Oracle

To: Larry Ellison

BY: Jia Liao

Date: 03/01/2010

Re: Oracle/Sun 2010

Mr Ellison,

Oracle met a serious problem that no one had anticipated. European Commissions objected the merger proposal between two American Technology companies because MySQL from Sun is thought a potential competitor of Oracle’s database service. As the delay will cause huge loss for both companies, I suggested that Mr. Ellison take it seriously and move quickly. It is not a speed bump in the acquisition.

First of all, I respect your vision and attempts to keep the MySQL as an indivisible part of the deal. We are sure to keep MySQL as part of the deal. Though it cannot bring much cash flow to the company, it is the largest open resource database in the world with over 40% of the market. Oracle would have more reputation on database business if acquired it. Then, acquiring the MySQL could attract more customers to use Oracle’s products and service when they need support, which is a significant synergy. Although most conspiracy theorists believe that Oracle would eventually get rid of the MySQL and only take care of Oracle’s server service, I still believe that it is not your purpose because MySQL and Oracle has totally different target market. If MySQL were abandoned, people who use MySQL for free would more likely choose other free products like PostgresSQL rather than switching to Oracle. Thus, MySQL could be seen as a strategic product that can gather engineers, bring customers and obtain reputation.

EC mainly has two concerns about MySQL. First concern is that whether Oracle is trying to destroy the MySQL because it is a potential competitor. The Second concern is that whether there is products could substitute MySQL and thus alleviate anticompetitive effects. What we need to do is to help them eliminate suspicions.

1. Because the decision was not a final decision and could be discussed, communicating with European Commission is necessary. Oracle needs a special team that conclude...