09-10-26 Presentation EU ORCL MySQL

8/9/2019 09-10-26 Presentation EU ORCL MySQL

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European Concerns AboutOracle Acquiring Sun's MySQL

Florian Mueller

EU Policy StrategistAdviser to Monty Program Ab(a company founded by MySQL's creator)

Press conference in Silicon Valley 10/26Analyst briefing in New York City 10/27


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Florian Mueller BackgroundPart I

1985 (age 15): articles for computer magazines

1986 (age 16): youngest computer book author

1987-1998: consultant and representative focus on licensing and distribution partnerships

between Californian and European companies

Berkeley Softworks GeoWorks (traded as GWRX;outperformed every other geographic market incl US)

Knowledge Adventure (Bill Gross, Steven Spielberg)

Davidson & Associates (traded as DAVD), acqu by CUC

Blizzard Entertainment: Warcraft II became #1 in

Germany, first time for Blizzard to top a sell-thru ranking


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Florian Mueller BackgroundPart II

1996-2000: founded, managed and sold startup

2001-2008: MySQL First meeting (March 2001) in co-founder's kitchen

2001-2004: Adviser (on strategy matters) to the CEO

From 2004 on: Shareholder

2004-2006: patent policy campaigns consistentlysupported by MySQL (and additional sponsors)

Multiple awards and nominations to rankings(Economist/European Voice; Managing IP; CNET etc.)

2007: Real Madrid CF, EU competition policy

Often interrupted: own development project


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Role in Oracle/Sun/MySQL Process

No involvement with US DOJ process

Mid-August: authored position paper, helpedwith questionnaire replies and EC conf call

Then focused on own project again, but stayedin contact with Monty Program on friendly basis

Announcement of new involvement: last week

Information effort in response to misinformation Involvement with processes in otherjurisdictions possible, not always announced


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MySQL: new market disruptor andlow-end disruptor

New market: dynamic web pages

Code base geared toward data warehousing,strenghts/weaknesses profile good for web

Linux, Apache, MySQL, PHP/Perl: LAMP stack

Non-transactional until 2001 storage engines

SAP technology partnership in 2003 (SAP DB)

Version 5.x tree (2005-2009): storesprocedures, triggers, views, informationschemata, cursors, XML...

MySQL Cluster real-time carrier-grade DB


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Low-end disruptor MySQL(chart downloaded from Wikipedia, author: Megapixie)


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Competitive Situation

General-purpose vs. single-purpose databases

Cross-platform vs. single.platform databases

Lock-in: DB switching costs only justifiable forfundamental cost savings over time

Open source: MySQL strong community ANDcommercial following, no competitor has both

Migrations, design wins, price competition Functionality, reliability, scalability, credibility

Competing across all segments, synergies


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Destruction Ratio

Then-CEO Mrten Mickos according to Forbes(February 2004): Software has been overglorified for 20 years. You've

been able to overcharge for underperforming software mission: turning the $10-billion-a-year database

business into a $1 billion one

Internally: for every $10 of Oracle revenue that

we destroy we make $1 of MySQL revenue Construction value = $1 billion to Sun

Destruction value from Oracle perspective = ...


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Company (Not Community) Project

Intellectual Property Rights (IPRs) of the core(database engine and other key elements)created or acquired by company

Testing and word-of-mouth most importantcommunity contributions, plus smaller tools

Further innovation of complex DB engine (core)requires significant # of full-time developers

IPR comparison with Red Hat: MySQL brandvs. not owning Linux brand; core vs. fringe


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Revenue Model

10%: professional services; not too scalable

IPRs allow higher prices, lower marketing costs

90%: dependent on non-open-source licensing

Dual licensing same codes different rights/oblig's:

embedding of MySQL code into other products not boundto share-alike obligation of Free Software GPL;

quid pro quo: if you are open source, then we are;

if you are commercial, then we are, too Subscriptions (MySQL Enterprise):

MySQL + proprietary tools linked to professional services

Non-open-source tools are the essential differentiator


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Forking: Legal But Not Viable

Fork vendor needs to establish a new brand,difficult to find any such success story ever

Dual-licensing only a possibility for IPR owner

Subscription business would lack differentiation Developing alternatives to proprietary tools would

take time/$ and the result would

either have to be open source (thus no differentiation) or depend on a commercial license from IPR owner

Effectively, multiple forks would compete foronly about 10% of the opportunity (services)


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Only divestiture sustainsvirtuous circle

IPRS

revenues

development (company, not community)

more IPRs and all over again

Monty: different home than Oracle, a homewhere there will be no conflicts of interest

concerning how, of if, MySQL should bedeveloped further


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Behavorial Remedies andOracle Promises Not Helpful

FAQ in April: MySQL just addition, no details

Statements on R&D investment only deep intophase II of EU regulatory process

R&D promises don't mean effective competition

Regulators prefer structural over behavioralremedies

Oracle won't be the turkey that votes for Xmas Only separate commercial entity will use

MySQL to compete with Oracle ever more


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EU Process

Phase I decision: EC press release (3 Sep)didn't mention any other area of concern

Phase II: deadline for EC decision (unless

extended by 15, 20 or 35 days): 19 Jan 2010 EC will need to decide soon (if it hasn't already)

whether it issues Statement of Objections

EC spokesman reproached Oracle for failure toact constructively

Oracle can end process anytime with remedies


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Thank you!

For further information:[email protected]

09-10-26 Presentation EU ORCL MySQL

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