For those who have an interest in the tech business, today it was announced that Oracle has entered a purchase agreement for Sun Microsystems for about $7.4 Billion dollars. It is interesting because IBM was thought to be the company with the main interest in Sun, but talks broke down just a few weeks ago. Oracle paid a 42% premium over the stock value for this purchase.

So, what does all this mean? For all you geeks out there this will raise serious questions about MySQL and Java applications. Currently both are basically open source programming that the Internet is heavily dependent upon. Indeed, most web-pages use some form of java scripting and MySQL. The worry is now that Sun controls these properties, are they likely to pull a Microsoft and pull back on how open sourced these programs are in order to gain bigger profits, etc.

The other worry is what is the future of MySQL, which is the largest and most used database management system in the world. MySQL is owned by Sun, but it is also licensed under a GNU public license. There is real concern in the tech world now that Oracle, who’s main business is database management systems, is just going to make MySQL go away so there is less competition with their own products. Or that they’ll somehow “unopen source” MySQL.

In fact, there may be serious anti-trust issues with this purchase. Pretty much everything uses either an Oracle or MySQL database system (or something based on it) and now that both of these are controlled by one company, there will be real questions about competition and monopolies. One possible cure to this is if regulators (either here or in the EU) requires Oracle to sell of MySQL, however I personally think this is the main reason Oracle purchased Sun. So, hold tight, this purchase will have serious ramifications in the tech industry and is one of the biggest purchases/mergers ever.

For you non-geeks, go back to your regular duties, nothing to see here.