Thursday, January 17, 2008

Oracle set to buy BEA for $8.5B

BEA has agreed to acquisition by Oracle Corp, for $8.5 billion dollars, as mentioned as a possibility by TSS back in October 2007. This strengthens Oracle's SOA market share, giving it access to BEA's AquaLogic, Tuxedo, JRockit, Kodo, and BEA Workshop.

It's a logical move, but one that gives Oracle a lot of redundancy: Oracle already has an application server, already has a SOA stack, already has a transaction management through BPM and its flagship database, already has social computing initiatives, and already offers a development environment via JDeveloper. BEA, of course, gains Oracle's marketing strength and more integration with products like Tangosol Coherence, acquired by Oracle in March 2007.

What do TSS readers see as happening? BEA clearly has some strong products, so that's an obvious "win" for Oracle: JRockit, Kodo, and WebLogic Workshop are excellent offerings.

That said, does Oracle really need another JPA implementation? It now has TopLink and Kodo, so it has JPA support through both products; it also gets JDO courtesy of Kodo.

What about application servers? Oracle licensed the OrionServer source years ago, and has since created a completely separate product in OC4J; is Oracle going to relegate OC4J to the back burner, or BEA WebLogic? Or will both application servers remain as "flagship offerings," competing with each other much as WebSphere Community Edition does with WebSphere? (One obvious difference is that WebSphere CE is based on the open source application server from Apache, Geronimo.)

WebLogic Workshop is a suite of extensions to Eclipse; Oracle already has JDeveloper, a standalone Java IDE. Does this mean Oracle is planning on using Eclipse as a base platform, or is it planning on reducing the emphasis on Workshop? (Of course, this is somewhat dependent on what happens to BEA WebLogic Server, as Workshop has a lot of useful integration tools with WLS.)

In any case, congratulations go out to both companies. We look forward to seeing what happens in the future.

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