Sun Microsystems elbowed into the enterprise database market Wednesday with the announcement of a proposed $1 billion acquisition of MySQL, an open-source database software company. The deal, which Sun Chief Executive Jonathan Schwartz calls the "most important acquisition in the company's history," makes Sun one of the first major public companies to offer open-source software and puts the company head to head with the three big vendors in the $15 billion database market: IBM, SAP, and its former database partner, Oracle.
Compared to those three goliaths, which provide database software to 86% of the enterprise software market, according to Forrester Research, MySQL offers a simpler and cheaper solution. That makes MySQL an appealing option for small- and medium-sized businesses, says Forrester analyst Noel Yuhanna. "Unlike IBM, Oracle and SAP, MySQL has never had 50,000 features, but it does have maybe 10,000 relevant features that are relevant to enterprises," he says. "That cost savings is one of the key reasons that users have looked at open source, and fewer features means it's easier to use and manage."
MySQL's lighter-weight database system may also fit into Sun's ambitions of becoming a major player in "utility computing," a model of information technology infrastructure that pipes in software applications, processing and storage over the Internet rather than from a company's own data centers. "All other databases on the market today were designed for an offline, back-office use," says MySQL Chief Executive Marten Mickos. "Our relevance grows as enterprises shift to Web-based architecture, and that's what's happening right now."