Welcome!

Agile Computing Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Liz McMillan, Andy Thurai

Related Topics: Microservices Expo, Java IoT, Weblogic, Open Source Cloud, Eclipse, Recurring Revenue

Microservices Expo: Article

Oracle-BEA Combination Is a Stronger SOA Alternative to Microsoft and .NET

Ellison sees it as strengthening his position as a strategic software vendor up against IBM, SAP, Sun, Microsoft and open source

It said this morning that it had reached a compromise price with BEA and that the acquisition would go through after all, having been resisted by BEA, demanded by BEA’s biggest stockholder, the dangerous Carl Icahn, and walked away from by Oracle.
 
Oracle is going to pay $19.375 a share, less than the $21 that BEA wanted but more than the $17 it put on the table back in October.
 
That works out to $8.5 billion, less the $1.3 billion that BEA has in the bank, as Oracle pointed out, for a grand total of $7.2 billion cash to be paid for by a combination of cash on hand and a short-term loan.
 
Oracle has $8.4 billion in the bank so the financing’s no problem.
 
Its original bid valued BEA at roughly $6.66 billion.
 
The conference call this morning added nothing in the way of back story or color. Oracle would take no questions.
 
BEA CEO and co-founder Alfred Chung said the BEA board – which Icahn accused of rejecting Oracle’s initial offer to entrench itself – “unanimously” decided Oracle’s sweetened deal was the “best way to maximize shareholder value.”
 
BEA looked for alternatives and found none. The sweetener is a significant premium to the $13 or $14 range BEA was trading at when Oracle first entered the scene and a 24% premium to BEA’s closing price yesterday of $15.58.
 
Icahn issued a statement this morning saying, “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.”
 
Evidently him and his 13% stake in BEA played a role in persuading BEA to accept less than it wanted. He had threatened a proxy fight.
 
The deal is expected to close by mid-year and Oracle projects that BEA will add one to two cents to its non-GAAP earnings in the first full-year after the close.
 
It is still unclear exactly how BEA will be integrated but Oracle CEO Larry Ellison described it as a “third major sales force.”
 
Ellison declared the deal a “great day for the Java community.”
 
Scale, he said, was critical to middleware and he cast the Oracle-BEA combination as a stronger Java/SOA alternative to Microsoft and .NET.
 
BEA’s widgetry is supposed to “significantly enhance and extend Oracle’s Fusion middleware,” bringing in complementary messaging and transition processing as well as increased vertical business such as BEA’s telco play and deeper penetration in regions like China.
 
Ellison sees it as strengthening his position as a strategic software vendor up against “IBM, SAP, Sun, Microsoft and open source.”
 
Ironically, Oracle’s on-again off-again best friend Sun this morning bought MySQL for $1 billion, positioning Sun as a direct competitor to Oracle’s core database business.
 
Even though MySQL is not the one-for-one Oracle replacement that, say, EnterpriseDB is, it will be the first time an open source database has had the leverage of a major industry player to use as a springboard.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (6) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
My Sequal 02/11/08 03:11:23 PM EST

EnterpriseDB is a scam

EnterpriseDB Rocks 02/11/08 12:11:39 PM EST

[Quote from MYSQLGURU: i bet you [EnterpriseDB], you dont have a sungle dollar in revenues]
Really ? How much have you got Mr. MYSQL ?
I'll happily take that bet !

Annoyed Reader 01/30/08 09:49:39 AM EST

Nice grammar!!! Doesn't anybody know how to write? Don't editors care anymore? This is taken from the above article:

Evidently him and his 13% stake in BEA played a role in persuading BEA to accept less than it wanted.

HIM and HIS.....

MYSQLGURU 01/17/08 07:54:42 AM EST

what are your number mr enterprisedb? what are you guys geeks or businessmen? this is a numbers game, i bet you, you dont have a sungle dollar in revenues take a hike there then

bloatware 01/17/08 04:47:45 AM EST

"Even though MySQL is not the one-for-one Oracle replacement that, say, EnterpriseDB is,"
Its not a one for one performance replacement either. EnterpriseDB's performance and capability walk all over MYSQL in anything bigger than a couple of CPU's i.e. the Enterprise.
Is Sun planning a move into the home web page market ?

Oracle News Desk 01/16/08 03:18:08 PM EST

It said this morning that it had reached a compromise price with BEA and that the acquisition would go through after all, having been resisted by BEA, demanded by BEA's biggest stockholder, the dangerous Carl Icahn, and walked away from by Oracle

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...