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If Oracle Bought Every Open Source Company

An anonymous reader points out Glyn Moody's thought experiment: what if Oracle bought up the entire open source ecosystem? Who would win, who would lose? And how might an open ecosystem grow in the wake of such an event? "Recently, there was an interesting rumour circulating that Oracle had a war chest of some $70 billion, and was going on an acquisition spree. Despite the huge figure, it had a certain plausibility, because Oracle is a highly successful company with deep pockets and an aggressive management. The rumour was soon denied, but suppose Oracle decided to spend, if not $70 billion, say $10 billion in an efficient way: how might it do that? One rather dramatic use of that money would be to buy up the leading open source companies — all of them."

45 of 237 comments (clear)

  1. Some areas would have no interest by ducomputergeek · · Score: 4, Interesting

    Somehow I doubt they'd be buying up projects like Drupal, Wordpress, or Joomla. But I could see them buying up companies like Jaspersoft, Openbravo, etc. that produce enterprise grade OSS tools used for BI, ERP, etc. which does fit nicely into their business market. Although seeing Oracle in action in the past, it would likely be that they would buy then slowly let the products wither and die to they are no longer a threat to their core business.

    --
    "The problem with socialism is eventually you run out of other people's money" - Thatcher.
    1. Re:Some areas would have no interest by IMightB · · Score: 3, Insightful

      The problem with that is since they are Open Source, the project forks and continues on Business as Usual. Look at MySQL for an example. Even if the codebase officially known as MySQL withers on the vine, there's still at least 2 forks I can think of that are viable.

  2. Does it matter? by Monkeedude1212 · · Score: 5, Insightful

    Then you'd get $10 Billion dollars worth of Forks starting off the last release, and everything would be the same as usual, except that Oracle would have acquired a lot of software.

    It would cause a ripple for a while, like it has with MySQL, but trust me, in time - we'll have found another FOSS solution. The same thing would happen elsewhere.

    1. Re:Does it matter? by FooAtWFU · · Score: 4, Insightful

      It matters because when you buy the "leading open-source company", you also buy the programmers, many of whom will go on to work for Oracle. An open-source project without any developers is probably much better for its users than a closed-source project without developers, sure, but it's still a major setback.

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    2. Re:Does it matter? by ducomputergeek · · Score: 4, Informative

      We started using PostgreSQL back when Sun bought MySQL. And I can't say we've had any real complaints and actually have found PostgreSQL to be easier to maintain with less table corruption, etc..

      --
      "The problem with socialism is eventually you run out of other people's money" - Thatcher.
    3. Re:Does it matter? by Angst+Badger · · Score: 4, Interesting

      It would cause a ripple for a while, like it has with MySQL, but trust me, in time - we'll have found another FOSS solution.

      I'd say that Oracle's acquisition of MySQL has done a lot more than cause a ripple. If I wasn't already dependent on it, I wouldn't even consider it for future development, and I am eagerly waiting for one of the forks to a) mature, and b) develop enough of a track record to risk depending on it for the long term, or c) to settle on one or more alternatives such as Postgres and/or some of the so-called NoSQL solutions. The situation with Java isn't as bad, as Java has a base of users (and the enormous anchor of IBM's investment in Java solutions) that is orders of magnitude greater than MySQL, so the leverage Oracle can exert is greatly reduced, but it's still a concern.

      Forks -- if you're going to build the necessary developer infrastructure around them and properly support and maintain them -- take time and, more often than not, money. And as a user, transitioning from one ordinary version to another is often expensive, never mind transitioning to a forked version that, more often than not, involves significant changes from the original trunk, MySQL and its descendants being a particularly illustrative example. It's not the end of the world, but it is often a very big deal.

      At the end of the day, if an open source project you depend on is maintained by a for-profit company, and the project is sufficiently valuable, someone will eventually come along and buy its maintainer. And if the project is cutting into the bottom line of the buyer, as was the case with MySQL and Oracle, you can be sure that the new owner will make the change as disruptive as possible. It's a basic vulnerability that is built into the commercialization of Open Source. Whether it's a significant risk with any particular project will vary, of course, but it's always there, and the ability to fork is not a panacea.

      --
      Proud member of the Weirdo-American community.
    4. Re:Does it matter? by tcopeland · · Score: 4, Informative

      > We started using PostgreSQL back when Sun bought MySQL

      Right on. And PostgreSQL is about to remove one of the last big barriers for using it - streaming replication is coming in 9.0. Huzzah! I was just listening to a "Rails on PostgreSQL" talk from Pivotal Labs and that was cited as one of the few places where MySQL was ahead... not for long...

    5. Re:Does it matter? by DerekLyons · · Score: 4, Insightful

      It matters because when you buy the "leading open-source company", you also buy the programmers, many of whom will go on to work for Oracle.

      Not just their programmers - but also their customer base.
       
      Despite the anarchistic "Everyman is own IT department" fantasies of the FOSS movement, most companies and individuals just want something that works. The days when every business, large and small, had to have management, staff, and gurus to roll their own and keep them rolling are viewed with horror as the 'bad old days'. The idea that the software that keeps their business ticking depends on 'some guy in a basement' and his friends are viewed as equally terrifying. (Which is why these FOSS companies exist in the first place.)
       
      Slashdot (and by extension the FOSS movement) really needs to realize that in the real world, people and businesses don't jump to forks for political reasons and in fact are cautious about changing things at because the costs (in actual money) and disruptions that accompany such jumps.

  3. More FOSS would fork from the bought up projects by petes_PoV · · Score: 5, Insightful
    Open source is not a finite resource. You can't buy *all* of it. You can only buy the ones that are successful today. If (to take an example) Oracle made offers of employment that they couldn't refuse to the main programmers on The Gimp, then anyone who didn;t like the "selling out" (possibly because they didn't get made an offer) could just fork the last non-commercial version and continue down their own particular road.

    Because of that, it would be very difficult for Oracle to monetize their purchases. Certainly to the degree that made any sort of financial sense and maybe not to the satisfaction of the shareholders.

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
  4. Re:Hi. I'm an open-source developer. by Monkeedude1212 · · Score: 2, Funny

    We'll start the bidding at -$5.00

    (Yes, you pay us to take you over)

  5. OSS Programmers Finally Get A Payday by theshowmecanuck · · Score: 2, Insightful

    Then the programmers of the open source software projects will finally get a decent payday without some prick forking their code and diluting their potential customer/profit pool so he/she can't make a living. And then having the mother forker fucking up the code and giving them both a bad name. Then the OSS developer will be able to afford to fork the original and enhance the original to really make a quality product that can be sold and used until another prick forks his/her work and dilutes the potential customer/profit base. Or perhaps until Oracle decides to use and enhance the original.

    --
    -- I ignore anonymous replies to my comments and postings.
  6. Do they need "all of them"? by bsDaemon · · Score: 3, Insightful

    Buying "all" open source companies would be a bit over-dramatic, but I could see perhaps a few strategic buys. For instance, buying RedHat. Oracle has their own respin of RHEL, but rather than being at the mercy of the release schedule a la CentOS, buying RH would give them more control over the pace of things, not to mention getting a lot of major contributors on the books. RedHat also owns JBoss, which might be worth their time and money to acquire, too. I doubt that it'd happen though, which is probably a good thing.

    1. Re:Do they need "all of them"? by bsDaemon · · Score: 3, Interesting

      All the more reason to acquire JBoss, loot it for the good stuff, integrate it into their other product, and maybe kill off JBoss, or just milk it for a while and double-dip. But an Oracle acquisition of RedHat and its assets at least makes some sort of sense (and they can afford it. RH has like, a $5bn market capitalization, so Oracle will have plenty of change left over) unlike, say, Gimp, or a bunch of random crap like other people seem to be floating as examples of why the concept of the article is stupid.

  7. Suddenly by toxygen01 · · Score: 5, Insightful

    ... everyone would start developing opensource.

  8. a large portion aren't buy-able by Trepidity · · Score: 5, Insightful

    Oracle can only really effectively buy open-source companies of the MySQL variety: where the vast majority of development is done by one, medium-sized, for-profit company closely associated with the project. Stretching a little more, they can buy multi-project companies on the lower end of "large" that do a lot of open-source development, like Sun.

    But a lot of open-source is done by groups that deviate to either side of that. Either they're more distributed open-source projects with no central entity to buy in the first place, or they're run by very large companies that Oracle couldn't possibly buy, like Google and IBM.

  9. What If . . . by hardburn · · Score: 5, Funny

    What if squirrels had wings and shot cruise missiles out of their tail? That's about as grounded in reality as Oracle buying up everything.

    --
    Not a typewriter
    1. Re:What If . . . by afabbro · · Score: 2, Insightful

      What if squirrels had wings and shot cruise missiles out of their tail?

      Well, that would be awesome, obviously.

      --
      Advice: on VPS providers
    2. Re:What If . . . by ozbird · · Score: 2, Funny

      "Again?! That trick nevers works."

  10. Re:Impossible to do by PalmKiller · · Score: 2, Insightful

    Whoa there, if I were a major contributor, and one of those dropped a few million in my pocket...or heck even enough to just pay off everything I owe, I might decide to stop developing it. As you probably know, if the major contributors of a project abandon it quietly, sometimes just the time lapse with no progress will kill off the project. My point is everything has a price...you just gotta know where to inject the funds.

  11. Hmm by buddyglass · · Score: 5, Interesting

    I've always questioned the logic of buying an open source company. What do you really get? You don't get the IP since that's open sourced anyway. You don't get the employees since they can always leave. You maybe get some customers, but then those guys can always switch to a fork of the project. Potentially a fork that's being run by the same developers responsible for the original project.

    1. Re:Hmm by bhlowe · · Score: 3, Insightful

      Buying an open source project might: 1. Keep the developers from working for a competitor. 2. Keep the developers from suing the purchasing company over some form of GPL violation. 3. Allow the purchasing company to integrate the IP into more products/services 4. Slow the momentum of future open source development of the project (by co-opting the main developers, writing in do-not-compete clauses, etc.)

    2. Re:Hmm by mmkkbb · · Score: 3, Insightful

      You DO get IP, even if it's free software. Even with the GPL, you could stop distributing old versions and re-license future versions if you control the copyright. Open source projects aren't alone in having employees that will leave in an acquisition, and it's clear that whether everyone leaves after an acquisition is almost entirely dependent on the specifics of the deal. You get revenue from support contracts, and your customers aren't going to switch to a new branch just because of a change in ownership if the new owners are sympathetic, and a new branch may not even come about.

      Yeah, there's risk that any of your problems could happen but everyday business is a risk too.

      --
      -mkb
    3. Re:Hmm by mlts · · Score: 2, Interesting

      There is always support. For example, if an OSS company makes and supports a product, it gets bought out and the company dissolved, then even though the product may be forked, there will be no way for customers to get support for the product. Of course, the ex-employees can form around the forked project, but it will take time and effort rebuilding the customer base and getting the support contracts back.

    4. Re:Hmm by TooMuchToDo · · Score: 2, Informative
      Unless your open source company is in California, in which case your non-compete is void as a matter of law.

      http://en.wikipedia.org/wiki/Non-compete_clause#California

    5. Re:Hmm by Mongoose+Disciple · · Score: 2, Interesting

      Yes, but... if we're playing the "what could Oracle do by throwing ridiculous amounts of money around" game, there are probably ways around that.

      For example, Oracle buys up most of the top contributors to PostgreSQL by offering them much better salaries/benefits to work on OraclePostgre than they could get in any other way, and additionally offers them $X giant bonus or stock options or what have you if OraclePostgre has Y% market share by some metric in two years -- such that they legally could choose to compete with themselves in an open source fork, but would be throwing away big piles of money to do it.

      You can't buy everyone, but probably it's not even very expensive in the grand scheme of things to buy enough of the people that matter.

  12. Re:As an Oracle DBA by reallyjoel · · Score: 2, Insightful

    Oracle is well known in the business (of making money) to have a very good, large and agressive sales force, and that is what have made them large and successful, not the quality of their products.

  13. Re:Hi. I'm an open-source developer. by igny · · Score: 4, Funny

    We'll start the bidding at -$5.00

    (Yes, you pay us to take you over)

    I bid -$10.00.

    --
    In theory there is no difference between theory and practice. In practice there is. - Yogi Berra
  14. How do you buy open source? by RichMan · · Score: 2, Interesting

    Please explain how you buy open source. The source code is out there in the wild. New developers appear every day.

    If you want to play the monopolist that will invite new people to step in and enter the market.

    That is the beauty of open source. It is the ultimate opposition to monopolist behavior as it makes the barrier to entry effectively zero.

    Of course there are the usual costs or starting a business but with open source there are no real barriers to market entry.

  15. Re:Hi. I'm an open-source developer. by chemisus · · Score: 3, Funny

    do i hear a -$15.00?

  16. Re:Hi. I'm an open-source developer. by Surt · · Score: 3, Funny

    So now we're in a price-is-right bidding war, trying to find the largest sum that Gordonjcp can afford to pay to have his company taken over, without going over (after all, if he can't pay up, it'd really be wrong of him not to reject your bid). -$50,000.00!

    --
    "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  17. Re:Hi. I'm an open-source developer. by jgagnon · · Score: 4, Funny

    I bid negative infinity squared!

    Wait... erm... nevermind.

    --
    Remember to maintain your supply of /facepalm oil to prevent chafing.
  18. 'Acquire' free software? by bluhatter · · Score: 3, Funny

    $10B for open source software? They do know they can download it for free... right?

    --


    bluHatter
  19. Re:Hi. I'm an open-source developer. by digitig · · Score: 2, Insightful

    I assume you have done due diligence, and made sure the company debts don't swamp the negative sums you're bidding...

    --
    Quidnam Latine loqui modo coepi?
  20. sun buyout by sageres · · Score: 2, Insightful

    I still can't comprehend how, what economic forces could have allowed Sun to be in position to be bought over by Oracle, and not the other way around. Consider: Sun had EVERYTHING that Oracle had and more: 1. Its own database systems 2. Its own java application servers 3. Its own web servers /w LDAP servers 4. And on top of that pile up Java, Sparc / Solaris, various Java-based tech, etc. 5. Don't forget the Sun VM. Now look, Oracle is killing many of the old Sun projects. Looking Glass has gone to dust (maybe even before the purchase), mysql is suffering and most likely will die. I found out that they will no longer manufacture sparc desktops, leaving us the sweet memories of blade150 running Solaris9. Oh and OpenSolaris -- already in danger of loosing its community. What would happened? Oracle turns out to be more evil then Microsoft ever was.

    1. Re:sun buyout by eln · · Score: 2, Interesting

      Sun had everything but a halfway competent management team that knew how to make money. Oracle, on the other hand, has a fantastic management team that specializes in making truckloads of money. You can have all the cool tech in the world, but if you can't make money with it you're doomed.

  21. Re:As an Oracle DBA by BigJClark · · Score: 4, Insightful


    You must be a salesperson. I'm not a technology zealot, but Oracle is by far the most superior product in the market for mid ot large size datasets serving mid to large size queries (carefully chosen words ;) ). I realize you can polish and sell a turd, but Oracle's scaling, robustness, and attention to detail regarding the optimization of its core engine, is what sells it, and has for the past ~30 years.

    Now MS has the exact same yammering salespeople who drive me nuts when they tout the strength of their package, but I've explored it with the intimate detail that only a DBA can.

    Read my lips: Its crap.

    When you start to pull away from the sales pitch, super easy install, and drop and go fascade, you quickly unveil a half working SQL engine, a busted backup model, and an internal engine that turns itself into muck heaven forbid if anybody hit it with any sort of large query.

    Sorry, its the Oracle DBMS engine that has made them the big bucks. Don't even get me started on Oracle forms and reports.

    --

    Hi, I Boris. Hear fix bear, yes?
  22. 'Open'Solaris dying by GoNINzo · · Score: 2, Insightful

    If they treat any of them like they've treated OpenSolaris, then I'd say they would die a slow death.

    At this point, the last release was June 2009. Development has stopped being exposed to the outside world, we were expecting a May release, and we're going on August now. There still has not been official announcement by Oracle on this topic either.

    While OpenSolaris is not a true open source product, it has been mistreated since the Oracle take over. It is unclear why there has been nothing said on it, but I'd rather take a project death at this point than this continued silence. Several key people have left to move onto other projects as well, though others are saying that development is still continuing. And worst of all, it would be a pain in the ass to fork because of their particular license design choice.

    The forums have been rather full of people complaining about it as well. Especially after the OpenSolaris board has threatened to kill itself off if Oracle doesn't make some key decisions.

    Just bad news all around. And it would be so easy to fix too, just by giving us an official statement on it's future.

    --
    Gonzo Granzeau
    "Nothing the god of biomechanics wouldn't let you into heaven for.." -Roy Batty
  23. Re:As an Oracle DBA by ahmusch · · Score: 2, Insightful

    And Oracle in version 7 had a character based installer that didn't require X. And there's still no good reason for Oracle to require X for installation and installation alone.

  24. forking doesn't solve all the problems by farble1670 · · Score: 5, Insightful

    i'm very tired of hearing "i'll just fork", or "you can't buy an open source project" whenever this comes up.

    most OSS projects are heavily funded by commercial outlets, and most often its a single outlet. you can buy an OSS project by buying the developers, or in other words buying the mindshare. whether they quit after the acquisition with bonuses tied to no-compete clauses, or whether they stay on and get put onto other projects, they are gone for the most part.

    sure, it's theoretically possible that a troupe of new developers will swoop in and carry on, but that just doesn't happen, in most cases. developers are not 100% portable. that means that it takes a gifted developer to come in and take over a code base designed by someone else. in most cases, you get spot fixes that don't see the overall vision, resulting in increasing bugs and a code base that eventually must be re-written.

    and, you rarely get gifted developers with such an interest. working with someone else's vision is not fun. building your own vision is. why would a gifted developer use their nights and weekends to carry on someone else's vision?

  25. Re:Impossible to do by thesandtiger · · Score: 3, Insightful

    Exactly. For some people, OSS is like a crusade, but for many others (most of the people doing the heavy lifting, especially at companies that would be bought) I'm betting it's a paycheck.

    For a "mere" $10 billion dollars you could just pay key people a few million each to stop working on products in whatever field and you'd have exactly the same kind of smothering effect on things as you would if you spent $70 billion to buy out the companies.

    For anyone who isn't ideologically driven to the extreme or independently wealthy, I'm going to say being offered $1-10 million to work on something else or even just stop working would be _quite_ effective.

    --
    Since I can't tell them apart, I treat all ACs as the same person.
  26. Obligatory Obi-Wan by lotho+brandybuck · · Score: 2, Interesting
    As if millions of voices cried out in terror....

    Seriously, what I'd like Ellison to do, is really support openoffice. Improvements, cleanups, Java exorcism, and fonts...

    Larry, everybody thinks Bill has more money than you! Bill is a household name, and nobody (outside of the techies) knows who you are. You can compensate with big yachts and planes and adventures, but you'll never be as big as Billy until you destroy the MS lockin... Office!

  27. This won't happen. by CherniyVolk · · Score: 2, Interesting

    I think the author of the post forgot about the FTC investigation into Oracle purchasing Sun Microsystems, because of the Open Source interests that would be acquired specifically MySQL.

    This says one thing, the FTC recognizes FSF/FOSS as a market force.

    Should Oracle, or any other company for that matter attempt to buy up any commercial support for FOSS, I believe the FTC and Governments around the globe would have them in court before the transaction could take place. Their 70 billion will be drained from their coffers into the bonus checks of all those law firms.

    Oracle is an IT company, who has had the luxury if evading almost every 'war' this industry has seen. It's what makes them so scary in a way, but it also allows them to maneuver under the guise that there's no historical reasons to over react. They realize, I'm sure, that all their monies come from *us*. Who else is going to recommend Oracle? Expensive, Oracle? They aren't in the position of Microsoft, who can disregard the industries brightest minds because stupid people keep buying computers with Windows installed. Oracle made their zillions, in part, from actually appealing to the people who know a good database when they see it.

    Oracle and the world witnessed this community eat our own, SCO. So I hope they recognize we really do believe in what we preach and will refrain from anything stupid. I think we are a tad apathetic towards Oracle's new toys, but we are watching and a little cautious and so are other people. Had Microsoft tried to buy Sun, we would have drawn guns cocked and loaded, Oracle... we checked to see if we had ammo and sat down to see what happens.

  28. Re:As an Oracle DBA by Anonymous Coward · · Score: 2, Insightful

    As a Microsoft DBA, I repeat everything you just said, only with the two products switched. You see, fanboyism is fucking gay, no matter what product we're talking about. Stop it.

  29. Quick question by lennier1 · · Score: 2, Interesting

    While they're at it why don't they buy SCO as well and end that crap too?

    1. Re:Quick question by mqduck · · Score: 3, Insightful

      Because it's much more fun watching SCO go bankrupt.

      --
      Property is theft.