Sun Acquires MySQL, Takes a Big Leap in Database Market
In a surprise move, Sun Microsystems said it’s acquiring privately held open source database vendor MySQL AB for approximately USD 1 billion.Called the largest open source software deal ever, the merger makes Sun the owner of a critical part of the popular LAMP (Linux Apache MySQL Perl/Python/PHP) open source software stack. Sun already has been offering up its own software to open source, even basing its development tools strategy on the open source NetBeans platform.Following completion of the proposed transaction, MySQL will be integrated into Sun’s Software, Sales and Service organizations and the company’s CEO, Marten Mickos, will be joining Sun’s senior executive leadership team. In the interim, a joint team with representatives from both companies will develop integration plans.With the move, Sun takes a big leap into the USD 15bn database market, which brings it into competition with companies such as Microsoft, IBM and Oracle. Acquiring MySQL also gives Sun entry to customers that may be interested in buying more equipment and software; MySQL counts Facebook, Google, Nokia and Baidu as customers.Open source CRM vendor SugarCRM, PHP tools vendor Zend Technologies, and SpringSource, makers of the open source Spring Framework for Java development applauded the deal. “I think open source has gone mainstream,” and Sun has put its stamp on it, said Zend CEO Harold Goldberg. “We think it’s a great day for open source, and we think it’s a great day for the LAMP stack.”As part of the transaction, Sun will pay about USD 800 million in cash in exchange for all MySQL stock and assume about USD 200 million in options. The transaction is expected to close in late third quarter or early fourth quarter.
