Sun Lights LAMP With $1 Billion MySQL Buy

by admin January 16, 2008 at 11:47 pm

Does the purchase of a widely used open source database system mean Sun is transitioning into a Web 2.0 software company?

As Sun Microsystems (NSDQ: JAVA) becomes the owner of MySQL, the pioneering open source database system, it plugs a hole that exists in the Sun software product line and moves the company toward becoming a supplier to Web 2.0 companies.

The company that pioneered the Java programming language said Wednesday it will pay about $800 million in cash in exchange for all of MySQL stock and assume about $200 million in options as part of the deal.

But Sun still needs to undergo the transition that will make it a software company that can capitalize on MySQL’s popularity. Many young companies seek to become social networking-type sites and many of them already use MySQL. By buying the open source database company, Sun could become a supplier of the companies that seek to maximize customer interactions, capitalize on user input, and gain a position in the second phase of Web operation.

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