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Oracle snags open-source database company

Oracle said on Tuesday that it acquired open-source database company Sleepycat Software for an undisclosed sum.  —  The database giant said Sleepycat's open-source Berkeley DB database will complement Oracle's existing line of closed-source databases for embedding within applications.

CNET News.com Martin LaMonica

Context & Ripple Effects

Oracle had already introduced a free 10g Express Edition in October 2005 in response to pressure from low-end open-source databases. Its open-source acquisition search now has a completed target: Sleepycat and its Berkeley DB technology for embedded applications.

The deal broadens Oracle's database portfolio across closed-source products and an open-source embedded database, rather than treating open source solely as a low-end pricing threat.

First-order effects

  • Oracle gains Sleepycat Software and can position Berkeley DB alongside its existing database line for software vendors embedding a database in their applications.
  • Sleepycat's Berkeley DB becomes part of Oracle's product portfolio, placing its embedded-database development and distribution under Oracle.

Second-order effects

  • Oracle can address embedded application deployments with an open-source offering while retaining its closed-source database range for other needs, sharpening its response to low-end open-source pressure.
  • Database buyers and application developers gain an Oracle-owned option in the embedded segment, making Oracle's product boundaries more important in purchasing decisions.

Third-order effects

  • If Oracle continues to buy open-source capabilities, database competition shifts from a simple proprietary-versus-open-source divide toward vendors managing portfolios that span both models.
  • The acquisition points to governed open-source distribution becoming a strategic capability for established database suppliers, especially where embedded use cases expand the addressable market.

The trend: Oracle is using acquisition and free distribution to adapt its database business to open-source competition and embedded software demand.

Related: Governed open-source distribution · Capability Acquisition · Oracle · Sleepycat Software · Oracle's Open-Source Shopping Spree

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