light db server which will/should be tipped "Oracle lite" (eventually).

So a little late in the game (IMO they should have done this long ago!)but still not worth giving up!!

Cheers
Tarry
http://tarrysingh.blogspot.com
Reply to this comment View reply
ORACLE would be crazy
by Blito February 16, 2006 5:31 AM PST
...to buy MySQL as it just isn't their field. Sure, maybe in the 'locked in' 90s where everything had a price they could buy it, strip it, and repackage it in a redundant bloat-ware scheme leading to vaporware virus ridden nightmares, but not now as it would be too costly to fool customers the second time around.

What's interesting I think is how MySQL has seemed to create a newer industry for the mid-database market here so they can have staying power. message boards etc.
In the 90s I think we had too much bloated software I think for databasing. Was difficult to do mid market stuff then. It was just expensive.
Reply to this comment View reply
ORACLE would be crazy
by Blito February 16, 2006 5:31 AM PST
...to buy MySQL as it just isn't their field. Sure, maybe in the 'locked in' 90s where everything had a price they could buy it, strip it, and repackage it in a redundant bloat-ware scheme leading to vaporware virus ridden nightmares, but not now as it would be too costly to fool customers the second time around.

What's interesting I think is how MySQL has seemed to create a newer industry for the mid-database market here so they can have staying power. message boards etc.
In the 90s I think we had too much bloated software I think for databasing. Was difficult to do mid market stuff then. It was just expensive.
Reply to this comment View reply
ARE YOU FRICK'N CRAZY
by OneWithTech February 16, 2006 6:29 AM PST
If MySQL sells out to Oracle they would have single handedly
F'ed up the internet and data-basing as a whole.

Oracle is a for profit company that will destroy MySQL and what
it's used and stands for. Lets not forget what PHP/MySQL stands
for:
OPEN SOURCE, FREE, OPEN, FREE.

Who the F'K does Oracle think they are. Are they trying to create
a Monopoly in the Database world. This acquisition would
confirm a TRUE Monopoly.

I would strongly disagree and let it be known if you use PHP or
MySQL in anyway. You know, like I use it for
www.TechViewsToday.US as well as a host of other bulletin
board services that I don't get paid for and in turn saves my
clients thousands and thousands of dollars years.

Small business clients will be affected by this acquisition the
most. If you run a web service or your company uses the net in a
database way this WILL AFFECT YOU.

Do not believe the smoke that will be blown by Oracle. There
only out for the money and they will KILL MySQL. If you don't
believe me as your Webmaster or Web Developer how this could
affect you web presence as a whole.

"This acquisition CAN'T happen!"
Reply to this comment View reply
ARE YOU FRICK'N CRAZY
by OneWithTech February 16, 2006 6:29 AM PST
If MySQL sells out to Oracle they would have single handedly
F'ed up the internet and data-basing as a whole.

Oracle is a for profit company that will destroy MySQL and what
it's used and stands for. Lets not forget what PHP/MySQL stands
for:
OPEN SOURCE, FREE, OPEN, FREE.

Who the F'K does Oracle think they are. Are they trying to create
a Monopoly in the Database world. This acquisition would
confirm a TRUE Monopoly.

I would strongly disagree and let it be known if you use PHP or
MySQL in anyway. You know, like I use it for
www.TechViewsToday.US as well as a host of other bulletin
board services that I don't get paid for and in turn saves my
clients thousands and thousands of dollars years.

Small business clients will be affected by this acquisition the
most. If you run a web service or your company uses the net in a
database way this WILL AFFECT YOU.

Do not believe the smoke that will be blown by Oracle. There
only out for the money and they will KILL MySQL. If you don't
believe me as your Webmaster or Web Developer how this could
affect you web presence as a whole.

"This acquisition CAN'T happen!"
Reply to this comment View reply
Isn't there field!
by OneWithTech February 16, 2006 6:31 AM PST
You should really get out the computer business!
Reply to this comment
Isn't there field!
by OneWithTech February 16, 2006 6:31 AM PST
You should really get out the computer business!
Reply to this comment
why to buy others
by itsmani1 February 16, 2006 10:20 PM PST
to buy others these people want to Monopolize the market which is not good at all.

http://maair.net
http://mannan.zabvision.edu.pk
Reply to this comment
why to buy others
by itsmani1 February 16, 2006 10:20 PM PST
to buy others these people want to Monopolize the market which is not good at all.

http://maair.net
http://mannan.zabvision.edu.pk
Reply to this comment
MySQL must be GPLd always, then aquiring is OK
by sathishmls February 16, 2006 10:56 PM PST
Whether it may be ORACLE trying to acquire MySQL or trying to ACQUIRE JBoss , they can do it but the products like MySQL, JBoss, etc should remain GPLd or BSD Licensed or any equivalent license to have a better community.
Reply to this comment
MySQL must be GPLd always, then aquiring is OK
by sathishmls February 16, 2006 10:56 PM PST
Whether it may be ORACLE trying to acquire MySQL or trying to ACQUIRE JBoss , they can do it but the products like MySQL, JBoss, etc should remain GPLd or BSD Licensed or any equivalent license to have a better community.
Reply to this comment
Proves how evil Silicon Valley is.
by free_people February 17, 2006 10:30 AM PST
1st, Oracle vs MySQL shows the level of Hoax that surrounds us in regard to IT business.
I mean here you have government organizations, either US government or governments
under US control, paying 10Mill to 100Mill contracts to Oracle for Oracle SQL DB
when they can get the same SQL DB form MySQL for free or a tiny fraction of that amount.
Why!
Why is it that the companies worldwide use MySQL for their DB needs and do just fine, while
some Govs and Fortune 1000 give Oracle $10 to $100Mill payments for Oracle software
license when the same software license via MySQL is Free!
And of course would then this not give Oracle every incentive to buy and take out
of (real) competition MySQL which is providing the people (small businesses) with
a much lower cost of SQL DB compared to Oracle!
Only a blind man would not see how "evil" this take over would be.

Here are my predictions as to some tectonic movements in the IT business:
MySQL will replace Oracle more and more.
Linux will replace Windows more and more.
AnooX will replace Google & Yahoo more and more.
ORSN will replace ICANN more and more.
Specially in regard to companies/usage outside of USA.

Now watch out for Silicon Valley mafia, who have access to Billions of dollars, to try to
take out these companies that are providing us, the people world wide with choice &
freedom, and lower costs, in these critical areas of the IT business.
Can we do anything about it?
I am not sure, the people have proven themselves be a patsies too often.
But maybe this time, people will be able to see through the smoke & mirrors and
see that it is not good for us at all to have so much of our lifes controlled by a handful
of companies, people, from Silicon Valley or USA in general.
Reply to this comment View all 2 replies
Proves how evil Silicon Valley is.
by free_people February 17, 2006 10:30 AM PST
1st, Oracle vs MySQL shows the level of Hoax that surrounds us in regard to IT business.
I mean here you have government organizations, either US government or governments
under US control, paying 10Mill to 100Mill contracts to Oracle for Oracle SQL DB
when they can get the same SQL DB form MySQL for free or a tiny fraction of that amount.
Why!
Why is it that the companies worldwide use MySQL for their DB needs and do just fine, while
some Govs and Fortune 1000 give Oracle $10 to $100Mill payments for Oracle software
license when the same software license via MySQL is Free!
And of course would then this not give Oracle every incentive to buy and take out
of (real) competition MySQL which is providing the people (small businesses) with
a much lower cost of SQL DB compared to Oracle!
Only a blind man would not see how "evil" this take over would be.

Here are my predictions as to some tectonic movements in the IT business:
MySQL will replace Oracle more and more.
Linux will replace Windows more and more.
AnooX will replace Google & Yahoo more and more.
ORSN will replace ICANN more and more.
Specially in regard to companies/usage outside of USA.

Now watch out for Silicon Valley mafia, who have access to Billions of dollars, to try to
take out these companies that are providing us, the people world wide with choice &
freedom, and lower costs, in these critical areas of the IT business.
Can we do anything about it?
I am not sure, the people have proven themselves be a patsies too often.
But maybe this time, people will be able to see through the smoke & mirrors and
see that it is not good for us at all to have so much of our lifes controlled by a handful
of companies, people, from Silicon Valley or USA in general.
Reply to this comment View all 2 replies
MySQL- Oracle NOT all seeing eye!
by wjackson333 February 18, 2006 10:34 AM PST
Greed seems to cloud Oracles vision of the future of open
source! The more that they position themselves in the market as
open source macrophages the more the IT community will
regard them as a microsoft facsimile. Buying out MySQL and
reducing it to a enterprise bait and lure freebee will only
increase the already growing animosity against them.
Compitition is a healthy economic departure from the 80s & 90s
microsoft philosophy. If Oracle is afraid of a little compitition in
the middleware spectrum of the market and insits on aggressivly
attacking openware they are on the track of producing a less
profitable enterprise. Many consumers, and more recently
businesses, have looked for alternitives to proprietary software
solutions causing a small, but marginal dent in big guys profit
margins. When companies spend all their resources in
attempting to eleminating their competitors rather than
improving their current product they loose their competitive
edge. Look at microsoft! They have been struggling to release a
new version of Windows for how long now? Too much time in
the papermill causes a shortage of cotton! The bigger they are...
the harder they FALL!!!
Reply to this comment
MySQL- Oracle NOT all seeing eye!
by wjackson333 February 18, 2006 10:34 AM PST
Greed seems to cloud Oracles vision of the future of open
source! The more that they position themselves in the market as
open source macrophages the more the IT community will
regard them as a microsoft facsimile. Buying out MySQL and
reducing it to a enterprise bait and lure freebee will only
increase the already growing animosity against them.
Compitition is a healthy economic departure from the 80s & 90s
microsoft philosophy. If Oracle is afraid of a little compitition in
the middleware spectrum of the market and insits on aggressivly
attacking openware they are on the track of producing a less
profitable enterprise. Many consumers, and more recently
businesses, have looked for alternitives to proprietary software
solutions causing a small, but marginal dent in big guys profit
margins. When companies spend all their resources in
attempting to eleminating their competitors rather than
improving their current product they loose their competitive
edge. Look at microsoft! They have been struggling to release a
new version of Windows for how long now? Too much time in
the papermill causes a shortage of cotton! The bigger they are...
the harder they FALL!!!
Reply to this comment
 See all 36 Comments >>
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