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?"
"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?""
They're offering better support. Haven't we always said that the rationale behind open source is you can offer the product for free, then offer paid support?
Why is it every time someone actually implements this, they're criticized?
How can an open source software company with $70 million or so in revenue and no profits to speak of be worth $1 billion?
:)
This is where you have to think outside of the box. There are some who believe that Sun may simply be the pawn of Oracle. Oracle could not buy MySQL directly because of anti-trust issues etc.. Not to mention, Sun and Oracle have been "strategic partners" for a very long time. However, another company could purchase MySQL to kill it off.
I am not saying this is exactly what happend, but I do think the above author and Dvorak make some good points. Disclaimer: IANADF - I am not a Dvorak fan
He misses the most obvious way of making Mysql pay and that is Java. If Sun goes down the same route that Microsoft is with Sql Server/.NET and integrates Java into Mysql, Sun gets a powerful new platform for the enterprise.
Those bastards!
Sun will make MySQL pay. Boy, will they pay!
I've pondered this as well. What makes Youtube worth ~1.5 billion? Certainly not the technology. Sun has bought developer mindshare. When you think MySQL now, you're going to associate it with Sun. As long as they don't destroy it, it will reflect well on a company that, till now, has been floundering.
According to Torvald's biography, Linus walked out of a meeting in the 90's that Sun had called with the open-source community because the license they were introducing didn't pass his muster. It is interesting to see Sun coming around.
Of course, I could be totally wrong and we could be looking at a storm on the horizon.
Free software *which is painful as hell to use*, paid support. If your software is well-documented, configuration is easy, and it isn't effectively broken in important respects... what do you need support for, again?
Help poke pirates in the eyepatch, arr.
TFA: "Sun would have to grow MySQL's revenues to $500 million per year to bring it into sync with the purchase price"
That's a 7X increase, no small potatoes, but if Sun is thinking long term (esp., hopefully, w/r/t international markets), I don't think this is as unlikely as the article writer seems to.
My turnips listen for the soft cry of your love
Actually, it has less to do with support and more to do with the fact that companies that develop commercial, proprietary, closed-source applications using MySQL are required to purchase MySQL Enterprise if they want to use MySQL. Otherwise, they have to look to completely free alternatives, such as PostgreSQL.
There are certainly customers that adopt MySQL Enterprise purely for the support, but I believe the majority of customers are using MySQL Enterprise for commercial purposes because they have no other choice if they wish to adopt the MySQL platform.
For he today that sheds his blood with me shall be my brother.
Perhaps it wants a db it can install for all the cheapskates who buy their hardware but don't want to fork out for an expensive db.
I have excellent Karma and I am not afraid to Troll it.
P/E.....P/E.
Apple's P/E is way out of whack (30's when most everyone else is teens to 20's). If the NASDAQ / DOW / S&P falls, those with higher P/E's fall faster.
http://finance.google.com/finance?q=NYSE%3AWMT
http://finance.google.com/finance?q=NASDAQ:AAPL
Layne
I can't see it or say any other way than "My Squirrel"
Having Sun rename a product is probably one of the worst things that could happen. I waiting for the launches of Sun Java System Database Enterprise Server and Sun Java System Database Open Source Server to happen any day now.
I think they are kidding themselves, because all the big software houses include hold-harmless clauses in their EULAs that would make it difficult to sue them for defects.
Gamingmuseum.com: Give your 3D accelerator a rest.
Personally, I find Postgres a bigger option to MySQL, which the author did not consider. Why Sun has bought MySQL when a database of that quality is already out there in the open source world, I don't know. We'll have to see.
just guessing again, but I imagine that the reason Sun paid $billion is because they can (imagine Sun's management saying "We've got all this cash... What can we buy!")
a large part of the $billion is going to go on the books as "goodwill" - i.e. they can't put a hard number on the value of the "MySQL" brand but it is worth something
It still looks like some form of MySQL optimized for Solaris on Sun hardware is the best hope of actually making a profit on the purchase
but I'm wrong a lot
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