Upload
florian-mueller
View
214
Download
0
Embed Size (px)
Citation preview
8/9/2019 09-10-26 Presentation EU ORCL MySQL
1/15
European Concerns AboutOracle Acquiring Sun's MySQL
Florian Mueller
EU Policy StrategistAdviser to Monty Program Ab(a company founded by MySQL's creator)
Press conference in Silicon Valley 10/26Analyst briefing in New York City 10/27
8/9/2019 09-10-26 Presentation EU ORCL MySQL
2/15
Florian Mueller BackgroundPart I
1985 (age 15): articles for computer magazines
1986 (age 16): youngest computer book author
1987-1998: consultant and representative focus on licensing and distribution partnerships
between Californian and European companies
Berkeley Softworks GeoWorks (traded as GWRX;outperformed every other geographic market incl US)
Knowledge Adventure (Bill Gross, Steven Spielberg)
Davidson & Associates (traded as DAVD), acqu by CUC
Blizzard Entertainment: Warcraft II became #1 in
Germany, first time for Blizzard to top a sell-thru ranking
8/9/2019 09-10-26 Presentation EU ORCL MySQL
3/15
Florian Mueller BackgroundPart II
1996-2000: founded, managed and sold startup
2001-2008: MySQL First meeting (March 2001) in co-founder's kitchen
2001-2004: Adviser (on strategy matters) to the CEO
From 2004 on: Shareholder
2004-2006: patent policy campaigns consistentlysupported by MySQL (and additional sponsors)
Multiple awards and nominations to rankings(Economist/European Voice; Managing IP; CNET etc.)
2007: Real Madrid CF, EU competition policy
Often interrupted: own development project
8/9/2019 09-10-26 Presentation EU ORCL MySQL
4/15
Role in Oracle/Sun/MySQL Process
No involvement with US DOJ process
Mid-August: authored position paper, helpedwith questionnaire replies and EC conf call
Then focused on own project again, but stayedin contact with Monty Program on friendly basis
Announcement of new involvement: last week
Information effort in response to misinformation Involvement with processes in otherjurisdictions possible, not always announced
8/9/2019 09-10-26 Presentation EU ORCL MySQL
5/15
MySQL: new market disruptor andlow-end disruptor
New market: dynamic web pages
Code base geared toward data warehousing,strenghts/weaknesses profile good for web
Linux, Apache, MySQL, PHP/Perl: LAMP stack
Non-transactional until 2001 storage engines
SAP technology partnership in 2003 (SAP DB)
Version 5.x tree (2005-2009): storesprocedures, triggers, views, informationschemata, cursors, XML...
MySQL Cluster real-time carrier-grade DB
8/9/2019 09-10-26 Presentation EU ORCL MySQL
6/15
Low-end disruptor MySQL(chart downloaded from Wikipedia, author: Megapixie)
8/9/2019 09-10-26 Presentation EU ORCL MySQL
7/15
Competitive Situation
General-purpose vs. single-purpose databases
Cross-platform vs. single.platform databases
Lock-in: DB switching costs only justifiable forfundamental cost savings over time
Open source: MySQL strong community ANDcommercial following, no competitor has both
Migrations, design wins, price competition Functionality, reliability, scalability, credibility
Competing across all segments, synergies
8/9/2019 09-10-26 Presentation EU ORCL MySQL
8/15
Destruction Ratio
Then-CEO Mrten Mickos according to Forbes(February 2004): Software has been overglorified for 20 years. You've
been able to overcharge for underperforming software mission: turning the $10-billion-a-year database
business into a $1 billion one
Internally: for every $10 of Oracle revenue that
we destroy we make $1 of MySQL revenue Construction value = $1 billion to Sun
Destruction value from Oracle perspective = ...
8/9/2019 09-10-26 Presentation EU ORCL MySQL
9/15
Company (Not Community) Project
Intellectual Property Rights (IPRs) of the core(database engine and other key elements)created or acquired by company
Testing and word-of-mouth most importantcommunity contributions, plus smaller tools
Further innovation of complex DB engine (core)requires significant # of full-time developers
IPR comparison with Red Hat: MySQL brandvs. not owning Linux brand; core vs. fringe
8/9/2019 09-10-26 Presentation EU ORCL MySQL
10/15
Revenue Model
10%: professional services; not too scalable
IPRs allow higher prices, lower marketing costs
90%: dependent on non-open-source licensing
Dual licensing same codes different rights/oblig's:
embedding of MySQL code into other products not boundto share-alike obligation of Free Software GPL;
quid pro quo: if you are open source, then we are;
if you are commercial, then we are, too Subscriptions (MySQL Enterprise):
MySQL + proprietary tools linked to professional services
Non-open-source tools are the essential differentiator
8/9/2019 09-10-26 Presentation EU ORCL MySQL
11/15
Forking: Legal But Not Viable
Fork vendor needs to establish a new brand,difficult to find any such success story ever
Dual-licensing only a possibility for IPR owner
Subscription business would lack differentiation Developing alternatives to proprietary tools would
take time/$ and the result would
either have to be open source (thus no differentiation) or depend on a commercial license from IPR owner
Effectively, multiple forks would compete foronly about 10% of the opportunity (services)
8/9/2019 09-10-26 Presentation EU ORCL MySQL
12/15
Only divestiture sustainsvirtuous circle
IPRS
revenues
development (company, not community)
more IPRs and all over again
Monty: different home than Oracle, a homewhere there will be no conflicts of interest
concerning how, of if, MySQL should bedeveloped further
8/9/2019 09-10-26 Presentation EU ORCL MySQL
13/15
Behavorial Remedies andOracle Promises Not Helpful
FAQ in April: MySQL just addition, no details
Statements on R&D investment only deep intophase II of EU regulatory process
R&D promises don't mean effective competition
Regulators prefer structural over behavioralremedies
Oracle won't be the turkey that votes for Xmas Only separate commercial entity will use
MySQL to compete with Oracle ever more
8/9/2019 09-10-26 Presentation EU ORCL MySQL
14/15
EU Process
Phase I decision: EC press release (3 Sep)didn't mention any other area of concern
Phase II: deadline for EC decision (unless
extended by 15, 20 or 35 days): 19 Jan 2010 EC will need to decide soon (if it hasn't already)
whether it issues Statement of Objections
EC spokesman reproached Oracle for failure toact constructively
Oracle can end process anytime with remedies
8/9/2019 09-10-26 Presentation EU ORCL MySQL
15/15
Thank you!
For further information:[email protected]