Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Recurring Revenue, Microservices Expo

Recurring Revenue: Article

ORACLE BEA - Expert Recommends Friendly Acquisition By HP, Not Stalker Oracle

"BEA has made it clear that being acquired by Oracle is not foremost in its business plan"

(October 19, 2007) - In the view of Rob Hailstone, Software Infrastructure Practice Director with IT research and advisory organization Butler Group, the combination of HP and BEA, if executed well, would create a significant force in the industry. Alfred Chuang's BEA has been very successful in partnering with HP, Hailstone notes, adding "The combination of HP and BEA, if executed well, would create a significant force in the industry and a natural balance to the otherwise dominant IBM and Oracle."

Here's Hailstone's thinking, released in a statement today by the Butler Group"

"Some 15 or more years ago I was in the audience at an IT conference, listening to Larry Ellison describing CA as a ‘bottom-feeder’.

Since I was working for CA at the time this rankled a bit, but it was certainly true that CA had evolved a good business model that included acquiring end-of-life software companies where there was a substantial user base in need of ongoing support.

The last few years has seen Oracle adopt a variation on this bottom-feeder business model – it doesn’t wait for the victim to be near the end, but puts the knife in at the first sign of weakness. In the case of BEA it has been making regular attacks on the company for years, apparently with the purpose of weakening its perception in the marketplace.

Now that BEA has scored an own goal by having to delay its financial filings, there is a short period when it will be difficult to establish the true worth of the company. This represents a period of weakness that Oracle has been quick to exploit.

There should be no pretence that Oracle needs to fill out its product portfolio by acquiring BEA; it is more the case that if the acquisition bid is successful, Oracle will be faced with a great deal of redundancy in the product range. It won’t be easy to convince BEA’s customer base that Oracle only has their best interests at heart. BEA is a serious competitor to Oracle with some fine technology that is making it difficult for Oracle to become dominant in the middleware space – so BEA has to go whatever the consequences.

BEA has made it clear that being acquired by Oracle is not foremost in its business plan, but Oracle several times has shown its ability to worry its prey to death over a prolonged period. It therefore looks likely that BEA will ultimately be acquired – but not necessarily by Oracle. BEA has a strong product set, but would benefit from the additional financial stability of being acquired by a large IT vendor. If not Oracle, then which other vendors might join in the chase?

IBM would be the most obvious competition for Oracle, and it has also been very active on the acquisition trail recently. However, the same issue of product set overlap would make this equally unwelcome to BEA’s customers and board. However, BEA has been very successful in partnering with HP, and since HP abandoned its SOA platform foray (which it entered through the earlier acquisition of Bluestone) the two product sets have become extremely complementary. HP has waded into the SOA management and governance market through the acquisition of Mercury, but has steered clear of providing its own SOA platform. The combination of HP and BEA, if executed well, would create a significant force in the industry and a natural balance to the otherwise dominant IBM and Oracle.

If BEA should happen to survive the onslaught by Oracle, it would certainly be weakened by the experience and it will probably see its market share slip. This would not be good for customers, shareholders, or employees, and would probably lead towards a further acquisition attempt (by Oracle or others) being ultimately successful. Now might be a better time for BEA to seek a friendly acquisition by a vendor that is looking for something more positive than to simply trash the competition.

Hailstone is Software Infrastructure Practice Director with Butler Group, the IT End User division of Datamonitor and a leading provider of Information Technology research, analysis.

More Stories By Oracle News Desk

Oracle News Desk trawls the world's news information sources and brings you timely updates on Oracle and its ever-expanding enterprise software portfolio, including its entire range of tools for managing business data, supporting business operations, and facilitating collaboration and application development.

Comments (2) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Job 10/22/07 03:29:34 AM EDT

For the sake of competition, I do hope that someone like HP is able to woo BEA, keep the product portfolio going, nurture and promote it and in turn become a large player in the SOA marketplace.
Oracle and IBM can battle and dominate in the Java only space, Microsoft will dominate in their own .Net space and HP can then bridge the two with a Weblogic+Aqualogic offering sure to please any HP customer.

Jay 10/19/07 11:08:24 AM EDT

Amazing you call yourself an expert. Getting emotions into Analysis is not what makes anyone anything.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.