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E.U. requirements may force Oracle to drop Sun deal
U.S. regulators approved the buyout fairly early, but E.U. regulators have been much more sluggish. Oracle promised its shareholders that the Sun deal would help earnings, so the smaller company was forced to lay off 3,000 people last month to help its faltering margins. And to make matters worse, Sun's server business has deteriorated since the acquisition was announced.
The E.C. contends that the marriage of the two companies would give the combined firms a high market share in certain enterprise software businesses. Several media reports predict that the European Commission will tell Oracle that in order to prevent the transaction being blocked, Oracle needs to make compromises by divesting itself of some of Sun's businesses as part of its plan to integrate the company into its operations.
Read the rest of the article here: http://www.dailyfinance.com/2009/11/04/e-u-requirements-may-force-oracle-to-drop-sun-deal/ .
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Message #328771
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Re: E.U. requirements may force Oracle to drop Sun deal
Not funny at all. If the acquisition gets dropped, then it could cause great damage to Sun/Java/Solaris.
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Message #328774
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Not funny
EU sucks as usual. They have tons of problem with every big companies doing business in Europe.
If Oracle & SUN merger fails SUN will be in big trouble so does Java. It is not like Java will die but people working SUN will get big hit & in this economy it is not good at all. I think people don't care what happens to others just keep my job safe...man...
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Message #328775
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Alternative
Well, what's the alternative, really? Sun has taken very heavy damage due to the two subsequent acquisition attempts. It's not like they make bad hard- or software so it's not "worthless". They could adapt a Red Hat-like model for it's software and adapt a Microsoft-like partnership model. They would be out of trouble in time, however, I think it would take some heavy investment.
From a naive point of view they could either have Oracle buy 49% of the stock (keeps them out of trouble with the EU) or do a "GM" and beg the state for emergency loans.
The first option is not so far fetched. There are hundreds of billions of dollars invested in Java throughout the world so it's not like it would be very feasible for Oracle to let Sun die.
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Message #328793
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How about a bailout?
O man, Let's print some more greenbacks and pump it into Sun. We raise some salaries and call it a healthy job savings success story. We need a software zar to regulate the ESB channels. Isn't this what we call social software?
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Message #328794
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Re: Not funny
EU sucks as usual. They have tons of problem with every big companies doing business in Europe.
If Oracle & SUN merger fails SUN will be in big trouble so does Java. It is not like Java will die but people working SUN will get big hit & in this economy it is not good at all. I think people don't care what happens to others just keep my job safe...man...
I complete disagree with you.
EU is correct to take its own time.
US is a capitalistic market which does not give a damn about anything. Big $$$ is the talk in US.
In EU - they worry about locking in with one vendor, worry about monopoly.
Remember - microsoft has paid a ton of money and has made changes to their products just for EU. It was fine in US. So EU is biased and is doign the right thing.
I m surprized that some of you are not worried when you have oracle which owns - hardware, database, application server... isnt that bad for open source and any small business in general ?.
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Message #328796
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Re: Not funny
EU sucks as usual. They have tons of problem with every big companies doing business in Europe.
If Oracle & SUN merger fails SUN will be in big trouble so does Java. It is not like Java will die but people working SUN will get big hit & in this economy it is not good at all. I think people don't care what happens to others just keep my job safe...man...
I complete disagree with you.
EU is correct to take its own time.
US is a capitalistic market which does not give a damn about anything. Big $$$ is the talk in US.
In EU - they worry about locking in with one vendor, worry about monopoly.
Remember - microsoft has paid a ton of money and has made changes to their products just for EU. It was fine in US. So EU is biased and is doign the right thing.
I m surprized that some of you are not worried when you have oracle which owns - hardware, database, application server... isnt that bad for open source and any small business in general ?.
Also oracle owns java too...
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Message #328806
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Re: E.U. requirements may force Oracle to drop Sun deal
Without passing judgment on either approach, I will say that the US and the EU look at different aspects of an acquisition. The US cares about how a potential monopoly might affect consumers (not a lot of consumers here), while the EU cares about how a potential monopoly might affect competitors. I'm not sure what the better approach may be, but clearly there is an issue with Oracle acquiring, not Java, but MySQL.
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Message #328890
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Re: Not funny
EU taking time is hurting sun. If oracle backs off, then Sun is left is a very weakened state. Who does that help? How doe that foster competition?
EU is correct to take its own time.
US is a capitalistic market which does not give a damn about anything. Big $$$ is the talk in US.
In EU - they worry about locking in with one vendor, worry about monopoly.
Remember - microsoft has paid a ton of money and has made changes to their products just for EU. It was fine in US. So EU is biased and is doign the right thing.
I m surprized that some of you are not worried when you have oracle which owns - hardware, database, application server... isnt that bad for open source and any small business in general ?.
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Message #328894
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Re: Not funny
EU taking time is hurting sun. If oracle backs off, then Sun is left is a very weakened state. Who does that help? How doe that foster competition?
how does sun being in a weakened state have anything to do with competition?
frankly, if the eu kills the acquisition, it's the best deal for everybody except sun shareholders and oracle. neither of which the government should care about.
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Message #328902
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Re: Not funny
I thought you guys are concerned about the future of Java and MySQL. So why not be concerned about the state of SUN. Or are you just resistant to this deal because it's Oracle acquiring SUN?
What EU can do is allow the acquisition of the whole thing, not just partial, and just put conditions (e.g. regarding some products, etc.) to protect some healthy degree of competition. Competition shouldn't be treated in absolute terms. Even if Oracle get's a higher market share, there is still an adequate level of competition left in the market. And competition should primarily be driven by good products and services which ultimately benefit the consumer.
Peace.
EU taking time is hurting sun. If oracle backs off, then Sun is left is a very weakened state. Who does that help? How doe that foster competition?
how does sun being in a weakened state have anything to do with competition?
frankly, if the eu kills the acquisition, it's the best deal for everybody except sun shareholders and oracle. neither of which the government should care about.
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Message #328987
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strange...
One of the most conflicting facts is that the majority of EU - agencies currently use and developer services with Oracle products - spending quite a lot of money on DB's + application servers + business tools.
Maybe they are afraid of the Java lock-down since they think at least from this end they are free - but the truth is that the DB lock is stronger. Try to migrate a huge enterprise applciation built for years with Oracle to something else and you understand that is a nightmare!
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Message #329014
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Re: E.U. requirements may force Oracle to drop Sun deal
Perhaps after dropping the deal, SUN will get into trouble but I believe if it doesn't the future of Java will be darken. Even if Oracle has many great products in the world but they will change Java into something that make programmers turn into another language! And it will no longer of interest but for a few people with certain requirements.
I believe that the Oracle is not a good option to purchase SUN. I hope EU force them to drop otherwise we should say goodbye to Java
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Message #329031
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Monopoly?
Monopoly is bas for all, i think. Watching for thé best for customers is just a bad reason
world in général nées absolutely variety and diversity and human centric views. We must care about that. Thé buy of mysql by Oracle if oracle kill thé database Will make customers worry about thé choice of open source system. Open Source is more than free code free of charge it allow little firms to start a business, student to become and a chance for little people to Bégin something. When that kind of opérations happens we can think that most of people are loosing somthing , not thé powerfull people but thé others. Monopoly is not human centric. We need social economy, american dream need open source or it Will Die.
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