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Energy Saver 3000 and other PFC nonsense
Posted on March 6th, 2010 No commentsMy friend Jack recently asked me to write about the Energy Saver 3000 and whether it will save money on your electricity bill. I saw this product advertised on TV about a year ago and nearly fell out of my chair when I heard the ridiculous claims being made about saving money using a power factor correction device. And I understand other charlatans have jumped on the bandwagon and have begun offering similar devices that are supposed to ‘pay for themselves in a few months’ with the money you will save on your electricity bill.
Few people understand what power factor means and I guess this makes it an ideal way to extract money from consumers who trust that anything that appears on a TV ad must be legitimate. Basically, the power factor is an indication of phase alignment of the voltage and current in an AC waveform. In a purely resistive load, the alignment is perfect, which gives it a power factor of 1. On loads that have energy storage elements in them like inductors and capacitors, it can get out of alignment and the power factor falls below 1. A power factor below 1 doesn’t mean that all the energy is getting lost, it’s just that a portion of it is being returned to its source. Whenever energy is transmitted through wires a small amount of it is lost in the resistance of the wires, so it’s preferable to minimize the amount that gets returned. The power company has a vested interest in keeping the power factor as close to 1 as possible for the same reason. However, unless you’re a commercial customer, you don’t get charged for power that is returning to its source. You only get charged for actual power consumed. And in the grand scheme of things, the amount being returned is rather small as a percentage of the overall total, less than 10% for the average household. Since about 7% of all power is lost in the power company’s transmission lines, the overall loss due to having an imperfect power factor is 10% x 7% = .7%. This means that if every household in the nation were to have a PFC device (one that actually worked) the maximum potential energy savings is .7%.
You can improve the power factor of an inductive load such as a motor by adding a properly sized capacitor to it. This is what these power factor correction devices claim to do. But the problem is that they can’t match the capacitance to the load because most of these motors run only intermittently and so when they are not running, the capacitor will cause the power factor to become out of phase in the opposite direction. And none of these devices has active monitoring to switch the capacitor in and out. That is why these devices simply cannot save energy. Even if they did actively monitor and correct the power factor, the savings would be nowhere near what they claim since, as mentioned, the average savings would only approach .7%.
The Energy Star website has an interesting entry on these devices:
“ENERGY STAR does not qualify any Power Factor Correction Devices. Please send us an email at logomisuse@energystar.gov if you see one that claims to be ENERGY STAR certified.
Power Factor Correction Devices claim to reduce residential energy bills and to prolong the productive life cycles of motors and appliances by reducing the reactive power (kVAR) that is needed from the electric utility.
We have not seen any data that proves these types of products for residential use accomplish what they claim. Power factor correction devices improve power quality but do not generally improve energy efficiency (meaning they won’t reduce your energy bill). There are several reasons why their energy efficiency claims could be exaggerated. First, residential customers are not charged for KVA-hour usage, but by kilowatt-hour usage. This means that any savings in energy demand will not directly result in lowering a residential user’s utility bill. Second, the only potential for real power savings would occur if the product were only put in the circuit while a reactive load (such as a motor) were running, and taken out of the circuit when the motor is not running. This is impractical, given that there are several motors in a typical home that can come on at any time (refrigerator, air conditioner, HVAC blower, vacuum cleaner, etc.), but the unit itself is intended for permanent, unattended connection near the house breaker panel.
For commercial facilities, power factor correction will rarely be cost-effective based on energy savings alone. The bulk of cost savings power factor correction can offer is in the form of avoided utility charges for low power factor. Energy savings are usually below 1% and always below 3% of load, the higher percentage occurring where motors are a large fraction of the overall load of a facility. Energy savings alone do not make an installation cost effective.
Power factor correction devices are NOT eligible for a federal tax credit.”
Most of the ‘evidence’ to support claims by companies hawking these devices is very unscientific, often times just unsupportable anecdotes by shills talking about how their energy bill went down after installing one of them. This could simply be due to behavioral changes one naturally makes when focusing on an area of improvement, behavior that a customer who purchases an expensive power saving device is likely to engage in without realizing it. To truly measure improvement, you need to run a controlled experiment and I’ve yet to see a legitimate experiment demonstrated when it comes to these devices. Even the videos on the websites don’t bother to measure actual power, just current or power factor before and after which to me means that they are intentionally trying to mislead customers. There are many inexpensive power meters out there such as Kill-A-Watt and yet there are no demos with a power meter used properly, i.e., showing watts consumed before and after installing a PFC device. Instead, they show power factor or current before and after, which makes for an impressive demo, but tells you nothing about the energy savings you’d experience.
If you’re thinking about buying one of these devices, I’d recommend you buy a whole house energy monitor like the TED5000 instead. It will cost less than a useless PFC device and is likely to help you figure out where your energy is going so you will be more aware of how you can save energy. It will also tell you exactly what your power factor is at any moment. As I type this, my furnace blower (a 900W load) is running and my power factor is .94, which is close enough to 1 that it’s hardly worth worrying about.
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EntConnect 2010
Posted on February 28th, 2010 No commentsI posted over a short article on my consulting site about the upcoming EntConnect conference and I figured I’d make sure that anyone who checks in here gets the message too. The EntConnect conference that sprung out of Midnight Engineering magazine in the 1990s will take place in less than a month, March 25th-28th in downtown Denver. If you’re a tech entrepreneur, or would like to become one, you may want to join us. You’ll learn a lot and have some fun while you’re at it.
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Greeley Annual BaloonFest
Posted on February 18th, 2010 No comments
I am experimenting with some photos I took last October during Greeley’s Balloon Festival. I thought I’d see if I could upload them using the Gallery feature in Wordpress.
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Fake Virus Scanner Scams
Posted on January 31st, 2010 No commentsBy now you’ve no doubt visited at least one website, usually one that appears in page one of Google’s search results, that does a redirect and all of a sudden, what appears to be a virus scanner is now running on your computer screen. It may look something like the window below.
Click on the image for a larger version of it.
The image on the screen is animated with the green bars filling in and the % complete changing, and shows that it’s scanning your drives for viruses. It finishes in a surprisingly short time. However, it’s just a JavaScript animation, nothing more, and it’s not doing anything with your files because browsers cannot open your computer’s files without your help. Invariably, it will find threats and invite you to download a product to ‘fix’ them. The other messages that pop up may look like the following:
Most of the popups are harmless, but the last one is an attempt to get you to download an executable file that, if you open it, invariably will end up taking you to a site where you’ll have to put in your credit card number to pay for the virus scanner to remove the viruses and to ‘keep you safe’.
Downloading an .exe file won’t do anything by itself, but if you open an ‘.exe’ file, then all bets are off, because it can do anything it wants, including installing a real virus, which would not be a stretch for a company that is trying to steal from you already.
The safest place to click on the pop-up windows are on the red X’s in the upper right hand corner to close them, but sometimes you’ll find that you can’t get out of the web page or browser because they keep popping up. If your browser keeps a ‘memory’ of the sites you were on when it closed (like Firefox does), it feels like you can’t get rid of the offending site. But there is a way to safely extract yourself from the clutches of these evil doers.
You can disable JavaScript temporarily and all windows will close when you close them and the popups will stop. To disable Javascript on Firefox, just click on Tools->Options->Content and uncheck the box next to JavaScript. You can re-enable it after you’ve gotten out of the website. For Internet Explorer, to disable JavaScript, you can select Tools->Internet Options->Security->Custom Level and scroll to the “Active scripting” section of the list (under “Scripting”) Click Disable.
JavaScript by itself cannot harm your computer, but if you give it help, by actually acting on the pop up messages and saying ‘ok’ or ‘yes’ when you’re in this situation, then you can do yourself some harm, and pay the price for what will be, at best, a useless virus scanner. It’s pretty hard to use the Internet these days with JavaScript disabled, because so many sites depend on it to work properly. So trying to disable JavaScript permanently isn’t really an option.
There are a number of real virus scanners out there, and a popular one is AVG. You can download and install it for free, although it may do some unsavory things such as change your default search engine to Yahoo and install yet another toolbar. These things are easily reversed, of course.
So, you might wonder, how does this happen that a website ends up in page one of Google’s search results and yet is a site that is so obviously evil that it’s trying to extort money from you? It’s usually done by cloaking. When Google’s search bots go looking to index websites, these sites give the search bots a different page filled with keywords that look like an exact match for what you’re searching for so they score high enough to reach page one. However, when the website detects a real browser, it will redirect it to another website that tries to convince you that you have a virus and now must buy some protection. Google and other search engines hate cloaking, but they have a hard time detecting it, since a website can tell whether it’s being visited by a search bot vs. a browser.
If you’ve visited a site like this, you should to do a real virus scan, particularly if you allowed it to download and execute the .exe file. As long as you didn’t open the .exe file, you’re probably OK, but for peace of mind, a scan with AVG or similar virus scanner may help your computer feel just a little less slimy after visiting one of those sites.
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SparkFun Free Day in Progress Now
Posted on January 7th, 2010 2 commentsMy friend Nate, who owns SparkFun Electronics in Boulder, decided it would be a neat idea to give away $100K in free products. Each customer is limited to $100 of free stuff. It is a way to test the new servers and see what kind of load they could handle. It started at 9:00 a.m. MST this morning and I was figuring they’d run out of free parts in just a few minutes. However, it’s been going on for over an hour and the servers are so overwhelmed that they can only process about $16K per hour, which means this is likely to continue on for most of the day.
SparkFun sells electronics to hobbiests, particularly those who like to design their own microprocessor-controlled devices. They have a large selection of Arduino parts and I have a shopping cart full of them right now…. if I could only check out I’ll be able to get them for FREE
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Bear Chews up Plane, Duct Tape to the Rescue
Posted on January 6th, 2010 No commentsI am amazed at the resourcefulness of Alaskans. During a private “fly-in” fishing excursion in the Alaskan wilderness, the chartered pilot and fishermen left a cooler and bait in the plane. And a bear smelled it. This is what he did to the plane, a Piper Super Cub.
The pilot used his radio and had another pilot bring him 2 new tires, 3 cases of duct tape, and a supply of sheet plastic. He patched the plane together, and FLEW IT HOME!
Click on any image below for a higher resolution version.
How would you like to come back from a day of fishing to find this?
The bear destroyed a plane… all for some bait fish…
And a few tasty tires…
Looking good!
I like the way he ‘kept it legal’ with the tail number written by hand on the duct tape. You have to click on the image to get a bigger view and squint to see the tail number written over the duct tape, N9368D.
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Preserving Digital Memories
Posted on December 11th, 2009 3 commentsThere’s something fascinating about people getting all excited about a product that you helped design. That’s what’s going on here on the HSN channel. These women really understand the concept of the product. I helped design the Picture Keeper to solve a real problem that people are now encountering on a regular basis, that is, the loss of all of their digital photos due to a hard drive crash or virus. I have photos of my family that are over 80 years old. Below is a photo of my aunt, uncle, and mother taken in Ireland in the 1920’s. You can bet my photos are backed up at least 4 different ways, including to my Picture Keeper.
If you want to make sure your digital photos don’t get lost, head on over to PictureKeeper.com to get your Picture Keeper today.
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Barnstorming and other Adventures
Posted on December 10th, 2009 No comments
I once shared a hangar with this beautiful 1929 Travel Air. About 20 years ago I learned to fly at the New Garden Airport in southeastern PA. Shortly after getting my license, I purchased a 1961 Piper Colt. Not long after I purchased it, this amazing aircraft showed up in the adjacent hangar. The plane had been purchased by a young lady who quit a secure job and started a barnstorming business with a business partner giving rides in an open cockpit biplane. I was amazed to think that someone would leave a secure job and start a business like that. Later on when I was exposed to Richard Bach’s books I felt like his stories might have inspired the couple to throw caution to the wind and start that business.While reading the Slashdot feed yesterday I saw a reference to a site that was exposing the Internet get-rich-quick schemes that are so prevalent these days. The article referenced a website called undress4success.com. Despite the attention-getting title, I learned that it was dedicated to providing useful information to people who are working from home. It provides resources to help people who like the idea of a 2-second commute and the site’s owners regularly gave the low-down on scams that prey on those hoping to make a living working from home. The most recent article was related to the ‘Work for Google’ scams that are being actively pursued by Google’s legal team, since they are not endorsed or supported by Google. The scammers are just trying to profiteer from pretending to have an association with the Internet search giant.
I like to expose scammers. Seeing unscrupulous charlatans abuse the goodwill and trust of others is just one of those behaviors that I can’t sit by and idly watch. Several of my most popular blog articles are related to exposing scams like the Amish Heat Surge miracle heater, the Arctic Cool Surge (yes, same company), and exposing the unworkable mathematics of all MLM schemes.
I was reading through the website and I started to realize that the couple running it had a very familiar-sounding story. They mentioned that they had started a Barnstorming business in Pennsylvania in the early 1990’s, moved it to San Diego, and then grew it to 7 aircraft and 25 pilots before selling it and starting this new website and promoting their book entitled Undress for Success: The Naked Truth about Making Money at Home which is about how to work from home. It was Kate and Tom, the same couple I had met at New Garden Airport, all these years later! It’s certainly a very small world.
I had been working on my own article about people who make money by selling others on the idea of how to make money on the Internet. The funny thing is that many of these sites are all writing about the same thing, which usually involves selling ’secrets’ or starting an endless cycle of recruitment for information products. It sounds a lot like an abusive MLM business. The kingpins in the worst MLMs don’t actually make their money selling products, they make their money selling high-margin ‘educational materials’ and ‘tools’ to unsuspecting recruits month after month. This is precisely what these get rich quick membership sites (who generally want a direct line to make a monthly withdrawal from your bank account) are up to. When it’s all said and done, they sell you on a business that is nothing more than a recursive cycle for you to try to write and sell the same kind of information on the Internet. But who wants to buy from you when they can go right to the source, i.e., the guy holding up an image of his big earnings check on every one of his pages? They augment this income with a other questionable affiliates all who have something to sell you that sounds like it will teach you to get rich quick. Or, if not that, then information on how to get flat abs, or get ripped like Arnold Schwartzeneggar in 4 weeks.
I just purchased the book based on the positive reviews I’ve read on Amazon. Websites that educate people on the perils of scams tend to restore my faith in humanity and I always feel good when I come across one.
And if you can’t live without a ride in the vintage Travel Air, you can find it at Barnstorming Adventures (phone: 800-759-5667) located at Montgomery Field Airport in San Diego flying under the new ownership of another couple who no doubt purchased the business as an insurance policy… an insurance policy against a boring life.
Remember, if something sounds too good to be true, it probably is, and on the Internet, that goes double.
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Putting Tire Sealant in Presta Valve Tubes
Posted on October 15th, 2009 No commentsI got a new bike earlier this summer (a Kona Dew Deluxe) and it’s a sort of cross between a mountain bike and a road bike. It uses the narrow 700 cm road tires and so I’m learning to deal with Presta valves whenever I need to inflate the tires. That requires putting an adapter on the valve stem since my air compressor is set up for much more common Schrader valves.

One of the annoyances of bicycling on the Front Range of Colorado is the abundance of thorns called ‘goat heads‘. They will easily puncture bicycle tires. I learned this many years ago when I purchased my first bike in Colorado only to get two flats tires on the same day I took it for its first spin. When I returned to the bike shop, they asked if I had put TR tubes in it yet. TR tubes? “What are those and why didn’t you let me know about this when I bought the bike?” I was new to Colorado and never heard of TR tubes. “TR” stands for thorn resistant and their outside wall is about 4 times thicker than that of standard tubes and so the goat heads generally cannot penetrate in far into the tube wall enough to puncture it. After installing these tubes, I didn’t have any more problems with flat tires from the goat heads on my mountain bike.However, with my new bike, despite putting TR tubes in it before leaving the bike shop, I’ve had several flats from goat heads. I guess it’s because the rubber on both the tire and the tube is thinner to begin with than standard 26″ mountain bike tires. So I needed another plan. I see a lot of Slime tube sealant for sale these days in bike shops, and I was wondering if there would be a way to get it into tubes that had these newfangled Presta valves since the cores didn’t appear to be removable. I looked on the Internet and found several websites that talked about a method of using cutters to clip off the last few threads on the part that holds on the nut you need to loosen to put air in Presta valves. This causes the threaded part to fall into the tube which allows enough room to put the Slime in the tire. Then you have to push the threaded part back up into the stem and secure it with the nut, which now has no locking thread to keep you from unscrewing it all the way. I was hoping that I would not have to do that. I found that I was in luck because my tubes had Presta valves that allowed me to remove their cores. If you look at the part of the valve that has the threads to hold the valve cap on and it has flats on it, then that means the core can be unscrewed.
This Presta valve above has flats on the threaded part that holds on the cap which means the core can be unscrewed from the valve stem.
In my case, I already had some Slime but my local bike shop guy, Mark at International Bike in Greeley, is a strong proponent of True Goo. He believes that this product is easier than Slime to put in the tire due to its lower viscosity and that it seals better too.
If you search on the Internet, you’ll see a lot of people telling you these tube sealants don’t work. I think the reason for this is that it’s still possible to get a flat even with tube sealant, especially if the hole is so big that the sealant comes out so fast it can’t solidify. Also, people are much more likely to post a rant about a product that let them down rather than to take the time to post a positive review. In addition, when tire sealant works, you don’t really have hard evidence to let you know that you would have gotten a flat if you didn’t have the sealant in the tube. So it’s hard to measure tube sealant’s effectiveness.
In my case, I had the perfect experiment. My rear tire’s tube was losing nearly all its air every 2 days. It meant that each time I wanted to go for a ride, I needed to put air in the tire. I had debated on whether to patch or replace the tube, but then I realized that it would be a great experiment to see for myself whether tire sealant actually works, especially on slow leaks, which are the kind you generally get from the tiny holes that goat heads put in the tubes.
In order to put the sealant in the tire, my bicycle guy gave me some good advice. The rubber transfer tube that comes with these sealants is sized to be a press-fit on Shrader valves, which is much too large in diameter to seal on Presta valve stems. However, if you gradually cut the top of the cone-shaped nozzle until it is a press-fit for a .22 caliber cartridge, it will also be a press fit on a Presta valve which is about .235″ in diameter. You can also use the .22 bullet as a cap because the red cap that is included with it will no longer fit after you cut that much of the tip off the nozzle. You can use a spent .22 caliber casing or something else that is similar in diameter if you’re worried about using live ammunition to seal the bottle. Here’s a picture of what it looks like:
If your Presta valve has a removable core, you can even put the sealant in when the tire is on the bike. Just rotate the valve to the top, insert the nozzle on the valve stem, and rotate it back around to the bottom. Squeeze in about 3 ounces of fluid, rotate back to the top, remove the bottle. Then replace the valve core and fill it with air.
I found that my tire that leaked down every 2 days consistently has now held its pressure for several weeks, which leads me to believe that this stuff actually works as advertised.
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The Sun Also Sets
Posted on October 2nd, 2009 2 commentsSun Microsystems has always intrigued me. For a number of years, it seemed as if the company could do no wrong. During the early 1990’s, Sun occupied the top position in high performance computer workstations, a category of computing that has since virtually disappeared thanks to advances in PC hardware. Despite desperate attempts to unseat it from its leadership position by worthy competitors like HP, DEC, and IBM, Sun was able to prevail.
If you had purchased Sun stock in May of 1994, you’d have seen it skyrocket to nearly 100 times its value by August of 2000, just 6 years later. Had you kept it at the historical high price of $253/share, you’d have seen your investment lose more than 98% of its value when it came back down to just $3.17 a share by October 2008.
Sun has always been a leader and innovator. As the workstation market was overtaken by PCs running Windows, Sun became an exceptionally strong competitor in the server market. In 1999, Sun was riding high and looked to be unstoppable. The company was getting lots of positive press about its new language called Java which sought to be the long awaited ‘write once, run anywhere’ computer language. Presumably, it would be the last computer language that a developer would ever need to learn.Java had an incredible amount of hype surrounding it. Something that would relegate the Microsoft Windows operating system into a well-deserved irrelevance had finally arrived. No longer would all the popular desktop programs be forced to use Microsoft’s proprietary OS. Instead, applications could be written in Java and run equally well on a Mac, a PC, or any number of Unix-derived operating systems. It was a simple matter of providing a run time environment for each computing platform. That run time environment became known as the Java Virtual Machine (JVM). If you have an orange coffee cup in your systray that always seems to be begging for an update, then that is an indication that you have a Java Virtual Machine on your PC.
For a while, many websites required the JVM to work properly, but lately I’ve noticed it has become much less necessary. And very few commercial desktop programs require a JVM. Whenever I install a new Windows OS, I can sometimes go for months before realizing I haven’t downloaded Sun’s JVM.
The Java programming language should not to be confused with JavaScript which is a completely different language used primarily in web browsers which was developed independently of the Java programming language. JavaScript was developed by Netscape and was originally called LiveScript. When the folks at Netscape saw the positive response Java was enjoying back in 1996, they made a cross-marketing agreement with Sun to rename LiveScript to JavaScript to tap into Java’s significant cachet. Netscape agreed to promote the Java language in exchange.
Despite all the hopes and dreams of Sun and enthusiastic Java developers, this ‘write once, run anywhere’ promise never achieved its potential. Today it looks even less likely that Java will unseat Windows from its hegemony on the PC. Apple has only recently managed to make some progress on the Windows desktop monopoly by finally breaking through single digit market share of installed base. Apple is now at 10% market share vs. Windows at 88.7% share according to a ComputerWorld report. But when it comes to desktop apps, Apple still relies on Microsoft to deliver the goods in the form of Office applications even for its Mac OS. I guess we’ll see if Google will have better luck than Apple in unseating Microsoft on the desktop with Google’s upcoming desktop OS and cloud computing approach to applications.
After Sun developed Java, it appeared to change directions. Sun seemed to be intoxicated with Java’s assured future success. This infatuation with a language that had failed to achieve its mission in any significant way 12 years after being introduced reached its zenith when Sun changed its stock symbol from SUNW to JAVA in 2007. I think it was Sun’s way of turning its back on its hardware roots in exchange for the promised fortunes of free software. For Sun’s market cap, the downhill slide continued despite the new stock symbol.
I had worked with Sun back in the late 1990’s and found that if you emailed Sun a Microsoft Word document it would be rejected along with a request that you to re-submit it in HTML format. I thought this was rather odd, since Microsoft’s Word was emerging as a defacto standard and surely someone at Sun should have been able to convert it to HTML. But then I found out that Sun employees didn’t have Windows computers and weren’t allowed to buy them. This was around the time that laptops running Windows were becoming indispensable business tools. Sun had acquired an insane hatred for all that emanated from Microsoft to the point where the use of its products was prohibited. In essence, Sun’s management had constructed a reality distortion field for itself and the rest of the company.
Sun acquired StarOffice in 1999. It later offered the software as a free open source “almost-compatible” alternative to Windows Office applications and called it OpenOffice. I’ve used OpenOffice which is the free version of StarOffice, but have found the applications lacking true compatibility. It feels like a product that was built without any apparent business model in mind, unless you consider a quixotic attempt to marginalize your archenemy’s revenue source to be a business model.
Sun had always been vertically integrated, supplying not only its own operating system, but also its own computing hardware all the way down to its Sparc CPU. Sun made some early tentative steps to get its Solaris OS to run on x86 CPUs, but the early efforts never really gained much traction, likely an indication that they were conflicted about making it work. Instead of figuring it out, Sun abandoned those efforts and continued to promote its Sparc architecture, and continues to offer Sparc-based hardware to this day. I believe it was this decision to try to do battle with not just Microsoft, but also with Intel, that furthered Sun’s problems. Sun entered into an alliance with AMD in 2004, but AMD has problems of its own, namely that it has to compete with Intel too. Finally, in 2007, Sun began working with Intel by adopting Xeon CPUs for its high-end servers. But I think it was too late at that point.
In 2004 Sun arrived at a legal settlement with Microsoft, claiming the company was exercising its monopoly position to ruin Java, earning it $1.95 B for its years of legal wrangling. However, I think the damage done to the relationship between the two companies was beyond repair. By the time of the settlement, Sun was hemorrhaging. Giving an ailing company that much cash is like giving it to a crack addict. They’ll only use it to go on a binge and, based on the sort of acquisitions made after that point in time, that’s exactly what happened.
Sun spent $1 billion to acquire MySQL in 2008, an open source database project that was no doubt starting to give Oracle and its competitors cause for concern because it was encroaching on the highly profitable database business. This acquisition did little to boost Sun’s prospects because MySQL really didn’t seem to fit in anywhere at Sun, and it’s hard to imagine there was any potential for revenue since MySQL was already open source and freely downloadable. Only about 1% of MySQL customers were paying for it. That sort of genie cannot be stuffed back in a bottle. To make matters worse, Sun was determined to move it upstream by improving its performance, furthering its threat to database companies who were still charging for their software.
By early 2009, Sun, having lost nearly 98% of its market value and suffering from years of losses or break-even results, was looking to be put out of its misery by being acquired by a rival. IBM appeared to be the front runner but in a surprise bid, Oracle came in and made an offer that Sun accepted instead. The deal is still pending some regulatory approvals.
What Oracle expects to achieve with Sun is anyone’s guess, but I think Oracle made the deal to get its hands on MySQL and to make sure it never becomes a competitive threat to its primary source of revenue. Despite claims to the contrary, Oracle has no need for Sun’s hardware business because it is no longer sufficiently differentiated from the competition. Sun’s software businesses have never made any money when one considers the cost of developing, supporting, and defending them. It’s just mystifying to me what Oracle’s Larry Ellison thinks he’s getting for $7.5 billion. I suppose if the company can be parted out, Ellison will be able to derail further development of MySQL, keep Sun’s $3 billion in cash, and sell off the rest of the company in an effort to recoup the remaining $4.5 billion. Oracle probably won’t risk entering the hardware business and thus alienating key allies like HP, Dell, and IBM when it comes to offering its database server on their hardware. My guess is that once the deal is approved and things quiet down, a fire sale for what’s left of Sun’s assets will ensue.
Sun was a formidable company in its heyday, and I’m sure there are still a lot of smart people there despite Bill Joy’s proclamation to the contrary, now known as Joy’s Law, that ‘most of the smartest people work for someone else’. That statement comes across with such a demoralizing thud that it’s hard to wrap one’s mind around its true meaning. Scott McNealy, Sun’s former President and CEO, known primarily for his sarcastic sound bites about Sun’s competitors and his periodic resurrections, has somehow been silenced. I don’t think he’ll be making a reappearance because Ellison is not the type of person who likes to be upstaged, as can be seen from the YouTube video below where he amuses the audience with his take on Cloud Computing.
Despite the multitudes of really smart people at Sun, its decline, fall, and consumption shows that no amount of technical brilliance can overcome bad decisions on the part of management.






























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