By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
TechgoonduTechgoonduTechgoondu
  • Audio-visual
  • Enterprise
    • Software
    • Cybersecurity
  • Gaming
  • Imaging
  • Internet
  • Media
  • Mobile
    • Cellphones
    • Tablets
  • PC
  • Telecom
Search
© 2023 Goondu Media Pte Ltd. All Rights Reserved.
Reading: Oracle-Sun Deal Hits EU Wall
Share
Font ResizerAa
TechgoonduTechgoondu
Font ResizerAa
  • Audio-visual
  • Enterprise
  • Gaming
  • Imaging
  • Internet
  • Media
  • Mobile
  • PC
  • Telecom
Search
  • Audio-visual
  • Enterprise
    • Software
    • Cybersecurity
  • Gaming
  • Imaging
  • Internet
  • Media
  • Mobile
    • Cellphones
    • Tablets
  • PC
  • Telecom
Follow US
© 2023 Goondu Media Pte Ltd. All Rights Reserved.
Techgoondu > Blog > Enterprise > Oracle-Sun Deal Hits EU Wall
EnterpriseSoftware

Oracle-Sun Deal Hits EU Wall

Aaron Tan
Last updated: September 10, 2009 at 1:48 PM
Aaron Tan
Published: September 8, 2009
3 Min Read

Last week, the European Commission announced that it will launch an in-depth investigation under the EU Merger Regulation over Oracle’s impending acquisition of Sun Microsystems. The controversial move, which has caused a stir among industry watchers, could potentially derail the deal.

Already, IBM and HP have been riding on the uncertainty over the Oracle-Sun deal with campaigns to win over Sun customers. Their efforts are bearing fruit: Sun’s second quarter server revenues falling 37 percent to US$981 million compared to a year ago – the steepest decline among major vendors according to market numbers from analyst company IDC.

The rationale for the EC’s investigation stems from its initial market investigation, which “indicated that the proposed acquisition would raise serious doubts as to its compatibility with the [EU] Single Market because of competition concerns on the market for databases.”

The EC further noted that the deal would bring together two major competitors in the market for databases: “The database market is highly concentrated with the three main competitors of proprietary databases – Oracle, IBM and Microsoft – controlling approximately 85% of the market in terms of revenue. Oracle is the market leader in proprietary databases, while Sun’s MySQL database product is the leading open source database.”

It is puzzling how the EC came to this conclusion. It is widely known that Oracle and MySQL are targeting different segments of the database market. In an April 2009 interview with Forbes magazine, Marten Mickos, MySQL’s former chief, noted that MySQL works for Web-based applications, while Oracle is for older, legacy applications. MySQL has been growing like crazy and that hasn’t hurt Oracle, he said.

While it is the role of regulators to ensure competition and address antitrust concerns from market players, the EC needs to understand the market they are regulating. Clearly, EU regulators do not understand open source. Even if Oracle wanted to kill MySQL as an open source product, it wouldn’t be able to because no single person or company can own or control MySQL’s GPL-licensed source code or stifle its distribution and use. The EC, however, insists that its investigation has shown that “the open source nature of Sun’s MySQL might not eliminate fully the potential for anti-competitive effects”.

Just who the EC is protecting right now is unclear. With the success of the poaching efforts by Sun’s rivals, let’s hope the EC will act in the interest of Sun’s customers when it makes its final decision next January.

In Singapore, small companies risk falling afoul of data protection laws
HTC Flyer priced at a “promotional” S$899 in Singapore
Intel’s Atom-based NUC takes aim at thin clients
First tap-and-pay services emerge in Singapore, but issues remain
Lenovo ThinkCentre M92p serves up full desktop power in minuscule box

Sign up for the TG newsletter

Never miss anything again. Get the latest news and analysis in your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Whatsapp Whatsapp LinkedIn Copy Link Print
Previous Article Commentary: Is a SingTel-StarHub joint BPL bid still on?
Next Article Good deals at Comex 2009 – a Techgoondu guide
1 Comment

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected

FacebookLike
XFollow

Latest News

In search of fairer deal for content creators, Cloudflare blocks AI scrapers
Internet Media
July 3, 2025
Samsung The Frame Pro (2025) review: Appealing design, excellent images
Audio-visual
July 1, 2025
AWS opens Asia-Pacific innovation hub in Singapore
Enterprise
June 30, 2025
Red Hat pitches open-source software for more efficient AI inference
Enterprise Software
June 27, 2025

Techgoondu.com is published by Goondu Media Pte Ltd, a company registered and based in Singapore.

.

Started in June 2008 by technology journalists and ex-journalists in Singapore who share a common love for all things geeky and digital, the site now includes segments on personal computing, enterprise IT and Internet culture.

banner banner
Everyday DIY
PC needs fixing? Get your hands on with the latest tech tips
READ ON
banner banner
Leaders Q&A
What tomorrow looks like to those at the leading edge today
FIND OUT
banner banner
Advertise with us
Discover unique access and impact with TG custom content
SHOW ME

 

 

POWERED BY READYSPACE
The Techgoondu website is powered by and managed by Readyspace Web Hosting.

TechgoonduTechgoondu
© 2024 Goondu Media Pte Ltd. All Rights Reserved | Privacy | Terms of Use | Advertise | About Us | Contact
Follow Us!
Never miss anything again. Get the latest news and analysis in your inbox.

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?