advertisement
advertisement

This is page 3 of:

Analysis: Oracle’s Sun Acquisition May Have Little Retail Impact Initially

April 23rd, 2009

Tedd Ladd, a senior PR manager at Microsoft, posed a self-serving—but interesting nonetheless—thought: “Customers are likely asking themselves if this merger adds more complexity and cost to their environments at time when they are asking for more clarity and value.”

Not so sure that it adds any real complexity and cost to their environments, but Microsoft gets brownie points for moving into FUD mode before IBM did. What it does so, ironically, is to truly deliver FUD—fear, uncertainty and doubt—to the market. And although it’s not likely to have a huge strategic impact on most major chains, the most talked about confusing product is MySQL.

Retailers that use the MySQL open source database probably weren’t too concerned 14 months ago when Sun Microsystems spent $1 billion to buy the company (with Sun CEO Jonathan Schwartz calling the deal “the most important acquisition in Sun’s history”) because Sun has always been an advocate of open-source software. But this week’s move is a different story.

The news has some MySQL fans in a state of anxiety as they wonder if Oracle will continue to support MySQL or kill it given that MySQL is an open-source alternative, for some applications, to Oracle’s own database. Oracle isn’t revealing its plans. But the issue has created a level of chatter that would give the Tower of Babel a run for its money as pundits and experts try to guess.

“Oracle will kill MySQL,” said IHL Consulting Group President Greg Buzek. He took that stand despite noting that MySQL, which has an install base of about 12 million, doesn’t scale up to the super sizes of Oracle database but it is widely used for “literally anything below a terabyte,” an area where Oracle license fees don’t fit.

Nevertheless, MySQL has been a thorn in the side of Oracle, which was rumored to be interested in buying the company before Sun took the plunge. But that doesn’t necessarily mean Oracle will now stomp it out. In fact, those who believe Oracle will not discontinue support for MySQL suggest the company will keep it alive as a means of competing with similar-sized database products offered by competitors, including Microsoft.

Among those who reportedly believe Oracle will not lay to waste MySQL is Marten Mickos, MySQL’s former CEO. He told Forbes he believes Oracle intends to challenge Microsoft’s fast-growing database business and will use MySQL “to achieve a stronger developer community.” Mickos noted Oracle CEO Larry Ellison is “smart” and, therefore, not likely to kill a product that was getting about 70,000 downloads daily a year ago and is very popular with young developers.

Like other well-known pieces of open source technology, MySQL is being used at almost all of the major retailers, but typically in very minor projects. The very low deployment cost makes it easy for workgroups to use it to customize all kinds of projects. It’s inability to scale, though, has sharply limited its use.

Retail Systems Research Partner Paula Rosenblum said “most significant Web sites tend to use Oracle and Sun as a backend,” but she conceded MySQL is “free, performs very well” and “tends to be embedded in packages so you often don’t know where it is.” Because of that, Rosenblum recommended retailers concerned about the Oracle/Sun deal fallout should “check and see what runtime licenses you have running in your ancillary applications. Someone in your IT department probably knows if they have MySQL in it or not and if it does you might find yourself paying a royalty.”

But lest anyone think that these thoughts have gone unnoticed at Oracle, they announced the purchase of Sun on Monday (April 20). On Tuesday (April 21), Oracle announced an “Internet Seminar” where an E-mail blast said one topic would be one user discussing “how he gained a reliable, scalable, secure, and cost effective platform by moving from MySQL to Oracle.” Coincidental timing? With Oracle, there’s no such thing.


advertisement

3 Comments | Read Analysis: Oracle’s Sun Acquisition May Have Little Retail Impact Initially

  1. Gene Cornell Says:

    Excellent analysis. Goes along with my own view. Oracle already has customer satisfaction issues, so taking on more lines along with the turmoil of merging, resigning and laying off isn’t going to help.

  2. Rob Martell Says:

    I am not involved in retail myself. But I have worked with Oracle products in the past.
    So Open Office, Java updates, MySQL?
    Just waiting for my openOracle magazine!

    Great article, thanks!

    Grins,
    Rob

  3. TRedd Says:

    Great write up and on the money. All of this noise really says that Oracle makes a great database and they should just focus on that. REALLY!

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.