BLOG STARTUPS, VENTURE AND THE TECH BUSINESS
November 24 2009
by Scott Johnson
- Tagged under
- Entrepreneurs
- Information Technology
Is the EU actually right about something?
> Update on 11/30. I spoke to several of my companies, and learned that MySQL from Sun is not something they can’t live without. They would prefer Oracle didn’t own it, but the premise that Oracle will harm startups as an owner of MySQL is not true. The argument that Sun/MySQL is the preferred vendor for mid/larger enterprise, and hence hard to replace in larger IT departments, is valid however and hence the argument that the EU has a good argument, that Sun/MySQL is the only widely accepted open source alternative to proprietary RDBMS is valid.
(original post)
I really hope Oracle is not permitted to buy Sun. MySQL is a drain on Oracle’s revenues, and Oracle is seeing some some very unpleasant writing on the wall, and is shelling out serious cash to control the threat. If I were Oracle I would be worried. But make no mistake – consumers will be harmed here. MySQL puts the “M” in the LAMP stack, and granting control of any component of that stack to Oracle, IBM or MSFT is bad for consumers. That stack is THE way web applications get built on a shoe string. Bought an Oracle RDBMS recently? Did Larry Ellison accept a shoe string as payment? I thought not.
The US antitrust folks argue as follows (from a statement issued Sunday):
“There are many open-source and proprietary database competitors. The Division concluded, based on the specific facts at issue in the transaction, that consumer harm is unlikely because customers would continue to have choices from a variety of well established and widely accepted database products. The Department also concluded that there is a large community of developers and users of Sun’s open source database with significant expertise in maintaining and improving the software, and who could support a derivative version of it.”
The problem is that regulators look at revenues to determine market share and MySQL has low revenue, so the put-together doesn’t come close to any of their triggers. Technically the DOJ is likely right – that there is no antitrust violation according to US law. But to say consumer harm is unlikely feels hopelessly naïve. MySQL is the only real way to avoid the Oracle/DB2 tax on Unix servers. So, while I see most of the decisions and fines by the EU as thinly veiled efforts to stick it to successful US companies, in this case I think their POV is actually quite enlightened.

COMMENTS
November 24 2009
by someone who writes code
Anyone who’s built an app ‘on a shoestring’, doesn’t care about Sun/MySQL (the company). We care about MySQL (the open source project). That’s what puts the M in LAMP and it’s a very mature project which will continue along whether Oracle likes it or not. And we don’t even care that much it because PostgreSQL is better in many respects anyway.
The only consumers this could potentially hurt are people who need MySQL support and services from MySQL (the company). But there’s already an ecosystem of companies not named Sun/MySQL doing this. Percona, for example, has created a great business; they arguably have built up more mindshare and goodwill in the tech community than Sun/MySQL.
November 24 2009
by Tarun Upadhyay
Scott,
Just because Oracle buys MySQL – the company does not mean they control MySQL – the software.
As soon as they try to control or restrict mysql – community will fork it and continue a free version in parallel (hint: look at redhat).
that is what is so great about open source. oracle has not even an iota more control over mysql after buying then they had on it before buying.
You are, however, correct in assuming that Oracle’s days are numbered. And they should be. That company has not done anything innovative since Oracle 8 days…
Cheers.
Tarun
http://tarun.me
November 25 2009
by Scott Johnson
All true – comments appreciated. Yet, with all of these great alternatives to Sun’s version out there, the companies I invest in have chosen Sun/MySQL as Sun has achieved board-room and developer comfort and mindshare beyond all others. Further, MySQL the company is the only real threat to Oracle at present. So the premise that the EU is right in thinking the purchase is anti-competitive holds well.
November 25 2009
by NewAtlanticVentures
From the NAV Blog: Is the EU actually right about something? http://bit.ly/8odIlB