SAN FRANCISCO (The NYT)-- In many ways, MySQL embodies the ideals of the populist software movement known as open source, in which a program’s creator releases it to the world free of charge, and legions of volunteers contribute improvements that are also freely shared.

The start-up company came out of nowhere, building a database application beloved by vibrant, young Internet companies. Logging in from homes scattered around the globe, its workers seemed more a part of a virtual commune than a corporate monolith, and they relished taking on proprietary software giants like Microsoft.
But like most open-source companies, MySQL’s sales, tied to support deals, never matched the astronomical number of downloads for its product, about 60,000 a day. In January 2008, the founders decided to sell the company for $1 billion to Sun Microsystems. And this year, Sun agreed to sell itself to Oracle, which makes database software aimed at larger companies and tougher jobs, for $7.4 billion.
Now, disagreement over the value of MySQL — both as a stand-alone entity and as part of a big company — lies at the heart of a bitter public battle between Oracle and the European Union over the Sun acquisition. The fight illuminates a larger truth about open-source companies: their societal and strategic importance far exceeds their financial value as operating businesses.
European regulators view MySQL as sort of a database of the people, a low-cost alternative to Oracle’s costly proprietary products. The regulators worry that Oracle may stop improving MySQL in favor of protecting its core traditional products, and customers will lose an important option in the database market.
“In the current economic context, all companies are looking for cost-effective I.T. solutions, and systems based on open-source software are increasingly emerging as viable alternatives to proprietary solutions,” said the European Commission’s competition chief, Neelie Kroes, in a recent statement. “The commission has to ensure that such alternatives would continue to be available.”
Oracle, meanwhile, insists that it will continue to develop MySQL and other Sun technologies. Oracle’s chief executive, Lawrence J. Ellison, contends that MySQL serves a different part of the database market than Oracle’s main products do — an assessment supported by many analysts. One main incentive for Oracle to keep improving MySQL is that the program serves as a bulwark against Microsoft’s SQL Server database, which challenges Oracle’s products on the low end.
“The commission’s statement of objections reveals a profound misunderstanding of both database competition and open source dynamics,” Oracle said in a statement. To Ms. Kroes’s point, there is an open-source alternative, and usually a pretty good one, to just about every major commercial software product. In the last decade, these open-source wares have put tremendous pricing pressure on their proprietary rivals. Governments and corporations have welcomed this competition. Whether open-source firms are practical as long-term businesses, however, is a much murkier question.
The best-known open-source company is Red Hat, which produces a variant of the Linux operating system for server computers. Like most of its peers, Red Hat offers a free version of its base product and relies on selling support services and extra tools for revenue. In its last fiscal year, which ended in March, the company’s revenue rose 25 percent to $653 million, and it reported net income of $79 million.
But Red Hat is a rare case. “There’s only one company making real money out of open source, and that’s Red Hat,” said Simon Crosby, the chief technology officer at Citrix Systems, which acquired the open-source software maker XenSource for $500 million in 2007. “Everyone else is in trouble.”
The enduring appeal of open-source software revolves more around its disruptive nature than blockbuster sales.
As long as there has been software, there have been some people eager to share and improve it for the common good. The rise of the Internet made such sharing easier than ever, enabling people the world over to work together on projects outside the confines of a formal corporate structure.