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Preston Gralla's picture
Preston Gralla

Seeing Through Windows

Is Europe's love of open source Microsoft's best friend?

Microsoft has often been pilloried by European governments and regulators who favor open source technology over proprietary software. But Europe's love of open source software may be one of Microsoft's biggest allies in the company's fight against Oracle.

The European Union has formally objected to Oracle's bid to buy Sun for $7.4 billion, and may end up blocking the sale. The reason: Sun has a unit that manages the open source MySQL database, and the Europeans worry that Oracle will kill it because they say it competes against Oracle's proprietary database software.

MySQL doesn't really compete against Oracle's often monster-sized databases, but it does compete directly against Microsoft's SQL Server. So if Oracle buys Sun, it's unlikely that the company would kill or starve MySQL. More likely, Oracle would pour more money into it, to challenge SQL Server.

So Microsoft is certainly very happy, at the moment, that the European Union is turning a gimlet eye on the Oracle-Sun deal. Microsoft likely considers the European Union action fair payback against Oracle, because Oracle in the past lobbied the European Union against Microsoft for the very reasons Oracle's deal may be blocked.

The New York Times sums up the irony of the situation this way:

The E.U. issued formal objections to the purchase on Monday, citing concerns that Oracle, a leading maker of corporate database software, could slow the growth of an important open-source database product, called MySQL, which is owned by Sun.

Oracle immediately poured scorn on the decision, saying it was based on "a profound misunderstanding" of the software market.

Ironically, Microsoft used to make much the same argument when it was defending itself in Brussels against complaints from industry groups in which Oracle played a leading role.

The deal isn't yet blocked. A hearing is scheduled for November 25, and a ruling is due on January 19. Here's one time Microsoft is silently urging on the European Union to stand up for open source.

What People Are Saying

"...European governments and

"...European governments and regulators who favor open source technology over proprietary software..."

Can you prove that? Or what happened with the high scale anti-monopoly process "Netscape" against Microsoft in the US and did Europe not reacted more consequently. Did the measures of the US juridical system really change anything?

Of course a government that has the headquarters of a big company on its soil may be inclined to react in a different way.

Is it just me?

Or is something else going on here? Like Java ... SAP ... ?

I mean, Oracle and SAP are fierce competitors in the enterprise application and business intelligence spaces right? And SAP uses Java too. And SAP's HQ is in Europe.

Could this be EU protectionism of a sort?

I'd suggest that there are

I'd suggest that there are several things "going on here".

One is the issue of Oracle and MySQL. Though they compete directly only in a limited way, controlling both the market-leading "large" and "small" databases is certainly the kind of thing that might raise questions.

Another, as SAP has noted, is the matter of Oracle's potential control of Java.

Yet another, and perhaps the largest, is what appears to have been Oracle's unwillingness even seriously to engage with the European competition authorities.

MySQL

Another dimension of MySQL relevant here is it's European roots, i.e., Sweden. And it's subsidiaries, one on Germany.

Now, there is absolutely nothing wrong with this. And the U.S. has also engaged in protectionism, e.g., China, no?

EU protectionism is likely a factor here.

"One is the issue of Oracle and MySQL. Though they compete directly only in a limited way, controlling both the market-leading "large" and "small" databases is certainly the kind of thing that might raise questions.

Heaven forbid that a *real* competitor to Microsoft SQL Server emerge in the SMB space.

And in the enterprise space, Oracle is indeed the leader, but hardly a monopolist. Their market share is roughly twice that of each IBM's DB2 and Microsoft's SQL Server. And IBM and Microsoft are neck-in-neck. And don't forget Teradata and Sybase. And for open source, PostgreSQL.