Oracle-Sun deal tangled up in red tape

The European Commission is to launch an "in-depth investigation" into the deal for Oracle to buy Sun Microsystems. Its concern, which will slow down the combination for about three months, is not over Java, as might reasonably be supposed, but Sun's ownership of the MySQL database franchise. 

Competition Commissioner Neelie Kroes said this:

"The Commission has to examine very carefully the effects on competition in Europe when the world's leading proprietary database company proposes to take over the world's leading open source database company. In particular, the Commission has an obligation to ensure that customers would not face reduced choice or higher prices as a result of this takeover. Databases are a key element of company IT systems. In the current economic context, all companies are looking for cost-effective IT solutions, and systems based on open-source software are increasingly emerging as viable alternatives to proprietary solutions. The Commission has to ensure that such alternatives would continue to be available."

So, a victory for open source? Maybe, if you buy the line that Oracle would trash MySQL to protect its own golden egg (the way it hasn't with PeopleSoft, JD Edwards, BEA or other companies it acquired). And that there is not a long list of swap-out OSS database alternatives from others.

A win for good governance and the level playing field? Maybe, if it weren't pretty clear that Sun is already losing customer faith while the closing of the deal plods on.

A red-letter day for Ms Kroes, Europe's fearless combatant of US tech firms? Maybe, if you think that the Microsoft probe was handled well.

Of a piece with the fundamental requirement to keep big business honest? Definitely, but...

The fact, and the big problem, is that both European and US regulators move at glacial speed, utterly out of keeping with an industry that moves faster than any other of comparable size. Even Oracle-PeopleSoft was held up, despite the fact that SAP dwarfed the combined concern.

What's badly needed is a regulatory body that can think and act quickly on key points so as not to slow down the needs of customers but also of the businesses themselves. Blocking a sizeable deal beacuse of a small component part like MySQL seems an unwieldy way of operating that does little for customers but potentitally quite a lot for the putative Oracle-Sun combination's rivals such as IBM, Microsoft, HP and Dell.


Add to Technorati Favorites


Comments

Lawrence Lanzilli | Published: 15:09 GMT, 06 September 2009

Oracle's Acquisition of Sun Microsystems

Why Larry Ellison is the Soon to Be King of the Data Center

http://www.associatedcontent.com/article/2109067/oracles_acquisition_of_sun_microsystems.html?cat=3


Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.


CIO White Papers

Legal risks of uncontrolled email and web use

Exploring the challenges facing IT Mangers today and vital steps to ensure safe internet an email use by employees.

The challenge of strategic alignment

Recent research also shows that many organisations give too much prominence to internally generated KPIs – controlling the controllable – rather than looking outwards at threats and opportunities on the horizon which can ultimately be far more influential on performance.

Six essential steps to successful IT centralisation

This report, based on the real experience of a recent centralisation project, is aimed at those involved in IT strategy within their organisation. It provides some practical insights for CIOs, CTOs, Heads of IT, IT Directors and those involved more closely with the service management function.

Managing email: Exploring common email management challenges (and how to overcome them)

We surveyed 157 IT professionals to understand the difficulties and opportunities faced by email managers. From this we were able to highlight some easy-to-manange solutions to their most pressing problems.


CIO UK - Business - Technology - Leadership

Differentiate your company with complete CRM

Focused on productivity and empowerment and leveraging the natural rhythms people work
What defines Complete CRM? How businesses can better engage customers and users, manage customer transactions, and analyse results to adapt and take advantage of changing business and economic circumstances.

DOWNLOAD

Oracle White Paper

IT Misuse Survey

Complete this survey and you could win a Nexus One.

CIO are running a short survey to discover how UK businesses are managing internet and email misuse in the Enterprise.

COMPLETE SURVEY

Virtualisation - The 'black hole' of security?

Covering the set of issues, ideas and perceptions discussed during a recently held debate about the effect of virtualisation techniques on organisational security. This paper provides a comprehensive account of all the subject matters debated and concludes with key takeaways and IDC recommended actions.

DOWNLOAD

Trend Micro



* *