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Oracle Buys BEA

Posted by Zonk on Wed Jan 16, 2008 01:41 PM
from the consolidate-much dept.
In an event not as surprising as this morning's buyout announcement, but still noteworthy, Oracle has purchased BEA Systems. The middleware maker was snapped up for the sum of $8.5 billion, the second offer Oracle put forward. "BEA had long been considered a prime takeover target in an industry that has been consolidating for several years, but BEA executives had repeatedly dismissed Oracle's overtures, saying the company could perform better independently. Mr. Icahn began buying up BEA shares last summer, and today owns 13 percent of the company. The deal makes Oracle the undisputed leader in the market for middleware, business software that gets its name from its role as a layer of programming code that resides between a company's database system and the payroll, human resources and inventory systems that use the same data."
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story

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[+] IT: Oracle's $6.7 Billion Bid for BEA Turned Down 61 comments
andy1307 writes to tell us that according to the Mercury News, Oracle has made an unsolicited bid to buy BEA Systems for about $6.7 billion. BEA confirmed that it rejected the $17 a share bid as too low. "BEA told Phillips that its board of directors believes BEA 'is worth substantially more to Oracle, to others and, importantly, to our shareholders than the price indicated in your letter.' Oracle's aggressive bid may be an attempt to pre-empt an acquisition by others, Finley said. Those named in the past as potential suitors include IBM, the German software company SAP AG and Hewlett-Packard. Trip Chowdhry of Global Equity Research said he expects a counterbid from SAP, which he said needs BEA to survive. 'If they don't get BEA, probably in two years SAP will be on the block to sell itself,' Chowdhry predicted. Oracle needs to keep BEA out of competitors' hands, he said. Chowdhry said the offer currently 'is not right. Probably at $21 the deal will get done.'"
[+] Developers: Oracle Is Latest To Take On VMware 109 comments
BobB writes "Oracle is going after its piece of the hot virtualization market by introducing an open source Xen-based hypervisor to compete against those from Novell, Red Hat, and VMware. Oracle VM, unveiled Monday at the Oracle OpenWorld convention in San Francisco, enables virtualization on Oracle and non-Oracle software applications and on the Linux and Windows OSs. It also operates on industry-standard x86- and x86-64-based servers. Oracle claims it offers virtualization at a lower cost than competitors can." VMware stock dropped over 10% on the news; Oracle's stock rose. The market was not punishing Oracle for the unpatched zero-day vulnerability (public exploit available) that the company won't patch until Jan. 15.
[+] Developers: Sun Buys MySQL 588 comments
Krow alerted me that MySQL has been bought by Sun. Right now there is only a brief announcement but it discusses what the acquisition will mean for the core developers, community etc.
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  • BEA Employee Comment (Score:5, Interesting)

    by Anonymous Coward on Wednesday January 16 2008, @01:51PM (#22069704)
    It will be interesting to see what they ultimately get for their $8.5B. I work in a BEA group where quite a few folks are ex-Oracle, and they have universally unkind things to say about their former employer. The mood is decidedly un-optimistic in our CA office.

    Any tips on how to request to be on the list of layoffs (to get the severance)?

    -OracleHater
    • by tgd (2822) on Wednesday January 16 2008, @02:03PM (#22069902)
      Step 1: Don't post as AC
    • by eln (21727) on Wednesday January 16 2008, @02:03PM (#22069908) Homepage
      I think it's pretty safe to say at this point that if you work for a company that has anything to do with middleware, database software, or pretty much any other enterprise software, you'll eventually end up working for Oracle or being laid off by Oracle.

      • Hogwash!

        I don't ever see Oracle acquiring IBM. Steve Mills would laugh in Larry Ellison's face and cast him aside like a little used rag-doll.
      • ...or... (Score:2, Insightful)

        by Anonymous Coward
        .... or IBM, or Software AG, or SAP

        Although Oracle has a knack of taking perfectly good products and tying them to Oracle in ways that aren't fathomable.

        For example, Oracle's LDAP service requires you to use an Oracle DB to store the data attributes, despite the fact that this is demonstrable a bad thing. Everything Oracle does is not just to make money, but to make it selling you more DB licenses, even if it doesn't make technical sense to do so.
      • I think it's pretty safe to say at this point that if you work for a company that has anything to do with middleware, database software, or pretty much any other enterprise software, you'll eventually end up working for Oracle or being laid off by Oracle.

        I work for IBM on DB2 LUW. Should I be worried? :-)

        Oracle and IBM continue to acquire companies in the middleware space to fit into their strategies. Buying BEA is a large commitment on the part of Oracle and it'll be interesting to watch any fallout or rejoicing in the coming months.

        Cheers,
        Toby Haynes

      • by ndykman (659315) on Wednesday January 16 2008, @03:56PM (#22071284)
        Or Microsoft. Or IBM. And doesn't RedHat count with the whole JBoss thing?
    • Transfer to QA. Testing is just overhead, right? We waste too much money on it as it is.

      Seriously, if there are rumors of layoffs, talk to your manager about it or HR.
    • by Darkforge (28199) on Wednesday January 16 2008, @02:43PM (#22070444) Homepage

      Any tips on how to request to be on the list of layoffs (to get the severance)?
      Ask your manager nicely. I'm serious!

      I was at Plumtree when BEA acquired us (now it's the "Business Interaction Division" making the ALUI products) and a number of people said to their managers "BEA isn't the place for me" and walked away pretty happy.

      The joke was always that BEA stands for "Built Entirely on Acquisitions" ... they seemed to know how to handle themselves when acquiring. Here's hoping they'll handle themselves gracefully as they're being acquired.
    • by Deanalator (806515) <pierce403@gmail.com> on Wednesday January 16 2008, @02:51PM (#22070588) Homepage
      Any bets on the next few headlines today?

      I'm going for

      Sun buys Oracle
      Google buys Sun
      Google buys Microsoft
      • ... I just don't see OC4J coming out of this alive......
        May God hear you.
        But as wicked a company as oracle is, I wouldn't get surprised if they discontinued Weblogic Server and kept on commiting mass OC4J.
  • i was just reading (Score:5, Insightful)

    by Surt (22457) on Wednesday January 16 2008, @02:04PM (#22069928) Homepage Journal
    About how Oracle is floundering, and quite close to melting down from its attempts at integrating all the middleware platforms it has picked up in the last four purchases it made. Obviously, when you're having serious trouble getting all your different software platforms integrated, the best solution is to buy another one. Good move Oracle.
    • how Oracle is floundering, and quite close to melting down from its attempts at integrating all the middleware platforms it has picked up
      Where did you read this?
      • Well I can't vouch for what was said, but in my thankfully limited experience, OAS is a big steaming mess. I just pray they don't do *anything* to WebLogic, my experiences with it have been far, far better.
        • OAS is a big steaming mess.

          After developing a failed project based on the Oracle stack last year, I would have to agree. I hope I never have to use OAS, and JDeveloper ever again. Oracle DB wasn't too bad, and JSF was buggy but somewhat alright to work with. But not nearly as nice as Spring/Hibernate. IBM seems to definitely be more advanced in their middleware tools, and I would choose them hands down.
        • Oh? Around our office, we're pretty convinced WebLogic (Portal) is a steaming pile ... we'd switch everything to Tomcat if management would let us. But they already paid for WebLogic, you see.
      • http://money.cnn.com/2005/09/12/technology/oracle_analysis/ [cnn.com]
        http://www.forbes.com/2007/11/14/oracle-consolidation-openworld-tech-cx_wt_1115techoracle.html [forbes.com]

        There was some better source, unfortunately I can't find it at the moment.
        Basically, it sounded like Oracles efforts to find commonality in all of their platforms were turning into a mess. Not working there myself I can't confirm or deny.
    • Maybe it's like the story about bringing in cats to kill mice, but then they needed dogs to chase away all the cats, and wolves to chase the dogs, and elephants to chase away the wolves and finally mice again to scare away the elephants. Maybe they think this new software will seek out and devour the other four. Or not.
  • Looks like the interest rate slashing and high inflation is starting to pay off.
  • "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

    It's the user tax on closed formats and closed source, basically.

    • It's the user tax on closed formats and closed source, basically.

      Agreed though I would add lack of compatibility (or inability to plan compatibility) to the items being taxed. For a lot of companies "off the shelf" just doesn't quite get the job done and heaven forbid two pieces of software actually communicate. [/sarcasm] While I certainly wouldn't argue forward compatibility [wikipedia.org] is easy (quite the opposite in fact) I see middleware as the cost of building or buying systems with insufficient flexibility up front. Companies get trapped by limitations in off the shelf so

    • So what you're saying is if open source gains market share, these types of acquisitions will become obsolete...?

      Well, I know where I wouldn't invest
    • Re: (Score:2, Insightful)

      "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

      It's the user tax on closed formats and closed source, basically.

      So how does an in house Java application running on JBoss and using a MySQL database fit into your analysis of Middleware?

    • by Max Littlemore (1001285) on Wednesday January 16 2008, @07:49PM (#22074406)

      "Middleware" is IT-speak for "we've got this closed-source thing over there, and it doesn't talk at all to this closed-source thing over here, and we have no idea what their data formats or wire formats are but we've spent scads of money on both of them and now we need them to talk to each other, so can you please figure out how to make that work?

      Bullshit.

      While middleware is appropriate in the context you put forward, it is also appropriate in the "We have a mainframe app we built ourselves 15 years ago and we need to integrate it with a new web app we've developed and have those to apps work together with all our external partners and regulatory bodies" type scenario. Whether the source code of either system is open or closed is irrelevant if the interfaces are well defined. Middleware makes sense if you look at it from the point of view of a business performing a staged upgrade, whereby they can leave legacy systems which aint broke running, implement new functionality on new systems (which wont require them to hire a bunch of 70+ year old COBOL codgers to maintain it for the next 15 years) and then migrate the old functionality to newer tech. It all happens seemlessly with a good middleware solution, at least in theory.

      Middleware is not a closed source tax, it is the mortar that helps keep solid infrastructure solid, whether you use open or closed source software.

  • Was I the only one thinking that?
    • Consider how many times this kind of thing must have floated on larry elison dreams:
      Having some jet fighter factories and finally wipe that loser bill gates out of sight, so the world would finally recognize him, Larry Elison, as the One and truly One.
  • by ServerIrv (840609) on Wednesday January 16 2008, @02:29PM (#22070256)

    "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," Mr. Icahn said in a statement. (from TFA)

    Translation...this hostile takeover is an excellent example of how I can buy up lots of stock, sue said company into being bought out, the stock price artificially goes up so I make tons of money, lots of employees get screwed, and I don't care about the pawns in my money game," Mr Icahn laughed as he went to the bank with his ill gotten, but "legal" gains.

  • Hmm (Score:3, Funny)

    by Quiet_Desperation (858215) on Wednesday January 16 2008, @02:52PM (#22070590)
    No Bea Arthur jokes. The world has truly moved on. *sigh* I'm old. :-(
  • Saying something to the effect of "This transaction is an example of the great results for everyone that can be attained when the shareholder activist works closely with management."

    I think the other stakeholders (employees, customers) will take a wait-and-see approach.
    • Re:Srsly (Score:5, Funny)

      by cioxx (456323) on Wednesday January 16 2008, @02:02PM (#22069880) Homepage
      It's that thing that sits between topware and bottomware.

      It's a very important ware. You might say it's essential for enterprises.
    • The code that would, say, communicate your -1 Offtopic mod to a external data archive system.
    • Re:Srsly (Score:5, Informative)

      by Bill, Shooter of Bul (629286) on Wednesday January 16 2008, @02:08PM (#22069982) Journal
      A marketing term for any piece of software that a user does not directly see, or alternatively any piece of software a journalist doesn't understand.

      In BEA's case there talking about Tuxedo ( distributed messaging/ queuing system), weblogic ( J2EE app Server) and aqualogic ( a compilation of buzzwords compliant programs that I don't understand).
      • Re:Srsly (Score:5, Interesting)

        by sdpuppy (898535) on Wednesday January 16 2008, @03:59PM (#22071320)
        Arrgh.

        OK, sounds about right.

        But for those to whom the reply sounds like a foreign language (on the order of one like Guugu Yimithirr), perhaps an example is in order.

        From my understanding:

        You're at an ATM machine. The front end is what you work with - the user interface that you are telling that you want to transfer $xx to another account.

        The back end are the data bases that receive all that information

        The middle ware is what makes sure the transaction goes through without error even though computers are crashing left and right and network connections are being chewed upon by evil squirrels.

        Early days it was easy to see who had BEAS middleware on the web.

        Fill your cart with junk, and hit the browser back button, not the screen back button.

        If you lost everything in the cart, most likely it was IBM middleware.

        If everything still worked no matter how much abuse you gave, BEAS software was working behind the scenes.

    • Re:Undisputed? (Score:5, Interesting)

      by Surt (22457) on Wednesday January 16 2008, @02:11PM (#22070034) Homepage Journal
      Buying a company is usually about buying their loyal customers, not about buying their product. Then you declare that the official upgrade path for their software is onto your own product's software track in the next version. Very few of the customers will revolt, thanks to limited marketplace options.
      • Re:Undisputed? (Score:5, Insightful)

        by EricTheGreen (223110) on Wednesday January 16 2008, @02:48PM (#22070526) Homepage
        Normally very true. Muddled somewhat in this case by the overall bland reputation of the Oracle products that overlap BEA's (is anyone even using Oracle's app server for something other than supporting Oracle apps these days?)

        My guess is BEA's customers are in for more of a re-branding than a product EOL: many of the BEA stack component technologies would be folded into the Oracle product mix and renamed. I'm not convinced the BEA brand was a big draw for new business these days anyway, so it would be a manageable pain from Oracle's perspective. The biggest headache in this case may be getting BEA's current customer base to not cut bait and migrate once they see Oracle's product pricing, post-branding.

        One big EOL risk (IMHO) is the AquaLogic stuff, given Oracle's big push into SOA the past couple of years--Ellison, et al, may not want to eat that R/D.

        Not good times right now for the majority of BEA's staff though, in any event...

        • I do know exactly one company using OAS for in-house apps... but only one, and not for any good reason.

          With any luck, this will eventually mean OAS will go away to be replaced by WebLogic. That would make sense, though... we'll see what Oracle actually does.

          I'm still trying to make sense of using anything other than Tomcat, but some corps just like to spend money, I guess.
          • I'm still trying to make sense of using anything other than Tomcat, but some corps just like to spend money, I guess.

            Tomcat is my container of choice for servlets and JSPs...but it won't help you much as an EJB container unfortunately. That was, once upon a time, a big selling point for the BEA stack. And, probably not coincidentally, as EJB's began to acquire a bit of a bad smell in the J2EE community BEA became a bit less attractive an option given the alternatives available for the J2EE stack (JBoss an

            • ok, right... JBoss if you really need J2EE stuff. My experience? What most folks are doing can be done with Servlets alone, they just like buzzwords. There are definitely things you want a J2EE app server for, though...

              JBoss is the answer, there. I stand corrected. I don't know why anyone would use anything besides JBoss or Tomcat. Thanks for the correction, I'm ashamed I let that slip.
        • Re: (Score:3, Interesting)

          (is anyone even using Oracle's app server for something other than supporting Oracle apps these days?)

          Oh unfortunately yes. I work for a New York State agency and we use almost exclusively Oracle Application Server. I say almost because my unit is the only one using something else, and that something else happens to be BEA. This is actually quite distressing, because I've seen what my collegues have to deal with with OAS and they always tell me how lucky I am to be using Weblogic for my J2EE server, along w

      • Re: (Score:2, Informative)

        > declare that the official upgrade path for their software is onto your own product's software track

        That probably is the norm, but Oracle is not doing this to PeopleSoft & JD Edwards customers. At least, they're not pushing hard and fast. They've announced (and in fact have been delivering) multi-year support, including non-Oracle-Applications (i.e., "Fusion") upgrades.
      • That is why we have standards.

        If I develop an application following the MVC model:
        - Model: data accessed through standard SQL
        - View: web based.
        - Controller: J2EE standard
        I can change:
        - Model: the OS of my clients
        - View: I only need a J2EE application server (jboss / websphere / whatever)
        - Database: I only need an standard database (Oracle / SQLServer / Postgresql)

        I'll use whatever product is the best to solve my problems. For example, if suddenly Oracle wants to charge lots of money for a database instance,
        • Re: (Score:3, Insightful)

          It would be nice if this were true, but for non-trival use cases there isn't any such thing as a "standard" database - they are not really compatible or feature equivalent - although you can hide the differences quite a bit. Ditto for application server. Stray into advanced areas and you will find differences in the vendors' tech stacks. So there is some inevitable cost to changing stacks. Some developers do target multiple different stacks and keep their software compatible with all of them but that costs,