|By Maureen O'Gara||
|November 27, 2009 11:30 AM EST||
Mergers & Acquisitions on Ulitzer
The United States Senate waded into the Oracle-Sun imbroglio Tuesday.
Fifty-nine senators from both sides of the aisle led by one-time presidential hopeful John Kerry (D-Mass) and perennial presidential pretender Orrin Hatch (R-Utah) signed a letter to the European Commission asking it to wrap up its investigation of the Oracle-Sun merger as soon as possible pleading Sun's precarious financial position and its inability to continue to employ thousands of people endlessly under current conditions.
The senators - there are only a hundred of them - tried reasoning proportion with the EC saying, "It is our understanding the Commission is concerned about competition in the database software market. However, we have been informed by Sun Microsystems that their subsidiary, which competes in this specific market, generates only €17 million in revenue and that the same market has competitors with capitalizations of tens of billions of Euros."
In an explanatory statement accompanying the letter Kerry said, "The deal between Oracle and Sun was announced in April and seven months have gone by without a resolution. Continued delay of the European Commission's decision on clearance threatens thousands of American jobs, so we felt compelled to ask for a speedy resolution. The EC is within its sovereign rights to set the rules for operation in its market, but with our Department of Justice having made a compelling case that the merger does not pose a threat to competition, it is fair to ask the EC for the basis on which a delay on decision making is warranted and to make a decision one way or the other."
Hmm. "One way or the other."
Odd thing about the delay is that Oracle, which has complained to just about everybody about the EC's foot-dragging, just asked for and got more time ostensibly to develop its arguments.
What use six more days will be to Oracle is a question. The regulator seems intent on blocking the merger unless Oracle divests MySQL, which - come to find out from the senators' letter only generates a pissant $25 million in revenue, half of what was generally supposed when Sun bought the thing for - be still, my heart - a frigging billion dollars.
Senator Hatch's statement was a bit testier and mirrors more accurately American public option.
"I have become increasingly concerned about the growing body of evidence that foreign regulatory agencies are unfairly using their review processes to impede the business of American corporations," he said. "This transaction has been thoroughly reviewed by the United States Department of Justice, which has decided to take no action. Therefore, I hope the EC will quickly conclude their investigation into this transaction."
The Senate's letter is the second time Washington has commented on the EC's intransigence on the Oracle-Sun merger.
On November 9, the day Sun got the EC's reportedly 155-page statement of objections, the Justice Department issued a statement saying that it had looked at the MySQL issue and concluded that "the proposed transaction is unlikely to be anticompetitive."
There are plenty of open source and proprietary databases, it said, and so the consumer is unlikely to be harmed. Plus there's a large community of MySQL developers and users with the expertise to maintain, improve and support it.
Such a thing seems to make no never mind with the EC, which thinks Oracle will adopt a licensing and development strategy that prevents MySQL from cannibalizing its revenues even though hasn't happened yet and they're in two separate markets, as Oracle has maintained.
The DOJ's tone was civil - and although its statement hints - as many people surmise - that the EC is bent on a political agenda having little to do with antitrust issues, relations between the two bodies have yet to degenerate into the prickly tension that marked their affairs after the EC blocked the GE-Honeywell merger a few years back.
Still with each passing day the EC, widely seen as a victim of misguided principle, makes itself a bigger target for the critics who see it as a protectionist haven for every malcontent competitor who can't cut it in the marketplace; who wonder what bright boy made it judge, jury and executioner; who are uncomfortable with its 16th century Star Chamber-like level of secrecy and its guessing game set of rules; and who question its objectivity, which was recently criticized by its own overseer after reviewing the Intel antitrust case.
European lobbyist Florian Mueller, who's working for MySQL creator Monty Widenius on opposing Oracle's acquisition of MySQL - though both men made a killing when Sun bought MySQL for a ludicrous billion dollars - claims the Senate gambit isn't going to work and that the "revenues argument is pointless."
"Twitter had zero revenues last year but no one could argue it wasn't a major force in the market," Mueller said, suggesting that the 59 senators should send Larry Ellison a letter asking him to commit to divesting MySQL so he can close the transaction quickly.
"Oracle could have a deal any day of the week by giving up MySQL," Mueller said.
However, John Briggs, an antitrust expert and an old Brussels hand, told Reuters the pressure from the US senators could affect the EC's decision. In his opinion it "will have a hard time ignoring this."
OK, so other than Thanksgiving why did Oracle really want more time?
Apparently to bring pressure like it just did with the senators.
And it got the hearing that was scheduled for November 25, the day before Thanksgiving, shifted to December 10 according to Reuters.
Apparently Oracle could have asked for more than six days. Apparently it was the one who asked for the six-day grace period. The God of the Book of Genesis created the world in six days. Does Larry actually expect to change the EC's mind in an extra six days? God, people say, had an easier job.
Apparently Oracle blew through a November 20 deadline to come up with a remedy. And it now has at least until November 30 to come up with one and avoid an automatic three-week extension of the EC's final decision, whose deadline is now January 27 instead of January 19. So if Oracle doesn't come up with an acceptable solution we could be talking about a final decision on February 17, close to 10 months after Sun and Oracle cut their deal. Meanwhile, the delay is said to be costing Sun a $100 million a month.
Former Ellison lieutenants swear that Larry ain't as perturbed about the EC's delay as Oracle lets on, that he ain't gonna pay the nominal $7.4 billion ($9.50 a share) he offered for Sun (nominal less the money Sun has in the bank) and that he's going to renegotiate the price down complaining that Sun has been materially damaged by the EC's dicking around.
They also say that Ellison could give a hoot about MySQL - it would be nice to have and he doesn't want a serious competitor to have it - but it's not the reason he's interested in Sun. Java, Sparc, Solaris and the Sun installed base is what he's after.
It's hard to imagine Ellison backing off from this fight but, if he wearies of it, he might offer to dump MySQL into an open source project or foundation like, say, Eclipse, or maybe he just needs six days to cut a handshake deal with a company that won't do much at all with MySQL and distancing Oracle from the licensing control that seems to have the EC so perturbed.
It can't control who Oracle might spin it off to.
By way of revenge, if it goes to a player, odds are Oracle will then do whatever's possible to stomp that sucker flat - even if MySQL isn't a direct competitor of Oracle's database.
That said here's the Kerry-Hatch letter:
Chargé d'Affaires Angelos Pangratis
Acting Head of Delegation
Delegation of the European Commission to the United States
2300 M Street, NW
Washington, DC 20037
Dear Chargé d'Affaires Pangratis:
As fellow government officials committed to the principle that competition is the cornerstone of healthy economic growth, we would like to take this opportunity to share our thoughts with you as to the proposed acquisition of Sun Microsystems, Inc. by Oracle Corporation. In addition, due to Sun Microsystems' deteriorating financial condition and the possible negative effect on employment of the company's workforce, we respectfully request the European Commission expedite the completion of its investigation into this transaction.
The United States Department of Justice, after an intensive investigation, closed its inquiry into this transaction without taking any action. In fact, the Justice Department did not find documentary evidence that this acquisition would harm competition. We recognize that the European Commission has a sovereign right to thoroughly investigate transactions where corporations utilize the European Union's marketplace. Further, it is our understanding the Commission is concerned about competition in the database software market. However, we have been informed by Sun Microsystems that their subsidiary, which competes in this specific market, generates only €17 million in revenue and that the same market has competitors with capitalizations of tens of billions of Euros.
Unfortunately, Sun Microsystems' financial position has become more precarious and the Commission's inquiry has continued. Some have raised concerns over the company's ability to continue to employ its thousands of workers. Accordingly, we respectfully request the European Commission complete its investigation of this transaction as quickly as possible.
Thank you for your attention to this matter.
See http://kerry.senate.gov/cfm/record.cfm?id=320244 for all the signatures.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 30, 2016 02:00 PM EDT Reads: 3,054
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 30, 2016 01:30 PM EDT Reads: 1,128
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 30, 2016 12:00 PM EDT Reads: 4,113
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 30, 2016 11:15 AM EDT Reads: 1,343
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 30, 2016 11:00 AM EDT Reads: 2,575
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 30, 2016 10:45 AM EDT Reads: 2,060
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 30, 2016 09:15 AM EDT Reads: 2,386
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
May. 30, 2016 09:15 AM EDT Reads: 2,828
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 30, 2016 09:00 AM EDT Reads: 1,449
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 30, 2016 08:00 AM EDT Reads: 2,394
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 30, 2016 07:15 AM EDT Reads: 1,418
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 30, 2016 07:00 AM EDT Reads: 2,273
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 30, 2016 06:00 AM EDT Reads: 2,015
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 30, 2016 05:30 AM EDT Reads: 3,308
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
May. 30, 2016 04:45 AM EDT Reads: 3,336
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 30, 2016 03:15 AM EDT Reads: 1,546
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 30, 2016 03:00 AM EDT Reads: 2,094
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 30, 2016 03:00 AM EDT Reads: 1,403
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 30, 2016 02:45 AM EDT Reads: 2,543
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
May. 30, 2016 02:15 AM EDT Reads: 3,037