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Abstract

During the dot.com bubble, Sun Microsystems was extremely profitable with its proprietary software. The two cash generating engines of Sun, namely Solaris and Java had catapulted Sun to become extremely profitable. But with the growing popularity of open-source software, the market became very competitive. This prompted Sun to launch Open Solaris and then Open Source Java. But with all its efforts, Sun could not break into the market of open-source software. What Sun needed was an open-source database to complete its product stack. Therefore, to fulfill the requirement, on 26 February 2008, Sun Microsystems acquired MySQL for $1 billion. This case tries to discuss Sun's strategy to break into the open-source software market. Moreover, it raises debate about the long term sustainability of this strategy.
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2008

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Abstract

During the dot.com bubble, Sun Microsystems was extremely profitable with its proprietary software. The two cash generating engines of Sun, namely Solaris and Java had catapulted Sun to become extremely profitable. But with the growing popularity of open-source software, the market became very competitive. This prompted Sun to launch Open Solaris and then Open Source Java. But with all its efforts, Sun could not break into the market of open-source software. What Sun needed was an open-source database to complete its product stack. Therefore, to fulfill the requirement, on 26 February 2008, Sun Microsystems acquired MySQL for $1 billion. This case tries to discuss Sun's strategy to break into the open-source software market. Moreover, it raises debate about the long term sustainability of this strategy.

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Location:
Industry:
Other setting(s):
2008

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