Software // Information Management
Commentary
1/16/2008
01:45 PM
Rajan Chandras
Rajan Chandras
Commentary
50%
50%

Oracle Gets BEA: Dare I Say 'I Told You So?'

The big news today is that Oracle is buying BEA. Everyone saw this coming, but I offered my take on the appeal of BEA's middleware and virtualization technology last October. The question is, what will Oracle do with BEA, and how will this help or hurt BEA and Oracle customers?

The big news today is that Oracle is buying BEA. Everyone saw this coming, but I offered my take on "Why Oracle Needs This Deal" last October. The question is, what will Oracle do with BEA, and how will this help or hurt BEA and Oracle customers?Oracle president Charles Phillips' comment is telling: "BEA is a pioneer in middleware." Worth paying $8.4 billion, it seems, even when the prevalent market capitalization is around $6.4 billion.

Billionaire investor Carl Icahn, who pushed for the deal, took at least partial credit saying "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." Not to be outdone, BEA Chairman and CEO Alfred Chuang praised the "diligent and thoughtful process." Which is to say, he was right to spurn Oracle's initial $17-per-share offer and force the price up to $19.4-per-share - the terms of the final deal.

Oracle is acquiring some fine technology indeed; BEA's Weblogic, Aqualogic and Tuxedo product lines and BEA's newly introduced virtualization capabilities are all worthy of acquisition. Oracle and BEA customers can expect to reap solid benefits from this merger in the years to come. However, this also knocks out another solid independent vendor from the marketplace, which means less choice for future customers of middleware. Dare we hope that Oracle continues to support some measure of independence for the BEA product lines?The big news today is that Oracle is buying BEA. Everyone saw this coming, but I offered my take on the appeal of BEA's middleware and virtualization technology last October. The question is, what will Oracle do with BEA, and how will this help or hurt BEA and Oracle customers?

Comment  | 
Print  | 
More Insights
The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.