Can Sun Make MySQL Pay?

AlexGr submitted a nice followup to last weeks billion dollar Sun buyout of MySQL. He notes that "Jeff Gould presents an interesting analysis in Interop News: How can an open source software company with $70 million or so in revenue and no profits to speak of be worth $1 billion? That's the question Sun CEO Jonathan Schwartz has been trying to answer since he bought MySQL last week. Like most commercial open source companies, MySQL makes money by enticing well-heeled customers to pay for an enterprise version of its product that comes with more bells and whistles than the community version it gives away for free. It appears though that the additional features of the Enterprise version are not enough to compensate for the revenue-destroying effects of the free Community alternative. What else could explain the surprising fact that MySQL has quietly filled out its open source portfolio with a closed source proprietary management software tool known as Enterprise Software Monitor?"

Comments

Re:Maybe it is not about Sun making money

[Tranzistors]

WITPOUAATTDIKPWIWNBUITSEA - What is the point of using ad-hoc acronym, then to dereference it, knowing perfectly well it will never be used in that sense ever again?

Re:Why should this be a surprise?

[TheRealMindChild]

I think it comes down to one half of the brain fighting the other. On one side, you know the free software/support model potentially is a win for everyone. But the other side is simply taken off guard by it... even though deep down inside you knew what you were going to get, up front it seems to be a surprise.

Similar to that hot chick you have been chatting up for months online... when she told you "I am a little big, but cute", deep down, you know she is a cross between a human and a hippo, but when you finally meet her, you want to dig your eyes out with a mechanical pencil.

I didn't go to business school, but...

[spiritraveller]

Jeff Gould presents an interesting analysis in Interop News: How can an open source software company with $70 million or so in revenue and no profits to speak of be worth $1 billion? That's the question Sun CEO Jonathan Schwartz has been trying to answer since he bought MySQL last week. Wouldn't it seem like a good idea to answer those questions BEFORE spending a billion dollars?

Re:I didn't go to business school, but...

[The One and Only]

Wouldn't it seem like a good idea to answer those questions BEFORE spending a billion dollars?

I can tell you don't have an MBA!

Re:Why should this be a surprise?

[nozzo]

yeah but in that case you would just switch the lights off and think of England