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Oracle Buys BEA

In an event not as surprising as this morning's buyout announcement, but still noteworthy, Oracle has purchased BEA Systems. The middleware maker was snapped up for the sum of $8.5 billion, the second offer Oracle put forward. "BEA had long been considered a prime takeover target in an industry that has been consolidating for several years, but BEA executives had repeatedly dismissed Oracle's overtures, saying the company could perform better independently. Mr. Icahn began buying up BEA shares last summer, and today owns 13 percent of the company. The deal makes Oracle the undisputed leader in the market for middleware, business software that gets its name from its role as a layer of programming code that resides between a company's database system and the payroll, human resources and inventory systems that use the same data."

24 of 115 comments (clear)

  1. BEA Employee Comment by Anonymous Coward · · Score: 5, Interesting

    It will be interesting to see what they ultimately get for their $8.5B. I work in a BEA group where quite a few folks are ex-Oracle, and they have universally unkind things to say about their former employer. The mood is decidedly un-optimistic in our CA office.

    Any tips on how to request to be on the list of layoffs (to get the severance)?

    -OracleHater

    1. Re:BEA Employee Comment by tgd · · Score: 5, Funny

      Step 1: Don't post as AC

    2. Re:BEA Employee Comment by eln · · Score: 5, Funny

      I think it's pretty safe to say at this point that if you work for a company that has anything to do with middleware, database software, or pretty much any other enterprise software, you'll eventually end up working for Oracle or being laid off by Oracle.

    3. Re:BEA Employee Comment by Darkforge · · Score: 4, Informative

      Any tips on how to request to be on the list of layoffs (to get the severance)?
      Ask your manager nicely. I'm serious!

      I was at Plumtree when BEA acquired us (now it's the "Business Interaction Division" making the ALUI products) and a number of people said to their managers "BEA isn't the place for me" and walked away pretty happy.

      The joke was always that BEA stands for "Built Entirely on Acquisitions" ... they seemed to know how to handle themselves when acquiring. Here's hoping they'll handle themselves gracefully as they're being acquired.
      --

      When I moderate, I only use "-1, Overrated". That way, I never get meta-moderated!

    4. Re:BEA Employee Comment by ndykman · · Score: 4, Interesting

      Or Microsoft. Or IBM. And doesn't RedHat count with the whole JBoss thing?

  2. Re:Srsly by cioxx · · Score: 4, Funny

    It's that thing that sits between topware and bottomware.

    It's a very important ware. You might say it's essential for enterprises.

  3. i was just reading by Surt · · Score: 4, Insightful

    About how Oracle is floundering, and quite close to melting down from its attempts at integrating all the middleware platforms it has picked up in the last four purchases it made. Obviously, when you're having serious trouble getting all your different software platforms integrated, the best solution is to buy another one. Good move Oracle.

    --
    "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  4. Re:Srsly by Bill,+Shooter+of+Bul · · Score: 4, Informative

    A marketing term for any piece of software that a user does not directly see, or alternatively any piece of software a journalist doesn't understand.

    In BEA's case there talking about Tuxedo ( distributed messaging/ queuing system), weblogic ( J2EE app Server) and aqualogic ( a compilation of buzzwords compliant programs that I don't understand).

    --
    Well.. maybe. Or Maybe not. But Definitely not sort of.
  5. "wtfismiddleware" tag by Murmer · · Score: 2, Insightful
    "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

    It's the user tax on closed formats and closed source, basically.

    --
    Mike Hoye
    1. Re:"wtfismiddleware" tag by neurovish · · Score: 2, Insightful

      "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

      It's the user tax on closed formats and closed source, basically. So how does an in house Java application running on JBoss and using a MySQL database fit into your analysis of Middleware?
    2. Re:"wtfismiddleware" tag by Max+Littlemore · · Score: 4, Informative

      "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

      Bullshit.

      While middleware is appropriate in the context you put forward, it is also appropriate in the "We have a mainframe app we built ourselves 15 years ago and we need to integrate it with a new web app we've developed and have those to apps work together with all our external partners and regulatory bodies" type scenario. Whether the source code of either system is open or closed is irrelevant if the interfaces are well defined. Middleware makes sense if you look at it from the point of view of a business performing a staged upgrade, whereby they can leave legacy systems which aint broke running, implement new functionality on new systems (which wont require them to hire a bunch of 70+ year old COBOL codgers to maintain it for the next 15 years) and then migrate the old functionality to newer tech. It all happens seemlessly with a good middleware solution, at least in theory.

      Middleware is not a closed source tax, it is the mortar that helps keep solid infrastructure solid, whether you use open or closed source software.

      --
      I don't therefore I'm not.
  6. Re:Undisputed? by Surt · · Score: 4, Interesting

    Buying a company is usually about buying their loyal customers, not about buying their product. Then you declare that the official upgrade path for their software is onto your own product's software track in the next version. Very few of the customers will revolt, thanks to limited marketplace options.

    --
    "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  7. What Mr. Icahn really said by ServerIrv · · Score: 3, Interesting

    "This transaction is an excellent example of the great results that can be achieved for all constituencies when the shareholder activist is able to work cooperatively with management," Mr. Icahn said in a statement. (from TFA)

    Translation...this hostile takeover is an excellent example of how I can buy up lots of stock, sue said company into being bought out, the stock price artificially goes up so I make tons of money, lots of employees get screwed, and I don't care about the pawns in my money game," Mr Icahn laughed as he went to the bank with his ill gotten, but "legal" gains.

  8. ...or... by Anonymous Coward · · Score: 2, Insightful

    .... or IBM, or Software AG, or SAP

    Although Oracle has a knack of taking perfectly good products and tying them to Oracle in ways that aren't fathomable.

    For example, Oracle's LDAP service requires you to use an Oracle DB to store the data attributes, despite the fact that this is demonstrable a bad thing. Everything Oracle does is not just to make money, but to make it selling you more DB licenses, even if it doesn't make technical sense to do so.

  9. Compatibility tax by sjbe · · Score: 2, Informative

    It's the user tax on closed formats and closed source, basically. Agreed though I would add lack of compatibility (or inability to plan compatibility) to the items being taxed. For a lot of companies "off the shelf" just doesn't quite get the job done and heaven forbid two pieces of software actually communicate. [/sarcasm] While I certainly wouldn't argue forward compatibility is easy (quite the opposite in fact) I see middleware as the cost of building or buying systems with insufficient flexibility up front. Companies get trapped by limitations in off the shelf software or sometimes by poorly designed custom software. Not always avoidable but middleware is frequently the cost. Unfortunately the IT world is so unpredictable it's really hard to plan even 5 years out sometimes.
  10. Re:Undisputed? by EricTheGreen · · Score: 4, Insightful

    Normally very true. Muddled somewhat in this case by the overall bland reputation of the Oracle products that overlap BEA's (is anyone even using Oracle's app server for something other than supporting Oracle apps these days?)

    My guess is BEA's customers are in for more of a re-branding than a product EOL: many of the BEA stack component technologies would be folded into the Oracle product mix and renamed. I'm not convinced the BEA brand was a big draw for new business these days anyway, so it would be a manageable pain from Oracle's perspective. The biggest headache in this case may be getting BEA's current customer base to not cut bait and migrate once they see Oracle's product pricing, post-branding.

    One big EOL risk (IMHO) is the AquaLogic stuff, given Oracle's big push into SOA the past couple of years--Ellison, et al, may not want to eat that R/D.

    Not good times right now for the majority of BEA's staff though, in any event...

  11. Next Headlines by Deanalator · · Score: 4, Funny

    Any bets on the next few headlines today?

    I'm going for

    Sun buys Oracle
    Google buys Sun
    Google buys Microsoft

  12. Hmm by Quiet_Desperation · · Score: 2, Funny

    No Bea Arthur jokes. The world has truly moved on. *sigh* I'm old. :-(

  13. Re:Oracle is a bigger evil than Microsoft. by Kalriath · · Score: 4, Funny

    The person who modded this troll has clearly never used Oracle. Believe me, if there's a source of evil it's Oracle.

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  14. Re:Undisputed? by FreeBSDbigot · · Score: 2, Informative

    > declare that the official upgrade path for their software is onto your own product's software track

    That probably is the norm, but Oracle is not doing this to PeopleSoft & JD Edwards customers. At least, they're not pushing hard and fast. They've announced (and in fact have been delivering) multi-year support, including non-Oracle-Applications (i.e., "Fusion") upgrades.

    --
    Orange whip? Orange whip? Three orange whips.
  15. Re:Srsly by sdpuppy · · Score: 5, Interesting
    Arrgh.

    OK, sounds about right.

    But for those to whom the reply sounds like a foreign language (on the order of one like Guugu Yimithirr), perhaps an example is in order.

    From my understanding:

    You're at an ATM machine. The front end is what you work with - the user interface that you are telling that you want to transfer $xx to another account.

    The back end are the data bases that receive all that information

    The middle ware is what makes sure the transaction goes through without error even though computers are crashing left and right and network connections are being chewed upon by evil squirrels.

    Early days it was easy to see who had BEAS middleware on the web.

    Fill your cart with junk, and hit the browser back button, not the screen back button.

    If you lost everything in the cart, most likely it was IBM middleware.

    If everything still worked no matter how much abuse you gave, BEAS software was working behind the scenes.

  16. Re:Standards by durdur · · Score: 2, Insightful

    It would be nice if this were true, but for non-trival use cases there isn't any such thing as a "standard" database - they are not really compatible or feature equivalent - although you can hide the differences quite a bit. Ditto for application server. Stray into advanced areas and you will find differences in the vendors' tech stacks. So there is some inevitable cost to changing stacks. Some developers do target multiple different stacks and keep their software compatible with all of them but that costs, too.

  17. TIBCO is the logical next candidate to be bought by CurtMonash · · Score: 2, Interesting
    --
    To err is human. To forgive is good system design.
  18. Re:Undisputed? by Jearil · · Score: 2, Interesting

    (is anyone even using Oracle's app server for something other than supporting Oracle apps these days?)


    Oh unfortunately yes. I work for a New York State agency and we use almost exclusively Oracle Application Server. I say almost because my unit is the only one using something else, and that something else happens to be BEA. This is actually quite distressing, because I've seen what my collegues have to deal with with OAS and they always tell me how lucky I am to be using Weblogic for my J2EE server, along with IntelliJ IDEA for my IDE (They all have to use Oracle JDeveloper). We're also the only unit using MySQL at all, everyone else uses Oracle DB. Normally I'd say that at least for DB Oracle would be in fact the better choice, however our Database unit makes that not the case.

    In fact, the entire application development department is being siderun by the database department, hence the mandate that everything that can be Oracle, must be Oracle (even if it's shitty). This buyout is just one more thing that they'll try to use to pull our area over into their control... I think they must resent that we're not moving as slow as the rest of the organization.

    Coupled with the buyout of MySQL this morning, my job just became a lot shakier. I hope to god that Oracle drops the horrid turd that is OAS and adopt Weblogic as their standard, but if it went the other way around because some executive at Oracle is high (which I find fairly likely every time I'm in contact with Oracle staff), it will make life around the office really annoying, and far less productive.

    Work tomorrow when I tell the bosses will be interesting at any rate.