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A recent pitch from the folks opposing Oracle’s ownership of MySQL via acquisition of Sun Microsystems got me thinking. The plea, ‘Oracle can have Sun, but not MySQL’ may make sense to some, but to me it speaks to the irony of closing out Oracle or any company or anyone from open source. Upon further reflection and given 2010 is off to a roaring pace of M&A, I also began to wonder what the impact of the ‘Save MySQL’ campaign could be on open source in M&A, particularly if it was to successfully derail the acquisition or somehow decouple MySQL from Sun under Oracle?

What would it mean to carve out the open source projects, components, teams and support from companies involved in mergers and acquisitions over the last few years?

Would Citrix have still bought XenSource if Xen were cut out or somehow separated in any way shape or form from the deal? Would it have paid $500m?

Would Nokia have bought Trolltech and Qt for $153m?

More recently, would VMware have purchsed SpringSource for $420m if some or any of SpringSource’s open source projects, developers or holdings — including its own acquisitions Covalent and Hyperic — were not included?

Oh yeah, would we even be here with MySQL owned by Sun Microsystems if Sun were prevented from fully acquiring the project, code and company despite spending $1 billion two years ago?

Some degree of concern about Oracle’s potential ownership of MySQL or any ownership of open source projects and code is certainly warrented and prudent, but I don’t believe the fear that punctuates the message of the ‘Save MySQL’ campaign makes much sense. This is particularly so in light of the past deals listed here and others where the market has required continued investment and support of open source and provided continued revenue and benefits from open source.

While some of these scenarios may be admittedly implausible, I believe that separating out open source components, parts, projects and subsidiaries from vendors could certainly serve to dull the shine of open source software assets and vendors amid M&A valuations, prospects and strategy.

PlanetMySQL Voting: Vote UP / Vote DOWN

Since the European Commission announced it was opening an in-depth investigation into the proposed takeover of Sun Microsystems by Oracle with a focus on MySQL there has been no shortage of opinion written about Oracle’s impending ownership of MySQL and its impact on MySQL users and commercial partners, as well as MySQL’s business model, dual licensing and the GPL.

In order to try and bring some order to the conversation, we have brought together some of the most referenced blog posts and news stories in chronological order.

Part one took us from the announcement of the EC’s in-depth investigation up to the eve of the communication of the EC’s Statement of Objections.

Part two took us from there to the eve of the announcement of Oracle’s concessions.

We will continue to update part three, below, until either the acquisition or the EC’s investigation closes.

December 14: Oracle - Oracle Makes Commitments to Customers, Developers and Users of MySQL
“Oracle has engaged in constructive discussions with the European Commission regarding the concerns expressed by the Commission about the Oracle/Sun Microsystems transaction, and in particular the maintenance of MySQL as a competitive force in the database market. In order further to reassure the Commission, Oracle hereby publicly commits to the following…”

December 14: Commission welcomes Oracle’s MySQL announcement
“Today’s announcement by Oracle of a series of undertakings to customers, developers and users of MySQL is an important new element to be taken into account in the ongoing proceedings. In particular, Oracle’s binding contractual undertakings to storage engine vendors regarding copyright non-assertion and the extension over a period of up to 5 years of the terms and conditions of existing commercial licenses are significant new facts. In this context, Competition Commissioner Neelie Kroes recalls and confirms her statement of 9 December 2009 that she is optimistic that the case will have a satisfactory outcome.”

December 14: Jeremy Zawodny - Trust Oracle? Why?
“Back a few years ago when Oracle dismissing MySQL in public while working hard against it in private, I realized that they were simply trying everything they could to protect their crowned jewels: public denials and classic FUD paired with hush-hugh backroom deals. Nobody has managed to explain, in even a mildly convincing way, what has changed since then. Why should we suddenly trust Oracle? Their crowned jewels are still threatened by MySQL.”

December 14: BusinessWeek - How Oracle Disarmed EU Critics
“The most influential provision in assuaging regulators’ concerns about the proposed acquisition may be one of the least noticed. Amid Oracle’s commitments was a pledge to let other technology vendors continue licensing MySQL for use in their products for another five years.”

December 15: Henrik Ingo - We scared Oracle a little, but their promises for MySQL are mostly an insult to the Commission
“5 years, or any amount of years, as a limit to such assurances is not satisfactory and customers and partners would immediately loose interest in MySQL with this promise. The only workable solution has to be perpetual and irrevocable promises.”

December 15: Stephen O’Grady - Oracle, MySQL and the EU: The Endgame Q&A
“Remember June of 2008? Oracle hiked its prices by 15-20% with no detectible impact to its volume. If MySQL was a real, substantial alternative, wouldn’t we have seen wholesale migrations away from Oracle to MySQL? That we didn’t, and continue not to, tells me they’re two different markets.”

December 16: Sheeri Cabral - A MySQL Community Member Opinion of Oracle Buying Sun
“The FUD about Oracle slowing development MySQL are not valid, and not true. The motivations behind those spreading this FUD are monetary and selfish. As a community member, I have seen Oracle put plenty of time, money and effort into developing InnoDB. I look forward to even more of Oracle’s resources being used to develop MySQL further.”

December 16: Monty Widenius - Oracle gives only empty promises for MySQL
“Oracle is trying to win the case through press releases and public pressure instead of really eliminating the European Commission’s concerns. They show no respect for the European authorities or how we do things here. Oracle just want to dictate their own terms and expect us to accept them on face value.”

December 17: AP - Oracle expects EU to approve Sun deal next month
“Oracle’s president, Safra Catz, said in a statement Thursday that the company now expects that European regulators will “unconditionally” approve the Sun acquisition in January.”

December 28: Monty Widenius - Help keep the Internet free
Monty Widenius launches his petition to help save MySQL by claiming (amongst other things) that “It’s not in the Internet users interest that one key piece of the net would be owned by an entity that has more to gain by severely limiting and in the long run even killing it as an open source product than by keeping it alive.”

December 29: Mark Callaghan - Save MySQL, save the world
“MPAB continues to drive away potential supporters with the tone of their messages, the inclusion of pointless assertions, and the complete lack of references.”

December 29: Sheeri Cabral - Save MySQL by letting Oracle keep it GPL
“I cannot say whether or not Oracle would kill MySQL. However, I have already stated I believe Oracle will not kill MySQL. This is based on the fact that Oracle has had the chance to kill MySQL for several years, by making InnoDB proprietary, and has not.”

January 3: David Nielsen - Why “helping MySQL” reflects poorly on us all
“This has nothing to do with the software’s freedom status and given the FSF’s behavior as well as argumentation throughout recent years, the entirety of the inherent freedoms remain intact even when forking the existing codebase, meaning that this is entirely about the right to make money from proprietary use cases of the code.”

PlanetMySQL Voting: Vote UP / Vote DOWN

Topics for this podcast:

*2009 review and 2010 preview
*New CAOS survey and report – Climate Change
*Ups and downs in new round of GPL lawsuits
*Oracle-Sun-MySQL saga continues

iTunes or direct download (30:00, 6.9 MB)

PlanetMySQL Voting: Vote UP / Vote DOWN

Since the European Commission announced it was opening an in-depth investigation into the proposed takeover of Sun Microsystems by Oracle with a focus on MySQL there has been no shortage of opinion written about Oracle’s impending ownership of MySQL and its impact on MySQL users and commercial partners, as well as MySQL’s business model, dual licensing and the GPL.

In order to try and bring some order to the conversation, we have brought together some of the most referenced blog posts and news stories in chronological order. We will continue to update this post until either the acquisition or the EC’s investigation closes.

September 3: The European Commission announces that it has opened in-depth investigation into proposed takeover of Sun Microsystems by Oracle with a focus on MySQL.
“The Commission’s investigation has also shown that the open source nature of Sun’s MySQL might not eliminate fully the potential for anti-competitive effects. In its in-depth investigation, the Commission will therefore address a number of issues, including Oracle’s incentive to further develop MySQL as an open source database.”

September 4: 451 CAOS Theory - The EC is mostly, but not entirely, wrong about Oracle/MySQL.
“Copyright ownership does not just impact the ability to license code, it also provides control over potential commercial uses of that code. This is where it could be argued that the EC could be right to have anti-competitive concerns over Oracle’s future ownership of MySQL.”

September 4: Monty Program Ab Chief Community and Communications Officer Kurt von Finck tells Ars Technica that that copyright and dual licensing is a significant concern.
“If Oracle were to release MySQL under a different license, say the Apache license, this issue would be mitigated to an extent. But for now, Oracle has many more avenues of [MySQL-related] business and revenue than do others.”

September 15 451 CAOS Theory - Oracle *could* kill off MySQL as a commercial product, but probably won’t
“It is impossible to create a fork that can be integrated with non-GPL code (or at least it appears to be.)”

September 17: Bill Schneider - Would MySQL survive without Oracle?
“MySQL is almost impossible to be monetized. More than 98 percent of the customer base is DIY, and they don’t see any value in paying for support.”

September 22: Oracle CEO Larry Ellison reportedly says Oracle will not spin off MySQL.
“Ellison asserted that Oracle and MySQL do not compete - and he said Oracle has no intention of spinning off MySQL.”

September 30: The Wall Street Journal reported that documents indicate that Oracle intends to use MySQL to compete with Microsoft SQL Server.
“Oracle’s position is that in the market for small to medium-sized business databases, Sun’s MySQL database product, enables the company to compete against Microsoft.”

October 1: Matt Asay reiterates that MySQL’s value to Oracle is about competing with Microsoft.
“Open source is simply a means to an end, and in the case of MySQL, a means to denting Microsoft’s rising strength in emerging markets where Oracle’s expensive database technology doesn’t resonate.”

October 1: Carlo Piana explains why he is assisting Oracle’s legal team to get the acquisition approved.
“It must be passed through as soon as possible, or the company will die. And with it, some of the good development teams that have considerably contributed to the success of Free Software.”

October 8: Former MySQL CEO Marten Mickos urges the EC to approve Oracle’s acquisition of Sun.
“I believe that Oracle’s acquisition of Sun (and MySQL) will increase competition in the database market. And I also believe that if, on the other hand, it becomes difficult or impossible for large companies to acquire open-source assets, then venture investments in open-source companies will slow down, harming the evolution of and innovation in open source, which would result in decreased competition.”

October 11: Oracle CEO Larry Ellison reportedly says Oracle will invest in MySQL.
“He added a new line to the previously four-point list, this one promising MySQL would also receive more money for development and research.”

October 19: MySQL creator and Monty Program CEO Monty Widenius urged Oracle to give up on MySQL in order to land Sun.
“MySQL needs a different home than Oracle, a home where there will be no conflicts of interest concerning how, or if, MySQL should be developed further.”

October 19: Richard Stallman, Knowledge Ecology International (KEI) and the Open Rights Group sent a letter to the EC urging it to block Oracle’s acquisition of MySQL.
“If Oracle is allowed to acquire MySQL, it will predictably limit the development of the functionality and performance of the MySQL software platform, leading to profound harm to those who use MySQL software to power applications.”

October 19: Matt Asay argued that EU’s MySQL inquiry may backfire for open source.
“Why should commercial entities bother fostering community–the very community that makes them less susceptible to hostile takeover and anticompetitive forces–if doing so simply ends up ruining financial returns?”

October 20: Matt Asay and Simon Phipps note Stallman’s apparent admission that the GPL alone doesn’t guarantee software freedom.
“The GPL, which is supposed to be the ultimate guarantor of software freedom, may deliver the opposite.”

October 20: Sun Microsystems announced that it will lay off up to 3,000 people.
“The Board of Directors of Sun Microsystems, Inc. (the “Company”), in light of the delay in the closing of the acquisition of the Company, approved a plan to better align the Company’s resources with its strategic business objectives.”

October 20: 451 CAOS Theory - Closing Oracle out of open source?
“Although it might not be tasteful to all supporters of free and open source software, their very mantras and doctrines dictate their software and communities are open to all equally. Anything less is a contradiction of the core ideology of free and open source software.”

October 20: Carlo Piana - Apache what?
“I don’t see any suitable prospect investor which would be able both to pay the bill for this and to safeguard MySQL as Free Software more than Oracle is.”

October 21: 451 CAOS Theory - What about Woman’s Hour? Free speech, free markets and the future of MySQL
“The only possible argument in favour of the EC blocking Oracle’s acquisition of MySQL is that it is damaging to competition, not that it is damaging to MySQL itself. Otherwise we are asking the EC to rule on whether Oracle is open source-friendly enough to own MySQL, and that is neither something that an organisation like the EC is equipped to answer nor something that it should be asked to decide.”

October 21: Groklaw - Reasons I Believe the Community Should Support the Oracle-Sun Deal
“The most important reason is that opponents are trashing the GPL and calling it a source of “infection” in their FUD submission to the EU Commission.”

October 21: Kirk Wylie - Monty, Stallman, MySQL, Oracle, and Sun: Open Letter Wars
“Unfortunately, saying that you personally dislike something doesn’t provide a valid reason to block an acquisition on competition grounds. Saying that you don’t trust Oracle doesn’t alter the marketplace in a way that disadvantages customers as a whole. Saying that nobody else could make money by selling commercial licenses for MySQL doesn’t mean someone else must be allowed to.”

October 21: An EC spokesperson told The BBC that Oracle has not produced any evidence to ease its concerns.
“Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission.”

October 21: Tim Bray - The EU and MySQL
“If, in a merger or acquisition, partial control over a financially-insignificant Open-Source project can now be expected to result in many months of anti-trust review, that’s going to have a massive negative effect on the viability of M&A transactions all over the technology landscape.”

October 21: Jeremy Zawodny - Oracle and MySQL
“I haven’t yet seen anyone explain what motivation Oracle has for pouring resources into MySQL, especially if it eats away at their DBMS business on the low end.”

October 22: Ed Burnette - Stallman admits GPL flawed, proprietary licensing needed to pay for MySQL development
“Even if MySQL were owned by Oracle because of its purchase of Sun, the database would still be Free Software. Anyone could use the source code, build their own version, and distribute it to others. But finally Stallman has recognized that may not be good enough because somebody has to pay for this stuff.”

October 22: Brian “Krow” Aker - RMS, GPL, The Peculiar Institution of Dual Licensing
“Dual licensing forces any developer who wishes to contribute into a position of either giving up their rights and allowing their work to end up in commercial software, or creating a fork of the software with their changes. In essence it creates monopolies which can only be broken via forking the software.”

October 23: Stephen O’Grady - Oracle, MySQL and the EU: The Q&A
“Given that Oracle has a negligible presence in the markets that Microsoft has been successful in, then, I think they’ll be the primary target. Meaning that competition shouldn’t be much of an issue.”

October 23: Karsten Garloff - The case for independence - Oracle, Sun and what to do with MySQL
“The present danger for MySQL shows how dependence on a single company (brought about by a dual-licensing strategy) puts even the most successful projects at risk.”

October 24: Monty Widenius - The importance of the license model of MySQL or Can MySQL be killed?
“It’s possible to create companies doing support for MySQL, but without the economics, there will not be enough money and incentive to pay enough for the development of MySQL to satisfy the requirement of all the MySQL users.”

October 24: JavaWorld - Who Should Oracle Sell MySQL To?
“It’s easy to suggest that Oracle should sell to a “suitable third party?” That’s just talk. The potentially significantly more difficult thing might be to actually find a buyer that meets the definition of “suitable” to all involved.”

October 25: Sacha Labourey - SUN vs./and ORCL: the failure of the dual licensing model?
“Some of the ex-MySQL co-founders who now ask for ORCL to let MySQL go are responsible for the current situation: their choice of a dual license business model years ago is what led to the current situation … but also what led MySQL to a 1B valuation. You cannot have it both ways I guess.”

PlanetMySQL Voting: Vote UP / Vote DOWN

Since the European Commission announced it was opening an in-depth investigation into the proposed takeover of Sun Microsystems by Oracle with a focus on MySQL there has been no shortage of opinion written about Oracle’s impending ownership of MySQL and its impact on MySQL users and commercial partners, as well as MySQL’s business model, dual licensing and the GPL.

In order to try and bring some order to the conversation, we have brought together some of the most referenced blog posts and news stories in chronological order. We will continue to update this post until either the acquisition or the EC’s investigation closes.

September 3: The European Commission announces that it has opened in-depth investigation into proposed takeover of Sun Microsystems by Oracle with a focus on MySQL.
“The Commission’s investigation has also shown that the open source nature of Sun’s MySQL might not eliminate fully the potential for anti-competitive effects. In its in-depth investigation, the Commission will therefore address a number of issues, including Oracle’s incentive to further develop MySQL as an open source database.”

September 4: 451 CAOS Theory - The EC is mostly, but not entirely, wrong about Oracle/MySQL.
“Copyright ownership does not just impact the ability to license code, it also provides control over potential commercial uses of that code. This is where it could be argued that the EC could be right to have anti-competitive concerns over Oracle’s future ownership of MySQL.”

September 4: Monty Program Ab Chief Community and Communications Officer Kurt von Finck tells Ars Technica that that copyright and dual licensing is a significant concern.
“If Oracle were to release MySQL under a different license, say the Apache license, this issue would be mitigated to an extent. But for now, Oracle has many more avenues of [MySQL-related] business and revenue than do others.”

September 15 451 CAOS Theory - Oracle *could* kill off MySQL as a commercial product, but probably won’t
“It is impossible to create a fork that can be integrated with non-GPL code (or at least it appears to be.)”

September 17: Bill Schneider - Would MySQL survive without Oracle?
“MySQL is almost impossible to be monetized. More than 98 percent of the customer base is DIY, and they don’t see any value in paying for support.”

September 22: Oracle CEO Larry Ellison reportedly says Oracle will not spin off MySQL.
“Ellison asserted that Oracle and MySQL do not compete - and he said Oracle has no intention of spinning off MySQL.”

September 30: The Wall Street Journal reported that documents indicate that Oracle intends to use MySQL to compete with Microsoft SQL Server.
“Oracle’s position is that in the market for small to medium-sized business databases, Sun’s MySQL database product, enables the company to compete against Microsoft.”

October 1: Matt Asay reiterates that MySQL’s value to Oracle is about competing with Microsoft.
“Open source is simply a means to an end, and in the case of MySQL, a means to denting Microsoft’s rising strength in emerging markets where Oracle’s expensive database technology doesn’t resonate.”

October 1: Carlo Piana explains why he is assisting Oracle’s legal team to get the acquisition approved.
“It must be passed through as soon as possible, or the company will die. And with it, some of the good development teams that have considerably contributed to the success of Free Software.”

October 8: Former MySQL CEO Marten Mickos urges the EC to approve Oracle’s acquisition of Sun.
“I believe that Oracle’s acquisition of Sun (and MySQL) will increase competition in the database market. And I also believe that if, on the other hand, it becomes difficult or impossible for large companies to acquire open-source assets, then venture investments in open-source companies will slow down, harming the evolution of and innovation in open source, which would result in decreased competition.”

October 11: Oracle CEO Larry Ellison reportedly says Oracle will invest in MySQL.
“He added a new line to the previously four-point list, this one promising MySQL would also receive more money for development and research.”

October 19: MySQL creator and Monty Program CEO Monty Widenius urged Oracle to give up on MySQL in order to land Sun.
“MySQL needs a different home than Oracle, a home where there will be no conflicts of interest concerning how, or if, MySQL should be developed further.”

October 19: Richard Stallman, Knowledge Ecology International (KEI) and the Open Rights Group sent a letter to the EC urging it to block Oracle’s acquisition of MySQL.
“If Oracle is allowed to acquire MySQL, it will predictably limit the development of the functionality and performance of the MySQL software platform, leading to profound harm to those who use MySQL software to power applications.”

October 19: Matt Asay argued that EU’s MySQL inquiry may backfire for open source.
“Why should commercial entities bother fostering community–the very community that makes them less susceptible to hostile takeover and anticompetitive forces–if doing so simply ends up ruining financial returns?”

October 20: Matt Asay and Simon Phipps note Stallman’s apparent admission that the GPL alone doesn’t guarantee software freedom.
“The GPL, which is supposed to be the ultimate guarantor of software freedom, may deliver the opposite.”

October 20: Sun Microsystems announced that it will lay off up to 3,000 people.
“The Board of Directors of Sun Microsystems, Inc. (the “Company”), in light of the delay in the closing of the acquisition of the Company, approved a plan to better align the Company’s resources with its strategic business objectives.”

October 20: 451 CAOS Theory - Closing Oracle out of open source?
“Although it might not be tasteful to all supporters of free and open source software, their very mantras and doctrines dictate their software and communities are open to all equally. Anything less is a contradiction of the core ideology of free and open source software.”

October 20: Carlo Piana - Apache what?
“I don’t see any suitable prospect investor which would be able both to pay the bill for this and to safeguard MySQL as Free Software more than Oracle is.”

October 21: 451 CAOS Theory - What about Woman’s Hour? Free speech, free markets and the future of MySQL
“The only possible argument in favour of the EC blocking Oracle’s acquisition of MySQL is that it is damaging to competition, not that it is damaging to MySQL itself. Otherwise we are asking the EC to rule on whether Oracle is open source-friendly enough to own MySQL, and that is neither something that an organisation like the EC is equipped to answer nor something that it should be asked to decide.”

October 21: Groklaw - Reasons I Believe the Community Should Support the Oracle-Sun Deal
“The most important reason is that opponents are trashing the GPL and calling it a source of “infection” in their FUD submission to the EU Commission.”

October 21: Kirk Wylie - Monty, Stallman, MySQL, Oracle, and Sun: Open Letter Wars
“Unfortunately, saying that you personally dislike something doesn’t provide a valid reason to block an acquisition on competition grounds. Saying that you don’t trust Oracle doesn’t alter the marketplace in a way that disadvantages customers as a whole. Saying that nobody else could make money by selling commercial licenses for MySQL doesn’t mean someone else must be allowed to.”

October 21: An EC spokesperson told The BBC that Oracle has not produced any evidence to ease its concerns.
“Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission.”

October 21: Tim Bray - The EU and MySQL
“If, in a merger or acquisition, partial control over a financially-insignificant Open-Source project can now be expected to result in many months of anti-trust review, that’s going to have a massive negative effect on the viability of M&A transactions all over the technology landscape.”

October 21: Jeremy Zawodny - Oracle and MySQL
“I haven’t yet seen anyone explain what motivation Oracle has for pouring resources into MySQL, especially if it eats away at their DBMS business on the low end.”

October 22: Ed Burnette - Stallman admits GPL flawed, proprietary licensing needed to pay for MySQL development
“Even if MySQL were owned by Oracle because of its purchase of Sun, the database would still be Free Software. Anyone could use the source code, build their own version, and distribute it to others. But finally Stallman has recognized that may not be good enough because somebody has to pay for this stuff.”

October 22: Brian “Krow” Aker - RMS, GPL, The Peculiar Institution of Dual Licensing
“Dual licensing forces any developer who wishes to contribute into a position of either giving up their rights and allowing their work to end up in commercial software, or creating a fork of the software with their changes. In essence it creates monopolies which can only be broken via forking the software.”

October 23: Stephen O’Grady - Oracle, MySQL and the EU: The Q&A
“Given that Oracle has a negligible presence in the markets that Microsoft has been successful in, then, I think they’ll be the primary target. Meaning that competition shouldn’t be much of an issue.”

October 23: Karsten Garloff - The case for independence - Oracle, Sun and what to do with MySQL
“The present danger for MySQL shows how dependence on a single company (brought about by a dual-licensing strategy) puts even the most successful projects at risk.”

October 24: Monty Widenius - The importance of the license model of MySQL or Can MySQL be killed?
“It’s possible to create companies doing support for MySQL, but without the economics, there will not be enough money and incentive to pay enough for the development of MySQL to satisfy the requirement of all the MySQL users.”

October 24: JavaWorld - Who Should Oracle Sell MySQL To?
“It’s easy to suggest that Oracle should sell to a “suitable third party?” That’s just talk. The potentially significantly more difficult thing might be to actually find a buyer that meets the definition of “suitable” to all involved.”

October 25: Sacha Labourey - SUN vs./and ORCL: the failure of the dual licensing model?
“Some of the ex-MySQL co-founders who now ask for ORCL to let MySQL go are responsible for the current situation: their choice of a dual license business model years ago is what led to the current situation … but also what led MySQL to a 1B valuation. You cannot have it both ways I guess.”

PlanetMySQL Voting: Vote UP / Vote DOWN

Since the European Commission announced it was opening an in-depth investigation into the proposed takeover of Sun Microsystems by Oracle with a focus on MySQL there has been no shortage of opinion written about Oracle’s impending ownership of MySQL and its impact on MySQL users and commercial partners, as well as MySQL’s business model, dual licensing and the GPL.

In order to try and bring some order to the conversation, we have brought together some of the most referenced blog posts and news stories in chronological order. We will continue to update this post until either the acquisition or the EC’s investigation closes.

September 3: The European Commission announces that it has opened in-depth investigation into proposed takeover of Sun Microsystems by Oracle with a focus on MySQL.
“The Commission’s investigation has also shown that the open source nature of Sun’s MySQL might not eliminate fully the potential for anti-competitive effects. In its in-depth investigation, the Commission will therefore address a number of issues, including Oracle’s incentive to further develop MySQL as an open source database.”

September 4: 451 CAOS Theory - The EC is mostly, but not entirely, wrong about Oracle/MySQL.
“Copyright ownership does not just impact the ability to license code, it also provides control over potential commercial uses of that code. This is where it could be argued that the EC could be right to have anti-competitive concerns over Oracle’s future ownership of MySQL.”

September 4: Monty Program Ab Chief Community and Communications Officer Kurt von Finck tells Ars Technica that that copyright and dual licensing is a significant concern.
“If Oracle were to release MySQL under a different license, say the Apache license, this issue would be mitigated to an extent. But for now, Oracle has many more avenues of [MySQL-related] business and revenue than do others.”

September 15 451 CAOS Theory - Oracle *could* kill off MySQL as a commercial product, but probably won’t
“It is impossible to create a fork that can be integrated with non-GPL code (or at least it appears to be.)”

September 17: Bill Schneider - Would MySQL survive without Oracle?
“MySQL is almost impossible to be monetized. More than 98 percent of the customer base is DIY, and they don’t see any value in paying for support.”

September 22: Oracle CEO Larry Ellison reportedly says Oracle will not spin off MySQL.
“Ellison asserted that Oracle and MySQL do not compete - and he said Oracle has no intention of spinning off MySQL.”

September 30: The Wall Street Journal reported that documents indicate that Oracle intends to use MySQL to compete with Microsoft SQL Server.
“Oracle’s position is that in the market for small to medium-sized business databases, Sun’s MySQL database product, enables the company to compete against Microsoft.”

October 1: Matt Asay reiterates that MySQL’s value to Oracle is about competing with Microsoft.
“Open source is simply a means to an end, and in the case of MySQL, a means to denting Microsoft’s rising strength in emerging markets where Oracle’s expensive database technology doesn’t resonate.”

October 1: Carlo Piana explains why he is assisting Oracle’s legal team to get the acquisition approved.
“It must be passed through as soon as possible, or the company will die. And with it, some of the good development teams that have considerably contributed to the success of Free Software.”

October 8: Former MySQL CEO Marten Mickos urges the EC to approve Oracle’s acquisition of Sun.
“I believe that Oracle’s acquisition of Sun (and MySQL) will increase competition in the database market. And I also believe that if, on the other hand, it becomes difficult or impossible for large companies to acquire open-source assets, then venture investments in open-source companies will slow down, harming the evolution of and innovation in open source, which would result in decreased competition.”

October 11: Oracle CEO Larry Ellison reportedly says Oracle will invest in MySQL.
“He added a new line to the previously four-point list, this one promising MySQL would also receive more money for development and research.”

October 19: MySQL creator and Monty Program CEO Monty Widenius urged Oracle to give up on MySQL in order to land Sun.
“MySQL needs a different home than Oracle, a home where there will be no conflicts of interest concerning how, or if, MySQL should be developed further.”

October 19: Richard Stallman, Knowledge Ecology International (KEI) and the Open Rights Group sent a letter to the EC urging it to block Oracle’s acquisition of MySQL.
“If Oracle is allowed to acquire MySQL, it will predictably limit the development of the functionality and performance of the MySQL software platform, leading to profound harm to those who use MySQL software to power applications.”

October 19: Matt Asay argued that EU’s MySQL inquiry may backfire for open source.
“Why should commercial entities bother fostering community–the very community that makes them less susceptible to hostile takeover and anticompetitive forces–if doing so simply ends up ruining financial returns?”

October 20: Matt Asay and Simon Phipps note Stallman’s apparent admission that the GPL alone doesn’t guarantee software freedom.
“The GPL, which is supposed to be the ultimate guarantor of software freedom, may deliver the opposite.”

October 20: Sun Microsystems announced that it will lay off up to 3,000 people.
“The Board of Directors of Sun Microsystems, Inc. (the “Company”), in light of the delay in the closing of the acquisition of the Company, approved a plan to better align the Company’s resources with its strategic business objectives.”

October 20: 451 CAOS Theory - Closing Oracle out of open source?
“Although it might not be tasteful to all supporters of free and open source software, their very mantras and doctrines dictate their software and communities are open to all equally. Anything less is a contradiction of the core ideology of free and open source software.”

October 20: Carlo Piana - Apache what?
“I don’t see any suitable prospect investor which would be able both to pay the bill for this and to safeguard MySQL as Free Software more than Oracle is.”

October 21: 451 CAOS Theory - What about Woman’s Hour? Free speech, free markets and the future of MySQL
“The only possible argument in favour of the EC blocking Oracle’s acquisition of MySQL is that it is damaging to competition, not that it is damaging to MySQL itself. Otherwise we are asking the EC to rule on whether Oracle is open source-friendly enough to own MySQL, and that is neither something that an organisation like the EC is equipped to answer nor something that it should be asked to decide.”

October 21: Groklaw - Reasons I Believe the Community Should Support the Oracle-Sun Deal
“The most important reason is that opponents are trashing the GPL and calling it a source of “infection” in their FUD submission to the EU Commission.”

October 21: Kirk Wylie - Monty, Stallman, MySQL, Oracle, and Sun: Open Letter Wars
“Unfortunately, saying that you personally dislike something doesn’t provide a valid reason to block an acquisition on competition grounds. Saying that you don’t trust Oracle doesn’t alter the marketplace in a way that disadvantages customers as a whole. Saying that nobody else could make money by selling commercial licenses for MySQL doesn’t mean someone else must be allowed to.”

October 21: An EC spokesperson told The BBC that Oracle has not produced any evidence to ease its concerns.
“Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission.”

October 21: Tim Bray - The EU and MySQL
“If, in a merger or acquisition, partial control over a financially-insignificant Open-Source project can now be expected to result in many months of anti-trust review, that’s going to have a massive negative effect on the viability of M&A transactions all over the technology landscape.”

October 21: Jeremy Zawodny - Oracle and MySQL
“I haven’t yet seen anyone explain what motivation Oracle has for pouring resources into MySQL, especially if it eats away at their DBMS business on the low end.”

October 22: Ed Burnette - Stallman admits GPL flawed, proprietary licensing needed to pay for MySQL development
“Even if MySQL were owned by Oracle because of its purchase of Sun, the database would still be Free Software. Anyone could use the source code, build their own version, and distribute it to others. But finally Stallman has recognized that may not be good enough because somebody has to pay for this stuff.”

October 22: Brian “Krow” Aker - RMS, GPL, The Peculiar Institution of Dual Licensing
“Dual licensing forces any developer who wishes to contribute into a position of either giving up their rights and allowing their work to end up in commercial software, or creating a fork of the software with their changes. In essence it creates monopolies which can only be broken via forking the software.”

October 23: Stephen O’Grady - Oracle, MySQL and the EU: The Q&A
“Given that Oracle has a negligible presence in the markets that Microsoft has been successful in, then, I think they’ll be the primary target. Meaning that competition shouldn’t be much of an issue.”

October 23: Karsten Garloff - The case for independence - Oracle, Sun and what to do with MySQL
“The present danger for MySQL shows how dependence on a single company (brought about by a dual-licensing strategy) puts even the most successful projects at risk.”

October 24: Monty Widenius - The importance of the license model of MySQL or Can MySQL be killed?
“It’s possible to create companies doing support for MySQL, but without the economics, there will not be enough money and incentive to pay enough for the development of MySQL to satisfy the requirement of all the MySQL users.”

October 24: JavaWorld - Who Should Oracle Sell MySQL To?
“It’s easy to suggest that Oracle should sell to a “suitable third party?” That’s just talk. The potentially significantly more difficult thing might be to actually find a buyer that meets the definition of “suitable” to all involved.”

October 25: Sacha Labourey - SUN vs./and ORCL: the failure of the dual licensing model?
“Some of the ex-MySQL co-founders who now ask for ORCL to let MySQL go are responsible for the current situation: their choice of a dual license business model years ago is what led to the current situation … but also what led MySQL to a 1B valuation. You cannot have it both ways I guess.”

PlanetMySQL Voting: Vote UP / Vote DOWN

Since the European Commission announced it was opening an in-depth investigation into the proposed takeover of Sun Microsystems by Oracle with a focus on MySQL there has been no shortage of opinion written about Oracle’s impending ownership of MySQL and its impact on MySQL users and commercial partners, as well as MySQL’s business model, dual licensing and the GPL.

In order to try and bring some order to the conversation, we have brought together some of the most referenced blog posts and news stories in chronological order. We will continue to update this post until either the acquisition or the EC’s investigation closes.

September 3: The European Commission announces that it has opened in-depth investigation into proposed takeover of Sun Microsystems by Oracle with a focus on MySQL.
“The Commission’s investigation has also shown that the open source nature of Sun’s MySQL might not eliminate fully the potential for anti-competitive effects. In its in-depth investigation, the Commission will therefore address a number of issues, including Oracle’s incentive to further develop MySQL as an open source database.”

September 4: 451 CAOS Theory - The EC is mostly, but not entirely, wrong about Oracle/MySQL.
“Copyright ownership does not just impact the ability to license code, it also provides control over potential commercial uses of that code. This is where it could be argued that the EC could be right to have anti-competitive concerns over Oracle’s future ownership of MySQL.”

September 4: Monty Program Ab Chief Community and Communications Officer Kurt von Finck tells Ars Technica that that copyright and dual licensing is a significant concern.
“If Oracle were to release MySQL under a different license, say the Apache license, this issue would be mitigated to an extent. But for now, Oracle has many more avenues of [MySQL-related] business and revenue than do others.”

September 15 451 CAOS Theory - Oracle *could* kill off MySQL as a commercial product, but probably won’t
“It is impossible to create a fork that can be integrated with non-GPL code (or at least it appears to be.)”

September 17: Bill Schneider - Would MySQL survive without Oracle?
“MySQL is almost impossible to be monetized. More than 98 percent of the customer base is DIY, and they don’t see any value in paying for support.”

September 22: Oracle CEO Larry Ellison reportedly says Oracle will not spin off MySQL.
“Ellison asserted that Oracle and MySQL do not compete - and he said Oracle has no intention of spinning off MySQL.”

September 30: The Wall Street Journal reported that documents indicate that Oracle intends to use MySQL to compete with Microsoft SQL Server.
“Oracle’s position is that in the market for small to medium-sized business databases, Sun’s MySQL database product, enables the company to compete against Microsoft.”

October 1: Matt Asay reiterates that MySQL’s value to Oracle is about competing with Microsoft.
“Open source is simply a means to an end, and in the case of MySQL, a means to denting Microsoft’s rising strength in emerging markets where Oracle’s expensive database technology doesn’t resonate.”

October 1: Carlo Piana explains why he is assisting Oracle’s legal team to get the acquisition approved.
“It must be passed through as soon as possible, or the company will die. And with it, some of the good development teams that have considerably contributed to the success of Free Software.”

October 8: Former MySQL CEO Marten Mickos urges the EC to approve Oracle’s acquisition of Sun.
“I believe that Oracle’s acquisition of Sun (and MySQL) will increase competition in the database market. And I also believe that if, on the other hand, it becomes difficult or impossible for large companies to acquire open-source assets, then venture investments in open-source companies will slow down, harming the evolution of and innovation in open source, which would result in decreased competition.”

October 11: Oracle CEO Larry Ellison reportedly says Oracle will invest in MySQL.
“He added a new line to the previously four-point list, this one promising MySQL would also receive more money for development and research.”

October 19: MySQL creator and Monty Program CEO Monty Widenius urged Oracle to give up on MySQL in order to land Sun.
“MySQL needs a different home than Oracle, a home where there will be no conflicts of interest concerning how, or if, MySQL should be developed further.”

October 19: Richard Stallman, Knowledge Ecology International (KEI) and the Open Rights Group sent a letter to the EC urging it to block Oracle’s acquisition of MySQL.
“If Oracle is allowed to acquire MySQL, it will predictably limit the development of the functionality and performance of the MySQL software platform, leading to profound harm to those who use MySQL software to power applications.”

October 19: Matt Asay argued that EU’s MySQL inquiry may backfire for open source.
“Why should commercial entities bother fostering community–the very community that makes them less susceptible to hostile takeover and anticompetitive forces–if doing so simply ends up ruining financial returns?”

October 20: Matt Asay and Simon Phipps note Stallman’s apparent admission that the GPL alone doesn’t guarantee software freedom.
“The GPL, which is supposed to be the ultimate guarantor of software freedom, may deliver the opposite.”

October 20: Sun Microsystems announced that it will lay off up to 3,000 people.
“The Board of Directors of Sun Microsystems, Inc. (the “Company”), in light of the delay in the closing of the acquisition of the Company, approved a plan to better align the Company’s resources with its strategic business objectives.”

October 20: 451 CAOS Theory - Closing Oracle out of open source?
“Although it might not be tasteful to all supporters of free and open source software, their very mantras and doctrines dictate their software and communities are open to all equally. Anything less is a contradiction of the core ideology of free and open source software.”

October 20: Carlo Piana - Apache what?
“I don’t see any suitable prospect investor which would be able both to pay the bill for this and to safeguard MySQL as Free Software more than Oracle is.”

October 21: 451 CAOS Theory - What about Woman’s Hour? Free speech, free markets and the future of MySQL
“The only possible argument in favour of the EC blocking Oracle’s acquisition of MySQL is that it is damaging to competition, not that it is damaging to MySQL itself. Otherwise we are asking the EC to rule on whether Oracle is open source-friendly enough to own MySQL, and that is neither something that an organisation like the EC is equipped to answer nor something that it should be asked to decide.”

October 21: Groklaw - Reasons I Believe the Community Should Support the Oracle-Sun Deal
“The most important reason is that opponents are trashing the GPL and calling it a source of “infection” in their FUD submission to the EU Commission.”

October 21: Kirk Wylie - Monty, Stallman, MySQL, Oracle, and Sun: Open Letter Wars
“Unfortunately, saying that you personally dislike something doesn’t provide a valid reason to block an acquisition on competition grounds. Saying that you don’t trust Oracle doesn’t alter the marketplace in a way that disadvantages customers as a whole. Saying that nobody else could make money by selling commercial licenses for MySQL doesn’t mean someone else must be allowed to.”

October 21: An EC spokesperson told The BBC that Oracle has not produced any evidence to ease its concerns.
“Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission.”

October 21: Tim Bray - The EU and MySQL
“If, in a merger or acquisition, partial control over a financially-insignificant Open-Source project can now be expected to result in many months of anti-trust review, that’s going to have a massive negative effect on the viability of M&A transactions all over the technology landscape.”

October 21: Jeremy Zawodny - Oracle and MySQL
“I haven’t yet seen anyone explain what motivation Oracle has for pouring resources into MySQL, especially if it eats away at their DBMS business on the low end.”

October 22: Ed Burnette - Stallman admits GPL flawed, proprietary licensing needed to pay for MySQL development
“Even if MySQL were owned by Oracle because of its purchase of Sun, the database would still be Free Software. Anyone could use the source code, build their own version, and distribute it to others. But finally Stallman has recognized that may not be good enough because somebody has to pay for this stuff.”

October 22: Brian “Krow” Aker - RMS, GPL, The Peculiar Institution of Dual Licensing
“Dual licensing forces any developer who wishes to contribute into a position of either giving up their rights and allowing their work to end up in commercial software, or creating a fork of the software with their changes. In essence it creates monopolies which can only be broken via forking the software.”

October 23: Stephen O’Grady - Oracle, MySQL and the EU: The Q&A
“Given that Oracle has a negligible presence in the markets that Microsoft has been successful in, then, I think they’ll be the primary target. Meaning that competition shouldn’t be much of an issue.”

October 23: Karsten Garloff - The case for independence - Oracle, Sun and what to do with MySQL
“The present danger for MySQL shows how dependence on a single company (brought about by a dual-licensing strategy) puts even the most successful projects at risk.”

October 24: Monty Widenius - The importance of the license model of MySQL or Can MySQL be killed?
“It’s possible to create companies doing support for MySQL, but without the economics, there will not be enough money and incentive to pay enough for the development of MySQL to satisfy the requirement of all the MySQL users.”

October 24: JavaWorld - Who Should Oracle Sell MySQL To?
“It’s easy to suggest that Oracle should sell to a “suitable third party?” That’s just talk. The potentially significantly more difficult thing might be to actually find a buyer that meets the definition of “suitable” to all involved.”

October 25: Sacha Labourey - SUN vs./and ORCL: the failure of the dual licensing model?
“Some of the ex-MySQL co-founders who now ask for ORCL to let MySQL go are responsible for the current situation: their choice of a dual license business model years ago is what led to the current situation … but also what led MySQL to a 1B valuation. You cannot have it both ways I guess.”

PlanetMySQL Voting: Vote UP / Vote DOWN

A controversial issue in the UK this week is the BBC’s decision to invite the British National Party - the far-right, whites-only political party - to appear on Question Time, the BBC’s flagship political debate programme.

Critics fear that the move will legitimise the BNP’s far-right views, while the BBC has defended the invitation on the grounds that its role as a politically neutral public service broadcaster would be undermined if it excluded the BNP - which won its first European Parliament seats this year with an estimated million votes.

To me it is clear that no matter how abhorrent the BNP’s policies on certain issues may be the BBC has a duty to invite it to participate as it is a legitimately recognised political party. We live in a society that protects and promotes free speech with the only limit being when the speech in question goes beyond what is deemed to be legally acceptable.

Many would argue that the BNP’s policies have already overstepped that mark, and I personally have a lot of sympathy for that view, but the illogical nature of the argument against the BNP appearing on Question Time is that campaigners are not seeking to prevent the BNP appearing on the BBC at all, but only from appearing on Question Time.

MP for Neath Peter Hain has stated that the BBC’s “obligation to respect the right of a minority who have voted for the BNP… is already adequately upheld in BNP party election broadcasts, and when they are interviewed on political programmes such as Today or Newsnight.”

On Monday night Hain appeared on Newsnight (UK residents only) to attempt to explain to an incredulous Jeremy Paxton why it was okay for the BNP to appear on some BBC programmes but not others, prompting Paxton to ask facetiously; “what about Woman’s Hour?”

I was reminded of this discussion while reading the open letter to the European Competition Commission by Richard Stallman, Knowledge Ecology International (KEI) and the Open Rights Group arguing that the EC should block Oracle’s acquisition of MySQL via Sun. It followed shortly behind the press release sent out by Monty Widenius which explained why he believes Oracle should sell off MySQL to ensure that it is in a position to acquire Sun.

The overall tone of both documents imply that it would be okay for some vendors to acquire MySQL but not others, and that Oracle is not a suitable candidate. The Stallman/KEI/ORG letter explicitly states: “MySQL was acquired by Sun in February 2008, in a transaction welcomed by many users because of Sun’s good reputation among advocates of FLOSS software, and a belief that Sun would position MySQL as a strong competitor.”

Meanwhile Monty Widenius’ press release states: “Oracle should resolve antitrust concerns over its US$7.4 billion acquisition of Sun by committing to sell MySQL to a suitable third party.”

So it was okay for MySQL to be acquired by Sun and it would be okay for MySQL to be acquired by a “suitable third party” but it is not okay for MySQL to be acquired by Oracle.

The “What about Women’s Hour?” response to this letter is “What about IBM?” Would Big Blue be considered friendly enough to FOSS to be allowed to acquire Sun and MySQL had it gone ahead with its plans? What about SAP? Or EMC? Or HP? While we’re asking questions, where were these campaigners when Yahoo was buying Zimbra? Or Citrix was buying XenSource? Or VMware was buying SpringSource?

The answer, of course, is that those acquisitions were not seen to be potentially anti-competitive. We live in a society that protects and promotes free markets with the only limit being when the impact on competition goes beyond what is deemed to be legally acceptable.

It would be understandable if the complaints focused on the negative impact on competition. However, the Stallman/KEI/ORG letter only mentions competitiveness in passing, and Monty Widenius’s press release doesn’t refer to it at all.

Instead they have resorted to spreading what can only be described as fear, uncertainty and doubt.

“If Oracle is allowed to acquire MySQL, it will predictably limit the development of the functionality and performance of the MySQL software platform,” begins the Stallman/KEI/ORG letter.

Florian Mueller, quoted in Monty Widenius’s press release, took things a step further: “every day that passes without Oracle excluding MySQL from the deal is further evidence that Oracle just wants to get rid of its open source challenger.”

It is a claim that borders on the absurd. Could it not be that every day that passes without Oracle excluding MySQL from the deal is further evidence that Oracle just wants to keep MySQL and use it to its advantage? Not least since Larry Ellison said Oracle has no intention of spinning off MySQL and further promised that MySQL will receive more money for research and development.

The Stallman/KEI/ORG letter further describes Ellison’s statement that MySQL does not compete directly with the Oracle Database as “outlandish” despite the fact that it reinforces the competitive history of MySQL, as confirmed recently by former MySQL CEO Marten Mickos.

We have previously noted that Oracle could kill off MySQL as a commercial product if it wanted to, but probably won’t, but that the acquisition does pose a potential threat to the the competition.

The only possible argument in favour of the EC blocking Oracle’s acquisition of MySQL is that it is damaging to competition, not that it is damaging to MySQL itself. Otherwise we are asking the EC to rule on whether Oracle is open source-friendly enough to own MySQL, and that is neither something that an organisation like the EC is equipped to answer nor something that it should be asked to decide.

PlanetMySQL Voting: Vote UP / Vote DOWN

FOR IMMEDIATE RELEASE

MYSQL FOUNDER OUTLINES SOLUTION:
INSTEAD OF LETTING SUN SUFFER,
ORACLE SHOULD SELL MYSQL
(ORCL, JAVA)

Michael 'Monty' Widenius says European Commission is "absolutely right to be concerned" about proposed merger between Oracle Corporation [ORCL] and Sun Microsystems [JAVA], nominates award-winning EU strategist to support the proceeding

Tuusula, Finland, 19 October 2009 -- Michael 'Monty' Widenius, the creator of open source database MySQL and founder of the namesake company later acquired by Sun, today suggested Oracle should resolve antitrust concerns over its US$7.4 billion acquisition of Sun by committing to sell MySQL to a suitable third party. The proposed takeover has not yet been consummated because it is being investigated in depth by the European Commission as well as competition authorities in several other jurisdictions.

Widenius, who posted this press release to his blog, believes the EU's antitrust regulator is "absolutely right to be concerned" and called on Oracle "to be constructive and commit to sell MySQL to a suitable third party, enabling an instant solution instead of letting Sun suffer much longer."

The Finnish software developer and entrepreneur wishes Sun "all the best, but MySQL needs a different home than Oracle, a home where there will be no conflicts of interest concerning how, or if, MySQL should be developed further."

MySQL was the only Sun business unit to be mentioned in the EC's early September announcement of its in-depth investigation into the proposed takeover.

Acquirers commonly resolve regulatory concerns (before, during or after an investigation) by committing to divest problematic assets to a third party. By contrast, Oracle and Sun officials have thus far insisted they continue to seek approval of the entire transaction, irrespectively of Sun currently losing, according to Oracle, $100 million a month.

In order to support the regulators' work on the case, Widenius' new company, Monty Program Ab, works closely with Florian Mueller, a MySQL and EU affairs expert. Widenius said: "Florian gave MySQL strategic advice from 2001 on and was a shareholder until the sale to Sun in 2008, and with our support led an award-winning campaign against a proposed EU law on software patents. In August he helped us to demonstrate to the EC the need to investigate this merger and he is now on board again to meet the information needs of regulators, journalists and analysts."

According to Mueller, "every day that passes without Oracle excluding MySQL from the deal is further evidence that Oracle just wants to get rid of its open source challenger and that the EU's investigation is needed to safeguard innovation and customer choice. This is highly critical because the entire knowledge-based economy is built on databases."

Mueller demands more respect for the EC: "It's inappropriately arrogant for some interested parties to suggest that the EC has yet to understand the case. The EC is really doing a great job under huge time pressure."

In what he calls "a solution-oriented information effort that is now necessary after other parties made public statements on the case in recent weeks", Mueller announced that he will be available to journalists and analysts in Brussels (Wednesday, 21 October), London (Thursday, 22 October) and Silicon Valley (Monday, 26 October) to discuss the case.

In August, Mueller authored a position paper that Monty Program provided to the EC along with several other submissions. The latest version of the document was published today on the Internet.

About Michael 'Monty' Widenius and Monty Program Ab

Michael 'Monty' Widenius is the creator of MySQL, the world's most popular open source database. In 2001, he founded the namesake company that was acquired by Sun Microsystems in 2008 for a total consideration of approximately US$1 billion. The European Private Equity and Venture Capital Association (EVCA) named this transaction the "European Venture Capital Deal of the Year 2008". On a previous occasion, Widenius had been named the Finnish Software Entrepreneur of the Year 2003.

A visionary leader of the open source community, Widenius created MySQL's dual-licensing business model together with co-founder David Axmark. MySQL became the first piece of software to be available alternatively under a commercial license or the Free Software Foundation's GPL.

In 2009, Widenius left Sun and created a new company, Monty Program Ab, based in Tuusula (Helsinki area), Finland. Monty Program Ab develops MariaDB and the Maria database storage engine and other MySQL-related technologies. The company is a founding member of the Open Database Alliance.

Monty Program Ab corporate website

Michael Widenius' blog

About Florian Mueller

Florian Mueller is a software industry veteran with 24 years of experience (starting as an author at age 15) as well as an award-winning EU policy strategist. Previously founder and CEO of a startup he sold to the Telefónica group, Mueller became in 2001 an adviser to MySQL's then-CEO on corporate strategy and held shares in the company until its sale.

In 2004, Mueller created a campaign in 17 languages against a proposal for European patent legislation, finally rejected by the European Parliament in a historic decision at the end of a bitterly contested process. The Economist Group's European Voice named Mueller the EU Campaigner of the Year 2005 (a prestigious award that went to Pope John Paul II in 2002 and Governor Arnold Schwarzenegger in 2007). Managing Intellectual Property named Mueller to its list of the 50 most influential people in intellectual property (2005 and 2006). In 2005 he also received a CNET UK award (Outstanding Contribution to Software Development) and made it to the list of Silicon.com's 50 "Silicon Agenda Setters".

In 2007, Mueller successfully defended the EU-related interests of Real Madrid CF, the world's most famous soccer club with approximately 200 million fans worldwide.

Contact data

For further information concerning this news release, please contact Florian Mueller (telephone: +49-171-2632226, email: florian.mueller@live.com).
PlanetMySQL Voting: Vote UP / Vote DOWN

Dear Commissioner Kroes,

Last week, former MySQL CEO Mårten Mickos wrote you a letter urging approval of Oracle’s takeover of Sun Microsystems¹, asserting that Oracle’s ownership of MySQL (as part of the Sun acquisition) will increase competition in the market.

As a long-time MySQL user, a former MySQL AB staff member² and a participant in a wide range of other open source and free software projects³, I find Mårten’s conclusion to be incorrect as well as unsupported by his arguments.

In making this point, I’ll challenge the three key arguments made by Mårten:

1. MySQL and Oracle do not compete
2. Oracle has as many compelling business reasons to continue the ramp-up of the MySQL business
3. Oracle’s ownership of MySQL will increase competition in the market

Also, please note that I have no financial interest in Oracle or Sun and I haven’t been paid to write this article.⁴

MySQL and Oracle Compete

Oracle’s ownership of MySQL will lead to what the commission fears – greater costs and less choice in the DBMS market.

First, it is very clear that MySQL is a difficult and disruptive competitor for Oracle. Imagine yourself Oracle’s position: most of your present and future customers use MySQL at no cost, and the combination of open source communities and the commercial entities backing MySQL work in a distributed fashion to erode your key advantages and populate many niches in the market.

Oracle’s acquisition of Sun would provide them with a way to control this competition.

We don’t have to rely on  imagination to see the competition between MySQL and Oracle. Even a cursory examination of the market leads one to the same initial conclusion reached by the commission that, “… Oracle databases and Sun’s MySQL compete directly in many sectors of the database market …”⁵

A volume of evidence demonstrating the heated competition between Oracle and MySQL can be found online, including Oracle’s acquisitions of key pieces of  technology licensed to MySQL⁶, benchmarks⁷, case studies⁸, migration toolkits⁹, presentations given by MySQL staff at the MySQL conference¹⁰, attendance of the MySQL User Conference by key Oracle management¹¹, articles in trade publications and recently leaked Sun Microsystems internal documents¹².

Oracle’s Compelling Business Reasons

Mårten wrote that, “Oracle has as many compelling business reasons to continue the ramp-up of the MySQL business as Sun Microsystems and MySQL previously did, or even more”, but did not elaborate on what these business reasons would be.

We know that Oracle will seek to use MySQL to provide maximum value to their shareholders, but this is not the same as a “compelling business reasons to continue the ramp-up of the MySQL business” nor is it the same as, “(increasing) competition in the database market.”

Oracle has a large and successful business. Its net income for the first fiscal quarter of 2009 was reported at 1.1bn USD¹³ The direct commercial value from licensing and services that it would be able to extract from MySQL would be trivial compared to this (and would likely be at a much lower margin than services and licensing it is accustomed to.)

Some reasonable tactics and strategies for an Oracle who has acquired MySQL would include:

• Using MySQL to price-target customers, ensuring that each customer pays as much as possible to Oracle. In the past, Oracle has reduced prices on a case-by-case basis to help retain customers who have “defected” to MySQL. The reduced competition in the marketplace will give Oracle more control, especially over large institutions who currently rely on MySQL Enterprise.
• Using control of the non-software MySQL assets (such as domain names, documentation, trademarks, conferences, …) to  manage competition in the MySQL space.
• Managing the rate of innovation in the MySQL product, so as to ensure that price-targeting can be effective.
• Continued support of the open source version of MySQL, so as to ensure that other open source competitors do not become prominent enough to challenge Oracle’s business.

Oracle will engage in strategies such as these for as long as it has a compelling business reason to do so, but certainly not out of concern for or in service to the market.

Closing

Commissioner Kroes, I won’t presume to advise the commission on the best path forward, however I do hope that you have a clearer view of the facts.

Open source and the market forces that supported MySQL’s rise to prominence and allowed it to compete with Oracle will exist regardless of what the commission chooses to do.

If Oracle acquires MySQL, then the market will be hindered for the next three to five years. Customers will pay higher prices. The open source community will need a few years to route around Oracle’s control. Current MySQL customers will be faced with challenges as they decide whether or not to stay with an aggressive vendor who now has much more control of a database that they often rely on to serve the online market.

If Oracle does not acquire MySQL then it will still have significant influence, as it controls a key MySQL resource in the form of InnoDB. This is something that the open source space is still wrestling with, as various engines and forks attempt to deal with the problem.

If the commission truly wants to foster competition, a middle road would be to allow Oracle to acquire MySQL on the condition that the database, engines and documentation are released under a permissive open source licence, such as the New BSD license¹⁴. This would allow Oracle to make the acquisition that it so desires without having to spin off MySQL and would foster a great deal of competition in the market, as no single party would be able to control the integration of MySQL with other products.

1. via Matt Asay’s CNET Blog – Mickos letter to EU: “Approve Oracle-Sun deal”
2. from 2001 to 2004, I served as MySQL’s community liaison
3. including multiple years serving on Free Software Foundation’s license compliance team, working as a Mozilla Foundation staff member and volunteering for the Open Source Initiative
4. The founders of MySQL and many of the early MySQL staff are friends, which likely influences my thinking. I don’t know what options or financial arrangements friends and former colleagues who have a stake in Oracle or Sun have in place, but I’m sure that some friends will have significant benefit from a sale of Sun to Oracle.
5. EC Press Release: European Commission opens in-depth investigation into proposed takeover of Sun Microsystems by Oracle
6. Oracle acquired Innobase OY in 2005, followed by Sleepycat Software Inc. in 2006. These vendors licensed transactional database engine technology to MySQL that allowed MySQL to more effectively compete in Oracle’s space.
7. MySQL.com: February 2002 eWeek Benchmarks
8. Mysql.com case studies: ThePhoneHouse consolidates its eCommerce Systems on MySQL Enterprise, MySQL.com: Citysearch Saves Over $1 Million Using MySQL (pdf), …
9. MySQL.com: Introduction to the MySQL Migration Toolkit, Oracle.com: Oracle Migration Workbench
10. MySQL User Conference 2005: Migration from Oracle to MySQL, MySQL User Conference 2006: MySQL Migration Toolkit, MySQL User Conference 2007: MySQL for Oracle DBAs and Developers
11. Oracle VP Ken Jacobs has attended and spoken at multiple MySQL User Conferences
12. Wikileaks.org: Sun/Microsystems ‘Project Peter’ targets Oracle to MySQL migrations to boost sales
13. As reported by BusinessWeek: Oracle’s Earnings: Summer Doldrums Set In. Note that this was a rather weak quarter, as previous recent quarters reported nearly twice the income.
14. http://www.opensource.org/licenses/bsd-license.php

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