Oracle to Acquire BEA Systems
The two have been courting for some time although Oracle walked away from a possible deal in October after saying it could not better its offer of $17 a share. BEA had demanded as much as $21 a share.
At $19.375 per share, Oracle is paying $8.5bn for the middleware firm - or $7.2bn once BEA's cash pile of $1.3bn is removed from the equation.
As is typical in a merger of this size, the press releases are vague about the long-term resolution of the overlap in the product lines, in part because many of those decisions will be made in the months and years to come:
... customers can choose among Oracle and BEA middleware products, knowing that those products will gracefully interoperate and be supported for years to come ..
It would not be uncommon for there to be a long period where customers of both BEA and Oracle will get a chance to express their preferences through their purchasing while the parent companies consider the options, a transition period where a direction will be set and customers given opportunities to transition as necessary, followed by some projects seeing an eventual sunset and end-of-life because they overlap heavily with another product which may be better, or simply better-placed in the market.
In particular, the overlap is most striking with OC4J and WebLogic, there are many other examples from OpenJPA and TopLink, through Service-Oriented Architecture, Business Process Management and Enterprise Service Bus stacks, and even development environments with BEA Workshop and JDeveloper.
- The move is generally seen as a good one for Oracle, although the analysis for BEA seems less up-beat.
But I wonder what plans Oracle has for WebLogic. There sure are a lot of overlap with a lot of their existing products. Which ones will survive? Will WebLogic become like a block of cement around the feets [sic] of us developers, now Oracle owns it? I hope not.
Given Oracle's history this could mean the end of the Oracle Application Server, to be replaced by Oracle WebLogic.
- Michael Cote points out that this could mean good things for OSGi, used by both BEA and Oracle.
Finally, the spectre of insider trading has already been raised, which might cast a pall over the acquisition.
the end of an era
Re: the end of an era
Certainly, I've been treating them as commodity for years, and it's been a long time since I've worked with a company that was still paying big money for a big-name application server.
Still, it's quite the move. ItBusiness.ca says this is the last mega-merger we'll see for a while, while other articles I read while preparing this news seem to think there's more coming.
java era ended with xml integration standards
my take on this acquisition: OC4J, Oracle ESB, Oracle BPM, Oracle web services manager will be replaced by better BEA products, WebLogic, Aqualogic ESB, Aqualogic BPM, WL Integration, Aqualogic Enterprise Security. Oracle BAM will evolve from microsoft environment and will integrate Aqualogic BPM Bam functionality.
Oracle and BEA have both licensed HP Systnet as their Service Registry, so this is an easy integration.
BEA engineers will focus into Front End / Web 2.0 era..
Re: the end of an era
Uncertainty for customers
Many companies are going to be faced with migration decisions or decisions on how to effectively support a mixed environment of web application servers. There needs to be a way to easily migrate applications from one web application server to others (even if different flavors – WebSphere, BEA, Oracle, JBoss…).
My company is taking one approach to help customers with this turbulence. If you want to read more, here's a link to our press release on the matter.
The soup is getting thicker...
Re: The soup is getting thicker...