They Might be Giants, Oracle + Sun

In a surprise move today Oracle announced that it would be buying SUN and with that both MySQL, Java, and a host of other software and hardware. You may recall a few weeks ago, I wrote an article in my blog supporting IBM+SUN merger rumors, citing the good fit both in product set and in IBM's extensive support of open source initiatives. But an Oracle merger? it just didnt seem like a fit to me at first. Sure Oracle has always wanted to own MySQL, and in 2007 made a bid for it for $850mil, and Java kind of makes sense, but how will the rest of the company fit in?

I have to say, since the very early days of the WWW Oracle has been making the right bets on the Internet that have helped its bottomline. Back in 1994 when Sybase purchased the leading client/server IDE Powerbuilder, Oracle was building its own proprietary development tools. Then one year later Netscape(NSCP) went public and introduced the world to web development, that was the beginning of the end for client/server apps.

Both Oracle and Sybase had a lot invested in its proprietary platforms, but Oracle elected to open up to web development very early and released a cgi plugin for Oracle way before Sybase and any other DBs. On the other hand, Sybase (at the time the #2 DB player when I was working there) just spent $904mil on Powersoft and went into a protectionist business model. We all know who's database business grew as a result of the web's explosion, and now Oracle owns the enterprise database market.

In hindsight it seems obvious how important it was to invest in the new web technology instead of protecting its proprietary software. I left Sybase to join Netscape back in 1996 because the database wars were over with that move by Oracle, and I could envision the end of traditional client/server and the dawn of web development.

So in a move not so dissimilar from the big bet Oracle made in the very early days of the WWW, today it acquired MySQL and Java. Sure many are asking how this acquisition moves Oracle into the relatively unfamiliar Sun hardware market. Its a low-margin business that can drag the company down. And many former hardware partners may now become competitors. Technologies like virtualization and cloud computing from HP, IBM, CISCO and RedHat are making large Sun Solaris systems less relevant nowadays. Oracle, which has largely built its technology on top Java software, simply did not want to see Java's creator fall into the hands of a powerful rival like IBM.

Oracle Chief Executive Larry Ellison said during a conference call: "Java is the single most important software we've ever acquired, With the acquisition of Sun, Oracle is now able to make all of the pieces of the technology stack fit together and work well."

Oracle's internet moves have always improved the bottom line, but they have not made engineering advances a priority in open source world. A good article that talks about the organization benefits that Oracle adds with the merger of MySQL can be found here. Its the biggest bet Oracle has ever made on the web, let's hope the innovative spirit of MySQL and SUN is not hindered by the Redwood Shore suites.

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This Saturday I had the opportunity to see a band that I last saw in NYC in 1994, I had tickets to see "They Might Be Giants" in Princeton, NJ it was a great show I still loved the oldies.