| By Oracle News Desk |
Article Rating: |
|
| November 17, 2007 12:30 PM EST |
Reads: |
27,134 |
(October 13, 2007) - Marc Fleury - who started JBoss in the early 2000, sold it in 2006 and is now
retired - has been commenting on Oracle's $6.6BN bid for BEA Systems. "The
combination just makes sense from most angles I can think of," he writes. Of
Alfred Chuang, BEA's current CEO, he predicts: "It is going to get nasty and he
*will* be dragged out kicking and screaming."
In Fleury's view, the bid
is well-founded. "The combination just makes sense from most angles I can think
of," he
writes.
Here
is his reasoning:
"Product wise, this acquisition probably puts
Oracle as market leader in terms of marketshare by a comfortable margin. By
consolidating BEA and ORA's market share they are leapfrogging both IBM's
websphere and RedHat's JBoss.From an financial standpoint, Oracle grows
by executing correctly on their strategic acquisitions. They have a track record
here, they deliver consistent 30% growth on a behemoth of a company by not
screwing up what they buy.From a operations standpoint, executing on
this one is fairly straightforward for them. The sales models are the same, the
business models are the same, pretty much everything but development can go,
extracting immediate EBITDA anywhere from 30% to 60% depending on how far they
want to cut it. In that sense, even though ORA stock is down 2% on the news,
this one may make complete numbers sense."
But Fleury wouldn't be Fleury if he didn't allow
himself a little irreverence...and Alfred Chuang - just as industry blogger
James Hamilton also gave the same day - is given the full treatment:
"Obviously the crazy dude over at BEA is going to put up at least a
simulacrum of a fight. Thinking of it, I expect Alfred "I am compensating
for..." to put a heartfelt final battle into this, he has probably already
super-glued his naked chest to the BEA boardroom table. It is going to get nasty
and he will be dragged out kicking and screaming. Alfred will mumble something
about not wanting to be Larry's power point bitch, or waxing his boat, or some
other non-sense. But Larry is going to make sushi of that board and will feed it
to the koi fish he has in his compound and cost more per head than Alfred's
car... This one is going to be funny to watch. Pass the popcorn please."
Subscribe to Open Source Magazine Email News Alerts
Subscribe via RSS
