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Oracle Boss Says OSS Needs Big Business

Rob writes "Oracle Corp's CEO, Larry Ellison, has maintained that open source projects are only successful when major technology corporations get involved and doubted that open source will have a major impact on the software areas in which the company operates. Speaking at Oracle OpenWorld Tokyo Ellison also confirmed that the company had inquired about acquiring open source database vendor MySQL AB and denied that Oracle's recent open source acquisitions were designed to harm its rival."

32 of 157 comments (clear)

  1. "Mission critical" by tcopeland · · Score: 4, Insightful
    From the article:
    There are huge gaps in open source, it will be a long time before open source becomes popular for what we call mission critical database applications.
    I think "mission critical" is supposed to evoke Walmart-sized behemoths, or perhaps the stock market. But isn't "mission critical" just anything that a particular business can't live without? Because indi is running on lots of open source, and it's pretty "mission critical" for our small company...
    1. Re:"Mission critical" by Iphtashu+Fitz · · Score: 2, Insightful

      Damn right! My 30-person company considers the mysql databases that power its product to be mission critical. Without them we wouldn't have a product, and without a product we wouldn't have a business. Doesn't get any more mission critical than that.

    2. Re:"Mission critical" by Anonymous Coward · · Score: 3, Interesting

      Even if it did mean behemoths, it's still wrong. The .org TLD runs on PostgreSQL, for example. Incidentally, it used to run on Oracle, and they switched to PostgreSQL - perhaps that explains why the FUD about open-source databases is flowing thick and fast from Oracle.

    3. Re:"Mission critical" by hey! · · Score: 3, Insightful

      On the other hand, a single mega corp like GM, dying from the head downward though it may be, probably represents a market of roughly equal magnitude to all the 30- person businesses in the country.

      Of course, the very idea that Open Source "needs" big companies like Oracle is absurd by definition. Open Source needs programmers. Period. By extension, those programmers of course need to be paid in coin of one nature or another, and of course have to feed themselves. But this doesn't necessarily imply an Oracle or IBM jumping on the bandwagon. If linux were to shrivel away as a server operating system, and be kept alive by hobbyists, the genes are still there, in source form.

      However, what Ellison's saying has some truth within the context of his perspective. In that perspective, 30- person companies are little better than ants. Open Source "needs" big companies to accrete the features and services that huge companies demand. You can debate dictionary definitions, but in usage, "enterprise" is understood as "big enterprise" by people who use the term. "Mission Critical" means critical to flow of substantial revenues. The rougly 5-10 million dollar annual revenue of the kind of company you're talking about doesn't qualify as "substantial" in these terms: it's not much larger than a typical CEO annual bonus; some CEOs get more.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    4. Re:"Mission critical" by AKAImBatman · · Score: 2, Insightful

      Open Source needs programmers. Period.

      The best products represent a collaboration between programmers, designers, artists, usability experts, documentors, and experts in the target market. Open Source needs a lot more than programmers to acheive that.

      i.e. Open Source needs talented people of all walks. Period.

    5. Re:"Mission critical" by Iphtashu+Fitz · · Score: 2, Insightful

      On the other hand, a single mega corp like GM, dying from the head downward though it may be, probably represents a market of roughly equal magnitude to all the 30- person businesses in the country.

      True, but in this day in age it's also important to keep in mind where the next GM-sized companies are likely to come from. Startups are a lot more likely to use FOSS tools like linux, mysql, etc. to get their ideas off the ground than they are to spend many thousands of dollars up front on licenses from Oracle, Microsoft, Sun, etc. Eventually the successful start-up might start migrating to Oracle, etc. once they reach a point that justifies such a move, and the Oracles of the world need to recognize that this is a roadmap that smaller companies are likely to follow. True it may take some time, but that's where their future customers are likely to come from.

    6. Re:"Mission critical" by poot_rootbeer · · Score: 2, Funny

      When Larry Ellison say "mission critical", naturally he means "customer installations large enough that Oracle's revenues would be notably reduced if they migrated to an open-source alternative"...

    7. Re:"Mission critical" by MECC · · Score: 2, Interesting
      On the other hand, a single mega corp like GM, dying from the head downward though it may be, probably represents a market of roughly equal magnitude to all the 30- person businesses in the country.

      Ellison is a hammer looking for nails. As for the above quoted statement, here are some facts:

      From www.sba.gov (some headings clipped for brevity; link point to PDF file with full text):

      The Office of Advocacy defines a small business for research purposes as an independent business having fewer than 500 employees.

      Small firms
      - Represent 99.7 percent of all employer firms.
      - Employ half of all private sector employees.
      - Pay 45 percent of total U.S. private payroll.
      - Have generated 60 to 80 percent of net new jobs annually over the last decade.
      - Create more than 50 percent of nonfarm private gross domestic product (GDP).
      - Supplied more than 23 percent of the total value of federal prime contracts in FY 2004.
      - Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.
      - Are employers of 41 percent of high tech workers (such as scientists, engineers, and computer workers).
      - Are 53 percent home-based and 3 percent franchises.
      - Made up 97 percent of all identified exporters and produced 26 percent of the known export value in FY 2002.

      In 2004, there were approximately 24.7 million businesses in the United States, according to Office of Advocacy estimates. The Internal Revenue Service (IRS) estimates there were 29.3 million nonfarm business tax returns in 2004; however, this number may overestimate the number of firms, as one business can operate more than one taxable entity. Census data show there were 5.7 million firms with employees and 17.6 million without employees in 2002 (and 18.6 million without employees in 2003).
      --
      "We are all geniuses when we dream"
      - E.M. Cioran
  2. In other news, by Rob+T+Firefly · · Score: 4, Funny

    the CEO of General Mills has declared that breakfast is only successful when big business gets involved, the Maverick playing cards company has concluded that games of chance are only successful when big business gets involved, and the Louisville Slugger company have announced that bludgeoning people with baseball bats is only a success when big business gets involved.

  3. Gaim? by hotspotbloc · · Score: 4, Insightful

    IFAIK Gaim doesn't have a corporate sponsor but is an extremely successful OSS project. Corporate sponsorship is a great thing but not a requirement for a great project.

    --
    "I hate to advocate drugs, alcohol, violence or insanity but they've always worked for me" - HST
    1. Re:Gaim? by Bradmont · · Score: 2, Insightful

      And how about Debian?

    2. Re:Gaim? by ciroknight · · Score: 2, Insightful

      Gaim is not really a good example because its namesake and main functionality (gAIM), piggybacks on the AOL Instant Messanger server network. I do agree that Jabber functionality embedded in Gaim could be a good example, however, for the majority of users using Gaim, Jabber isn't a priority.

      A better example could be Apache and the Apache Foundation (but they get a lot of money from people), and the absolute best example I can think of are Seamonkey and Firefox from Mozilla. None of these products are directly sponsored, though they do get money from bigger organizations to recoup costs of things like bandwidth, though BitTorrent could be used to significantly offset a lot of that (which is another good example).

      So what have we learned? Corporate sponsorship happens because people need money to get things done. Most organizations don't care where the money is coming from, just that they're getting it. And I think at the heart of things, that's what Larry Ellison is trying to say.

      --
      "Victory means exit strategy, and it's important for the President to explain to us what the exit strategy is." G.W.Bush
    3. Re:Gaim? by dylan_- · · Score: 4, Funny
      Where would Debian be without IBM (and other companies) supporting Linux kernel development?
      Exactly the same place. IBM's contributions haven't made it into Debian yet...

      (Joke! I'm joking!)
      --
      Igor Presnyakov stole my hat
  4. Maybe I'm missing it, but... by epiphani · · Score: 4, Insightful

    open source projects are only successful when major technology corporations get involved

    Show me the big buisness involvement with qmail. sendmail? how about bind? Does ISC count as a "major technology corporation" now?

    I suppose you could also require a definition of successful. Buisness definition of success is money. My definition of success is how many people use it. IRC. Big buisness has generally steered right clear of it. Probably about a million people using it. Is IRC successful? Cause thats one of my open source projects.

    What about RFC791. That could be seen as "open source". BSD's socket layer? Definitely open source. Definitely successful, Microsoft used it. I wouldnt say any big buisness made it successful. I would say it was successful beforehand, and big buisness used that success to further its own goals.

    --
    .
    1. Re:Maybe I'm missing it, but... by Yvanhoe · · Score: 2, Funny

      Probably about a million people using it. Is IRC successful? Cause thats one of my open source projects.

      Sheeeesh, my open source project is Internet then, bigger than yours!

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
  5. Listen to what Larry says. by tpgp · · Score: 2, Insightful
    After all, he is never wrong ;-)

    Seriously however - story summary is "Big business says others need big business." Not really surprising is it.

    Lastly, he doesn't even get cause & effect right:
    "Open source becomes successful when major industrial corporations invest heavily in that open source product,"
    Should read:
    "Major industrial corporations invest heavily in Open source when that open source product becomes successful"
    Larry - stick to what you're good at - Amusing Bill Gates quotes
    --
    My pics.
  6. nonsense by Cederic · · Score: 4, Insightful


    I think Larry's pushing an agenda here. Linux and Apache were both tremendously successful long before the big corporations got involved. They got involved _because_ the Open Source products were successful.

    If MySql hadn't established a market niche that's now threatening Oracle, would Larry have looked at buying it? How did he make it successful?

    What about standard staples of Java development such as Ant, JUnit, even things like Struts? Sure, most corporations use them. But they're successful because they're written well, they add great value, they're available, and they were all of those things without IBM or Oracle or Microsoft buying them, promoting them, offering to support them, etc.

    I think Larry's wrong. Surprisingly often people do just sit at home and write world-class software, and sometimes that does become successful. Open Source definitely doesn't need corporate sponsorship; the two can go together very nicely.

  7. Ignorant comments by porkThreeWays · · Score: 3, Informative

    "Red Hat didn't make Linux: IBM made Linux, Intel made Linux, Oracle made Linux," according to Ellison.

    "We have many more developers on Linux than Red Hat," he added, pointing out that the Redwood Shores, California-based company Oracle Cluster File System to enable Linux to scale across enterprise clusters


    Man, those are some ignorant ass comments. Oracle is a much bigger company than red hat. It's more interesting to see the percentage of their developers focused on open source. I can pretty much guarantee it's red hat. Red hat needs open source to survive. It's the basis of their whole business model.

    Second of all, those three companies did NOT make Linux. IBM has been a very good general purpose contributor, and to a lesser extent Intel. However, Oracle is NOT in that bunch. Oracle's contributions are minor compared to the other two and can be mostly traced back to enhancements that directly benefit their commercial products. Not saying their contributions aren't appreciated, but they are by no means the same league as Intel and IBM. And really, he just spouted out a couple of his butt buddies. There are a lot of small companies that make a particular product based on linux (such as backup solutions) that make extremely important contributions. The only surviving iSCSI implementation on Linux came from a small company making a linux based backup solution. Intel in fact contributed iSCSI code that is now largely depreciated. Open source does need a commercial counterpart, however it's not the 500 pound gorillas that make open source unique. It's the small companies that need it to survive. I can't say the same or Oracle.

    --
    If an officer ever threatens to taze you, say you have a pacemaker.
  8. Open Source Success by Ping+the+Penguin · · Score: 2, Insightful

    So Larry hasn't heard of Apache or Samba then...

    I think that pleny of people would consider these somewhat successful projects mission critical.

    I also don't recall any big companies helping them but I can think of one trying to kill them...

  9. who leads who? by Virtex · · Score: 5, Insightful

    Larry Ellison, has maintained that open source projects are only successful when major technology corporations get involved

    That's funny. It seems to me that major technology corporations usually get involved in open source projects only after they become successful.

    --
    For every post, there is an equal and opposite re-post.
  10. In other news by Flying+pig · · Score: 3, Insightful
    William the Bastard of Normandy says "Democracy will never work. Cooperating groups of smallholders never get anywhere until large feudal landlords take over."

    Capitalism: the replacement of elected government by government by unelected multinational corporations in the name of freedom.

    --
    Pining for the fjords
  11. It's true. by Stalyn · · Score: 2, Insightful

    If Linux is going to make headway into the desktop market it will need help from big business. The X.org version of the X protocol server has maybe 10 active developers working on it and maybe 20-30 semi-active developers. How is this going to be competitive? Also we need some big corps to push on graphics vendors like Nvidia and ATI to take Linux seriously. Even though ati/nvidia driver support is getting better it's only according to their limitied resources allocated towards Linux devel.

    --
    The best education consists in immunizing people against systematic attempts at education. - Paul Feyerabend
  12. Re:No clue on relevance of revenues or who made Li by mooingyak · · Score: 2, Informative

    I suspect the original was referring to "Megadollars" and "Gigadollars", or million and billion for the rest of us.

    Personally, when I see $15G, I think 15 Grand, but that doesn't make sense in this context.

    --
    William of Ockham had no beard. The most likely explanation is that it was chewed off by squirrels every morning.
  13. Note To Larry Ellison: by aquatone282 · · Score: 2, Funny

    Since every Oracle product/patch I have used has required intensive research of user forums (because your customer support site Metalink sucks balls) to get it to work properly, what exactly is the difference between your product and and open-source product other than the fact that you make your customers pay ridiculous sums for the privilege of debugging your software?

    P.S. You're an asshole Larry.

    Signed,

    An Oracle Customer

    --
    What?
    1. Re:Note To Larry Ellison: by k4_pacific · · Score: 3, Funny

      O.R.A.C.L.E. == One Rich Asshole Called Larry Ellison.

      --
      Unknown host pong.
  14. Re:A Test For Ellisons Claim by IflyRC · · Score: 3, Insightful

    ...or you can look iat it another way. Big business can stop using open source code. All large corporations running Linux suddenly stop.

    Development would slow for Linux and any other open source project is it was not allowed to be used in big business.

    I see it more as a combination of the two. Large corporations deal with folks like IBM and Oracle. When their consultants go in, if they are able to push OSS then OSS will be touted as more and more of a success story while IBM and Oracle sit back and reap the benefits of having support contracts, development contracts and implementation contracts.

  15. Well meaning, somewhat true, mostly bu11$h!t by bshensky · · Score: 3, Interesting

    I've been doing Oracle since V5 and Linux since Red Hat 4.5. My take:

    From the perspective of Open Source, Larry's like that "successful" uncle at your family picnic. He brings lots of toys to play with, the kids love him, is largely generous to a fault during his visit. But ask him how he made his riches, and he's liable to try to suck you into his pyramid scheme, and that's the last thing you want to hear at your family gathering.

    Most of you would think it would be just fine if he stopped showing up at the family shindigs, but deep down, you'd all miss him, even if only a little bit.

    Oracle wouldn't engage Open Source if there wasn't something for Oracle to gain from it. Let me tell you, Oracle App Server would be far more an abomination than it is today had they not built the latest version around Apache, for example. Their "grid" marketspeak is built firmly on the proliferation of free OS on cheap hardware, so they've already tied their future to (and bet it on) the success of Linux, and they're damned if they're wrong.

    Ultimately, I think Larry and Oracle have taken on a relatively healthy, pragmatic relationship with Open Source. There's plenty of banter about how Oracle's assisted Red Hat, helped Zend get off the ground, and all that, but it's sometimes difficult to actually quantify what they have infused back into the OSS realm. I wish I'd see more Oracle-backed projects on SourceForge, for example.

    In the same breath, I'm just a bit disturbed about their shenanigans with MySQL. WTF? I tend to believe they're trying to leverage the MySQL *technology* into their software offerings, and at the same time make themselves the clear target for migration when companies grow, rather than obliterate the MySQL product itself. Obliterating MySQL would amount to biting the hand that feeds Oracle - the backlash would be fierce and paralysing. Instead, I could easily see a Oracle-branded read-only data warehouse *cache* bolted onto its App Server product that's "Powered By InnoDB". Get it?

    Larry should just shut up and find a better way for the Rasums Lerdorfs and Bob Youngs of the world to get heard. We get it, Larry - you're successful. Now shut up and eat a hot dog.

    --
    Makin' money, makin' friends, makin' whoopee and wearin' Depends
  16. Ellison - Devil Incarnate by McFadden · · Score: 3, Insightful
    I've said it before and I'll say it again. People may fear, loathe or just distrust Bill Gates and his lust for monopolistic dominance, but compared to Ellison, he's a pussycat. Ellison IS the antichrist. I've witnessed a few of his speeches firsthand, and been at a cocktail party where he was present. I've never seen anyone who seems so entirely driven by hatred. He has a strange aura of evil around him. I feel grateful that Microsoft is largely controlled by bumbling geeks like Gates and baboons like Ballmer. If Ellison was in their position we'd be paying his company to wipe our ass by now.

    He doesn't like OSS for one simple reason. It's not his. He doesn't own it, control it, or make money from it (although arguably his products sometimes rely on it).

    I'd let my children go to for a fun day at the park with Bill. I wouldn't let them in the same room as Larry.

    Sorry -now I've got that off my chest, feel free to resume the conversation.

    1. Re:Ellison - Devil Incarnate by robertjw · · Score: 2, Insightful

      Thing is, I trust Ellison. I trust him to be the ruthless scheming greedy SOB he is. Gates is trying to make him love you every other minute. He tries to trick you into thinking his product is good. He makes excuses for his shortcomings. How often do you hear anything like this from Ellison. His product dominates the high end database market and from what most people say is excellent. He doesn't waffle around issues or change his mind 40 times a day.

      He may be pure evil, but he's honest passionate evil. Not slimy, nerdy, snake oil salesman evil and I can respect that.

  17. OT: pseudo-socialist rant by Tony · · Score: 3, Insightful

    We hate it, sometimes with good cause, just as often with no cause but social inertia.

    Generally, the dislike of big business is not due to "pseudo-socialism," but for the other factors you mention: the abuse that accompanies "success." We hate oil because they gouge the customer, hire thugs to shoot up villages in Africa, and abuse their position as gatekeepers to the world's energy.

    We hate Wal*Mart because their full-time workers don't make enough at their full-time job to live off, even if they shop at Wal*Mart. We hate Microsoft because they used their dominant market position to shut out competitors in the late 80s, early 90s, and are generally the Budwieser of software. We hate big pharmaceuticals because they research impotence cures, and not things like AIDS cures (they leave that to the universities, but they'll be the first to patent any real results).

    In every case, the company is using their superior position (usually government-protected monopoly; or in the case of Microsoft, a "natural" monopoly the abuse of which the government ignores) to destroy perceived competition, rather than competing on their merits. They do anything to maximize profit; and that generally means screwing the citizens of the world (often not even their customers).

    The easiest definition of "evil" is fucking over someone for your own gain. Big companies often do that as a first recourse, rather than a last resort. Enron's manipulation of the energy market cost California billions of dollars. Enron is a shining example of corporate success, if only they didn't get caught. Hell, even getting caught hardly did anything. The people most responsible are still walking free, enjoying their riches.

    As long as corporations can fuck over people for their own good, there is no free market. It's not like a candy store; we can't just open up next door and compete with Exxon. The market is regulated more by big business than by big government, to the point where government is in the pocket of big business.

    I can think of no giant international business that didn't get where it is by intentionally fucking over lots and lots of people. I'm sure there are some. I certainly don't despise all big business; just the ones I know are evil.

    Thanks for letting me rant.

    --
    Microsoft is to software what Budweiser is to beer.
  18. Larry Ellison - Iraqi Information Minister by HangingChad · · Score: 2, Funny

    There are no MySQL's within a 150 miles of Silicon Valley! We will drive the infidel open source hoardes into the sea! MySQL tables will become bloated with corrupt data and their data bits will rot in the desert. Their administrators will wail and lose their jobs as they and their children beg in the street for scraps of data. Our glorious Oracle army will rise up and smite the invader!

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  19. OSS needs big business? by Todd+Knarr · · Score: 2, Insightful

    OSS needs big business to be successful? Oh, then I guess that Linux thing can't have become a huge success, then. And Apache, that can't have been successful as a Web server. And Sendmail couldn't be a very successful MTA. What? All of those are successful? How odd. :)

    I think the "open-source needs big business" is wishful thinking on the part of big business. They depend heavily on open-source software for critical things, and to admit that it could be successful without them would invalidate too many of the assumptions their world's based on.