Oracle president Charles Phillips
Phillips: deal will be good for innovation

Oracle to buy BEA Systems in $8.5bn deal

Software giant aims to shake up the middleware market with latest purchase

Written by Janie Davies

If Oracle’s long-anticipated bid for middleware software supplier BEA Systems goes ahead, it will form a giant in the application infrastructure market, say experts.

The $8.5bn (£4.3bn) deal has already been unanimously approved by BEA directors and is expected to close during this year, dependent on the approval of BEA shareholders.

The size of the company it creates has significant implications for its competitors, says Gartner vice president Yefim Natis.

“A major motivation factor for Oracle is the market share,” he said.

“If approved, the combination of Oracle and BEA would create a stronger player in the application infrastructure space whose only rivals would be IBM and Microsoft.”

Users should not assume all Oracle products are safe, or that all BEA’s are at risk, said Natis.

“Oracle will look into the technology, and invest in and maintain the majority of BEA products so their customers can maintain their contracts,” he said.

“Future versions of the Oracle Suite will include component parts from both Oracle and BEA technology.”

Oracle says the move will boost innovation and global reach.

“The transaction will accelerate the adoption of Java-based middleware technologies and service-oriented architecture; advance innovation in enterprise applications infrastructure software; extend our strategic relationships with customers and partners; and increase our penetration in key regions such as China,” said Oracle president Charles Phillips.

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