Topics for this podcast:
*Hadoop v1.0 and year ahead
*Oracle-Cloudera deal for more Hadoop
*Oracle’s ‘Sun spot’ with Solaris
*Open Source M&A outlook for 2012
*Our new MySQL/NoSQL/NewSQL survey
iTunes or direct download (28:49, 4.9MB)
Topics for this podcast:
*Cloud M&A potential around OpenStack
*Oracle’s commercial extensions for MySQL
*Puppet Labs rolls out Enterprise 2.0, hosts PuppetConf
*Basho bolsters Riak distributed data store in NoSQL race
*Our latest special CAOS report, ‘The Changing Linux Landscape’
iTunes or direct download (25:59, 4.4MB)
There was another acquisition involving open source software recently when Consona bought Compiere, but what is perhaps most striking about the deal from an open source software perspective is how little it and the Compiere community mattered in the deal.
By most accounts, including that of fellow open source ERP player xTuple CEO Ned Lilly, who offers an interesting and accurate depiction of Compiere’s changes, acknowledge the movement away from community that occurred over the last few years at Compiere. As discussed in our own recent report on the deal, we are also somewhat skeptical over the fate of what is left of Compiere’s open source community, even though Consona plans to continue offering both paid and free versions. At the same time, we are also wondering whether it will matter much — to Consona, to Compiere or even to its customers?
So how does this jibe, or not, with our views on how M&A deals and valuations involving open source software vendors tend to highlight the value of open source communities?
Community has served to drive up the price in deals stretching back for years (Citrix-XenSource for $500m, August 2007; Nokia-Trolltech at $153m, January 2008; Sun-MySQL for $1 billion, January 2008; VMware-SpringSource $420m, August 2009), but the reality in the case of Consona-Compiere (price not disclosed) is that community, or lack of a vibrant open source software community, may have actually driven the price down.
We must also consider the significance of cloud computing here. Cloud capabilities and possibilities in the enterprise version of Compiere’s platform may have trumped community in this case, but the deal still serves to remind open source software companies, as well as their existing and potential partners and acquirers, that community counts.
Finally, after many months, Oracle's long-awaited acquisition of Sun Microsystems has been completed. Having joined Sun as part of the MySQL acquisition two years ago, I think it's a good outcome both for Sun and for MySQL. The vision behind Sun's acquisition of MySQL was right on: Sun wanted to become the leader in open source and use MySQL as
Earlier today Oracle executives, in an event spanning more than four hours, presented their strategy for integrating Sun's assets with Oracle. I'll just update readers on the section related to Sun's open source assets.
Earlier today Oracle executives, in an event spanning more than four hours, presented their strategy for integrating Sun's assets with Oracle. I'll just update readers on the section related to Sun's open source assets.
Topics for this podcast:
*Open source in consumer devices
*VMware-Zimbra deal highlights open source, cloud
*A capitalist’s guide to open source licensing
*Latest on Oracle-Sun-MySQL, M&A implications
iTunes or direct download (24:48, 5.7 MB)
Topics for this podcast:
*Open source in consumer devices
*VMware-Zimbra deal highlights open source, cloud
*A capitalist’s guide to open source licensing
*Latest on Oracle-Sun-MySQL, M&A implications
iTunes or direct download (24:48, 5.7 MB)
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.
A quick review of Save MySQL online petition stats shows that the results are still in line with the results I reported previously. Over 90 percent of petition signees would require Oracle to divest MySQL to a "suitable third party."