Sun Microsystems losing £100m a month, says Oracle's Ellison

Larry Ellison, chief executive of the software giant Oracle, has fulminated against European regulators, saying Sun Microsystems was losing $100m (£61m) a month while its takeover by Oracle remains unapproved.

The European Commission is conducting an in-depth competition inquiry into the proposed $7.4bn takeover, saying that it could create a monopoly in the market for database software. Oracle's software dominates this segment of the market, while Sun offers an open source version called MySQL. But Mr Ellison said he was sure that the deal would be waved through in Europe as it has been in the US, and the delays are simply causing unnecessary damage.

"Once they do their job, they are going to come to the same conclusion: MySQL and Oracle do not compete at all," he said. "The longer this takes, the more money Sun is going to lose. That's a big problem."

Mr Ellison is the world's fourth richest man, with a fortune estimated by Forbes magazine at $22.5bn. He founded Oracle in 1977, turning it into one of the most influential software companies in the world, with the firepower to spend $35bn on acquisitions over the past five years.

Named after the Stanford University Network built by four students there for an IT project, Sun found its servers highly popular during the dot.com boom a decade ago, but its hardware and software businesses have struggled since. Oracle swooped in April after Sun's takeover talks with IBM stalled.

Sun's revenue has been tumbling since its acquisition was announced. IBM and Hewlett-Packard have poached customers amid uncertainty about its future.

The European competition commissioner, Neelie Kroes, said earlier this month that she wanted a full 90-day investigation of whether Oracle would favour its own database software over the open-source MySQL when working on IT projects for customers.

"Databases are a key element of company IT systems," Ms Kroes said at the time. "In the current economic context, all companies are looking for cost-effective IT solutions, and systems based on open source software are increasingly emerging as viable alternatives to proprietary solutions. The Commission has to ensure that such alternatives would continue to be available."

Mr Ellison remained uncompromising during his appearance at the Churchill Club, Silicon Valley's most prominent speaker forum. "We're not going to spin [MySQL] off."

He said broader economic conditions remain challenging and he did not foresee a rapid recovery.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory