Archive for the ‘M&A’ Category

Everything you always wanted to know about MySQL but were afraid to ask

Октябрь 26th, 2009

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

Everything you always wanted to know about MySQL but were afraid to ask

Октябрь 26th, 2009

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

Everything you always wanted to know about MySQL but were afraid to ask

Октябрь 26th, 2009

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

What about Woman’s Hour? Free speech, free markets and the future of MySQL

Октябрь 21st, 2009

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.


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Oracle *could* kill off MySQL as a commercial product, but probably won’t

Сентябрь 15th, 2009

Before I even start this post I am going to repeat our view that Oracle is well aware that it has little to gain from killing off MySQL and that we expect MySQL to become the scale-out database for non-transactional web applications and to compete with SQL Server in departmental deployments.

That said there has been some interesting discussion on Twitter this week in response to the European Commission’s investigation of Oracle-Sun about whether Oracle could - in theory - kill off MySQL. Here’s a Q+A explaining my view as to how Oracle could kill MySQL but probably won’t, and why MySQL AB’s choice of dual licensing and the GPL has come back to haunt Monty Widenius.

Q. Oracle can’t kill MySQL even if it wants to, because its open source. Right
?

A. Not really. The existing code will always be under the GPL but Oracle is under no obligation to release future developments under the GPL. It could theoretically continue to develop MySQL as a proprietary product, leaving the GPL version behind. Other developers and vendors could take the GPL code and continue its development, but they would be limited in their commercial exploitation of it.

Q. How so?

A. As Monty Program AB Chief Community and Communications Officer Kurt von Finck explained to Ars Technica, “MySQL’s licensing model gives the copyright holder a higher level of control than the rest of the community and the exclusive ability to provide certain kinds of products and services that third-party vendors cannot.” As the sole owner of the MySQL copyright Oracle would have the ability to decide who could license the code commercially for integration with non-GPL code, for example.

Q. Who does that impact?

A. As previously discussed, Oracle would theoretically have the ability to impact products that enable MySQL to better compete with Oracle’s database products, such as ScaleDB, Tokutek, Infobright and Kickfire.

Q. But that is a commercial contract issue isn’t it? What does it have to do with open source?

A. True, this is not really an open source issue but a copyright issue. However, the combination of GPL and copyright ownership also impacts the ability to fork - one of the apparent benefits of open source. Monty Program is free to build a business around MySQL but its commercial opportunities are limited. As Von Finck told Are Technica: “Anything we do will have to be GPLed. Oracle does not have this constraint.”

Q. That’s a bit tough on Monty Program isn’t it?

A. Not really, since its founder also created MySQL and was a member of MySQL AB, the company that decided to use the GPL and dual licensing to enjoy the benefits of the open source distribution model while restricting the ability of would-be forkers to compete. Oracle would simply being enjoying the same benefits of copyright ownership as MySQL AB.

Q. So it’s impossible to create a fork of MySQL then?

A. No, but it is impossible to create a fork that can be integrated with non-GPL code (or at least it appears to be - ScaleDB’s Mike Hogan has argued that it can be done via an open source intermediary layer, Monty Widenius believes vendors would need a commercial MySQL license). A company would be able to fork MySQL without the commercial opportunities however - Monty Program already has.

Q. So commercial licensing isn’t necessary to create a business around MySQL?

A. Not necessarily no. Non-GPL licensing drove the bulk of MySQL AB’s early revenue but, according to the company’s former CEO, Marten Mickos, in later years more money came from support subscriptions. A company like Red Hat, for example, could therefore take the code and create a pure open source subscription business - but it would have to invest in hiring the best MySQL developers and support engineers to differentiate it from the other MySQL support providers, and it wouldn’t be able to use the MySQL brand.

Q. Why?

A. Because Oracle owns the MySQL trademark. Hence Monty Program’s version of MySQL is MariaDB. This is also an impediment to the ability to fork, although not as significant as copyright in my opinion. MariaDB already has a significant profile.

Q. What about Drizzle, that’s under the BSD license isn’t it? And copyright for contributions are owned by the contributors.

A. That is true of community contributions, according to the FAQ. But according to the discussion in this thread, the copyright for the majority of the code is owned by Sun and only Sun can sell non-GPL licenses for it. When Oracle acquires Sun, it will assume that ownership. Arguably, if the Drizzle developers wanted to prevent Sun/Oracle from selling non-GPL licenses, they should have used the GPL for community contributions along with distributed copyright ownership.

Q. How so?

Because then Sun/Oracle would have to get the permission of the copyright owners to offer it under a non-GPL license. It has no such requirements for BSD code.

Q. How has this happened? I thought the right to fork was a key benefit of open source.

A. It is, unless the license is GPL and the copyright for the code is wholly owned by a single vendor or individual, in which case the vendor or individual has rights that are not available to would-be forkers.

Q. So is this situation unique to MySQL?

A. So far. At least in terms of the fact that the project is about to be acquired by a rival, and the creator of the original project is trying to create his own fork - and would apparently like to have the same commercial opportunities as the copyright owner. But this could theoretically happen to any project licensed under the GPL where the copyright for the code is wholly owned by a single vendor.

Q. So could Oracle kill off MySQL or not?

A. The community project, no. The commercial product, yes - if it wanted to.

Q. And does it want to?

A. As stated above, our view is that Oracle is well aware that it has little to gain from killing off MySQL and that we expect MySQL to become the scale-out database for non-transactional web applications and to compete with SQL Server in departmental deployments.

Q. But?

A. If Oracle is planning to invest in the long-term future of MySQL it could put an end to this speculation by at least hinting at what it plans to do with it, as it has with its advert regarding Sun’s hardware and operating system.

Q. Assuming Oracle did want to kill MySQL as a commercial product - can an open source community project survive a hostile acquisition?

A. We considered this question in a recent 451 Group report (clients only). One of the problems with testing this theory is that there have been very few, if any, hostile mergers or acquisitions of open source software vendors to learn from. There are some clues from looking at the history of commercial open source vendors that have ceased trading, leaving the open source projects to live on via SourceForge.

Q. And?

A. When Mindquarry, shut down the firm’s founders were all hired by Day Software, and stated that as long as there was an active community, they intended to continue their commitment to the software. SourceForge statistics for the project indicate that it has been inactive since the day it was registered. Similarly, the Ringside Social Application Server software may have outlived its corporate sponsor, which closed its doors in October 2008, but it has not been updated since July 2008, according to SourceForge statistics. On the other hand, openQRM continues to be an active project with more than 35 developers led by maintainer Matt Rechenburg, despite the closure of Qlusters in July 2008.

Q. What differentiates openQRM from Mindquarry and Ringside?

A. A committed project leader and an active community of developers. We would expect MySQL (or MariaDB) to enjoy both, and at a scale that dwarfs that of openQRM.

Q. This is all very theoretical.

A. Yes it is, but it highlights the importance of thinking through the long-term implications of licensing and copyright assignment. If you don’t want to end up in the situation faced by Monty Program, don’t go GPL with full copyright assignment.


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On the question of MySQL’s state of health

Сентябрь 7th, 2009

Matt Asay has written an interesting post speculating that Oracle might use the delay caused by the European Commission investigation into its acquisition of Sun to drive the price down. Sounds reasonable enough to me.

In it, Matt makes a couple of statements, one I agree with: “Oracle… likely will prove to be a better manager of this asset than Sun was”; and one that I have real doubts about: “MySQL’s… doing just fine, thank you”.

MySQL might well be doing fine. Unfortunately Sun’s financial results don’t actually provide any evidence either way.

Billings for the MySQL/Infrastructure were up 51% to $313m in FY09, according to information presented with Sun’s financial results, with revenue hitting $100m (up 10%) in Sun’s fourth quarter.

That sounds pretty good, but it is unclear how much of that was attributable to MySQL, and how much to “Infrastructure”. What we do know, based on Sun’s prior financial information, is that whatever Infrastructure is, it delivered revenue of $198m in FY07, the last full year without the contribution of MySQL.

(It was unclear to me at first whether revenue from MySQL had been back-dated into these figures, so I checked with Sun earlier this year - it hadn’t).

Earlier this year Roy Hann speculated that the net contribution to billings by MySQL was roughly $63M during its first four quarters under Sun, “assuming the billings for ‘infrastructure’ didn’t take a massive tumble”.

It is possible that they did, of course. The first quarter (3Q08) that MySQL was added to Sun saw MySQL/Infrastructure revenue plunge 20% YoY to $40m, which would imply that Infrastructure took a nosedive, at least in that quarter. My point is, we just don’t know.

Zack Urlocker recently claimed that MySQL sales inquiries were growing nicely (although I can’t find the original Tweet) but those outside Sun don’t know what from and what to. Mind you, those outside MySQL/Sun never knew what MySQL’s revenue was in the first place.

And we haven’t even mentioned the state of health of he MySQL’s development/sales teams.


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The EC is mostly, but not entirely, wrong about Oracle/MySQL

Сентябрь 4th, 2009

By now you are probably aware that the European Commission has decided to launch an extended investigation into Oracle’s acquisition of Sun based on concerns over MySQL.

The new has prompted a lot of criticism of the EC, much of it suggesting that the delay will do considerable harm to Sun (and therefore Oracle). This argument is valid - Sun’s already declining revenue has been in freefall since the deal was announced and one wonders how far it will fall in another 90 days of stasis.

Other criticism, (such as this from Matt Asay) focuses on the suggestion that the delay will do little to help MySQL or its users, and that the EC fails to understand open source.

This also has some validity. The EC talks about “Oracle’s incentive to further develop MySQL as an open source database” but as Matt points out “even Oracle can’t put the open-source genie back in the bottle once it has been released, as MySQL has, under the GNU General Public License.”

This is true. although I would argue, that Oracle’s potential control over MySQL is not about licensing, but copyright. The FT states that Oracle “doesn’t control the IP, since the software is available under the GPL”. That is not entirely true. The existing code will always be under the GPL but as the copyright for that code would be fully-owned by Oracle it is under no obligation to release future developments under the GPL.

I do not expect that to happen, but 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 (even if it doesn’t understand why, or hasn’t articulated that it does).

Criticism of the EC has also suggested that it is disproportionately focusing on a products with a tiny market share. There are various suggestions as to quite how small MySQL’s market share is, with the WSJ citing 0.2%, but also 1.5%, AHN 0.04%, the FT “around half a percentage point”.

What all these reports overlook is that MySQL’s influence is much greater than its market share, not only in terms of more widespread unpaid usage, but also in terms of the ecosystem of vendors that are building products based on MySQL to tap into its widespread adoption.

Examples include Kickfire, Infobright and Calpont in data warehousing, ScaleDB in shared-disk clustering, Tokutek in Web-application querying, and Schooner Information Technology and Virident Systems in caching appliances.

All of these products enable mySQL to better compete with Oracle’s database products, and many of these have commercial relationships with Sun that enable them to use MySQL in proprietary products (while Infobright is itself open source, it also has a relationship with Sun).

Calpont also plans to offer an open source data warehouse based on MySQL but has put is plans on hold while it waits to see what Oracle will do with the MySQL database. Calpont’s concern is that Oracle will choose not to promote commercial relationships that use MySQL to compete more directly with Oracle’s Database business.

The MariaDB fork provides a potential alternative for these vendors, but as we previously discussed on this blog there are questions as to whether closed-source MySQL storage engines are compatible with MariaDB.

As noted in that post, ScaleDB’s Mike Hogan has argued that it can be done via an open source intermediary layer (and given that ScaleDB does not have a commercial arrangement with Sun, the company will be hoping that its analysis is correct), but MariaDB and MySQL creator Monty Widenius is not convinced: “This can only be done by buying MySQL licenses from Sun for each copy of MariaDB that is distributed.”

If Monty is correct then Oracle’s impending ownership of MySQL could theoretically have a significant impact on the emerging market for commercial products based on MySQL and their ability to compete with the Oracle Database.

As we noted in a report on the wider implications of Oracle’s impending ownership of MySQL (451 subscribers only) “For the commercial arrangements between these vendors and Oracle to survive, they will have to show that they can provide value to MySQL without impacting Oracle.”

Is that anti-competitive? Perhaps. I would argue that it certainly warrants further investigation.


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