Business as usual: Users shouldn’t sweat an Oracle takeover of BEA

Oracle has shown a knack for keeping customers happy following high-profile acquisitions. Its strategy for staying in customers’ good graces has been to simply continue supporting the solutions they had been using, and it has pledged to do the same for current BEA customers.

10/16/2007


An Oracle acquisition of middleware provider BEA Systems should not have much impact on customers of either company. That’s the feeling among analysts who have watched Oracle gobble up more than 30 companies over the past few years.
“Software companies, including Oracle, don’t buy competitors to kill them anymore,” says Bill Swanton, a VP with Boston-based AMR Research . “They buy them to make money. And Oracle has figured out the way to make money when buying a competitor is to keep its customers happy.”
Oracle has indeed shown a knack for keeping customers happy following high-profile acquisitions of PeopleSoft and Siebel. Oracle’s strategy for staying in those customers’ good graces was simply continuing to support the solutions they had been using, and it has pledged to do the same for current BEA customers.
But that pledge alone may not be enough to close this deal. In fact, Oracle only made its $6.7-billion bid for the middleware supplier public after BEA management cancelled a meeting in which negotiations regarding the purchase were to begin.
According to several published reports, BEA management canceled the meeting because it believes Oracle’s offer, which amounts to $17 per share, is too low. In addition to making its offer public, Oracle, through a letter written by President Charles Phillips, said it is committed to its $17-per-share offer and is “available to proceed immediately with a process that would lead to a friendly transaction.”
BEA’s reluctance to accept Oracle’s offer sparks memories of the hostile battle Oracle eventually won when it acquired PeopleSoft in 2005. It’s unlikely this situation will reach that level of acrimony, partly because Oracle’s handling of recent acquisitions has softened the attitudes of technology users and investors toward the company. Also, Carl Ichan, a noted activist investor, is BEA’s largest shareholder, and he is pushing for the company to be taken over. There was no such figure involved in the Oracle-PeopleSoft deal.
Swanton says Ichan will want to draw other suitors into a bidding war for BEA, but that is not likely to happen because the companies deemed the most likely candidates to make offers— IBM , Hewlett-Packard , and SAP —all have good reasons not to buy BEA.
For SAP, in particular, Swanton says, buying BEA would be a drastic departure from its current business model. Until it announced a $6.7-billion bid for business intelligence software specialist Business Objects last week, SAP had maintained a strategy of acquiring only small companies while developing major pieces of functionality in-house.
But Swanton says buying BEA would be an even further departure from SAP’s strategy because BEA’s middleware platform, known as WebLogic, would not fit neatly into SAP’s product portfolio.
While both SAP and Oracle have marketed their own middleware platforms over the past several years, Swanton says SAP’s platform, known as NetWeaver, is designed primarily to support integration with SAP applications.
By contrast, Swanton says, the Oracle Fusion middleware stack is a more open platform that allows for easier integration with third-party applications. Thus, Swanton explains, Oracle would have an easier time blending the BEA WebLogic platform into its product line.
“Essentially, this points out the differences in how [Oracle and SAP] have always approached the market,” Swanton says. “Oracle, as a database company, has always tried to serve a broader technology market. It moved into applications as a way of adding a revenue base. SAP, on the other hand, started out in the applications business. It moved into the middleware market because it needed a technology stack to support its applications environment.”





Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me