what.com.es/next

Sun Microsystems Inc.  today announced it has entered into a definitive agreement to acquire open-source software maker MySQL AB for $1 billion, beefing up the server maker’s database offerings with a company whose technology is used by some of the world’s biggest Web sites.

With millions of global deployments including Facebook, Google, Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun that will change the landscape of the software industry by driving new adoption of MySQL’s open source database in more traditional applications and enterprises. The integration with Sun will greatly extend the commercial appeal of MySQL’s offerings and improve its value proposition with the addition of Sun’s global services organization. MySQL will also gain new distribution through Sun’s channels including its OEM relationships with Intel, IBM and Dell.

Who said the free software was not profitable?

Chinese online population hit 136 million people by the end of 2006 becoming the world’s second largest behind the U.S. with a total online spending of $35,5 billion (47% more than the previous year).

Average Chinese Internet user spends $22 a month online, including payment to online services providers as well as shopping ang gaming. Still, the most popular Internet services in China are search engines (dominated by Baidu and Google and, to a lesser degree, by Yahoo!) followed by Internet portals (led by Sina.com, Netease.com and qq.com) and e-mail services.

But the most rapid growth in usage last year came from blogging. China now has 20.8 million bloggers. Top blogging sites are hosted by Sina, Qzone and MSN. Other new Internet services that are gaining particularly wide acceptance are personal Web pages similar to those on MySpace and video-sharing based on the Web 2.0 standards similar to YouTube. What comes next? Only time will tell.

Another world’s #1 Internet company bites the dust. After spending more than $250 million since 2002 and losing more than $8 million in 2005 (doubling 2004’s loses), eBay has thrown the towel and, remembering that old motto “if you can’t beat them, join them”, eBay has announced a joint venture with a local mobile Internet company called Tom Online.

Tom Online, Beijing-based and owned by the millionaire Li Ka-Shing, will contribute $20 million and provide the local management and market knowledge, taking a 51% stake in the new company. On the other side, eBay will contribute $40 million taking a 49% stake.

Similar steps were taken by other Internet giants like Google and Yahoo. Looks like you cannot win in China without Chinese partners. Who comes next? Only time will tell.