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A legend is a legend

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(Update) Many people (such as DBANotes) think IBM is the ultimate loser in the Sun/Oracle deal. I think the deal is not necessarily bad news for IBM. Here is my rationale. IBM did not win because:

1) Anti-trust concern. Sun and IBM together will have a very high share of both UNIX server and storage tape markets.

2) Oralce CEO Larry and Sun CEO McNealy are very good friends (source: WSJ).

Negatives for Oracle:

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SAP buys Business Objects

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Week in review 10/07 to 10/13

China Mingsheng Bank buys a stake in a US bank.

China pork price is under control for now, how about housing? And stocks?

Oracle placed a hostile $6.7 billion bid for BEA Systems, according to Bloomberg. Enterprise software arena will have one fewer importnant player.

SAP buys Business Objects (From Reuters), SAP, the world largest business software maker, agrees to buy Business Objects, the leading (French) business intelligence softare maker. If you have not heard of Business Objects, a few years ago it acquired Crystal Reports, the well known reporting software. This leaves Canada’s Cognos the only major BI software maker.

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Its the capitalism

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Larry Ellison, the CEO of Oracle, surprised the IT/software world again yesterday with the Unbreakable Linux annoucement of “support of Red Hat Linux support and charge less than Red Hat does”. That news crushed the Red Hat stock today, it went down 24%. There are many good technical blogs explains and discusses Oracle’s move. Here is blog one and two. I am going to put it in plain English terms and share some of my thoughts on Open Source and Linux movement.

So Oracle is the guy who sells beer at baseball stadium, and Redhat sells peanuts. Sometimes they work together (parter) because a customer needs both beer and peanuts. They are happy because they both make money; Oracle makes more money because it has a higher sales revenue and profit margin. One day this Oracle guy decides to roll out its “Larry” brand peanuts, at half the price Redhat guy sells. As much as customers like Rehat’s personality, many customers decided to buy peanuts from Oracle.

Seriously, I think this is a big blow to the Open Source and Linux movement. Open source and linux have been buzz words in the technology world in recent years, partly because of people don’t want to see Microsoft taking all the market share, partly because its superior technology. Note many innovations are made by volunteering programmers all over the world, for the benefit of the technology community. IBM, the big blue, also put great effort behind Linux development for competition reasons (hint, to compete with Microsoft). To be fair, Oracle also contributed the Linux development in the past. Of course Redhat is the biggest player in the Open Source world: unlike all the proprietary software companies keep the source code inside company and derive revenues from software licensing, Redhat shares its source code with the community and solely derives its revenue from support and service. Now with Oracle’s jump into the ring, where is Redhat’s future? The following is what I saw from Redhat web site.

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