Oracle Acquires DNS Provider Dyn

People who spend a lot of time on the Internet should remember October 21, when some of the most popular websites in the world became inaccessible for a time. This was because Dyn was targeted by not just one but multiple distributed denial-of-service attacks, which is when someone uses a network of infected computers and other digital devices to flood a victim with junk requests, thus making it either impossible or next-to-impossible for their legitimate counterparts to get through. Such incidents are not uncommon, but this particular example had such a enormous impact on the Internet as a whole because Dyn is one of the DNS providers that make up one of its most critical components.

In brief, DNS providers are responsible for translating domain names into their associated IP addresses. For example, when someone attempts to access a particular website by entering its domain name into their web browser of choice, their Internet service provider will consult a DNS provider, find the IP address that is associated with the server in which said website is stored, and then connect to said server. This process is simple but nonetheless critical because IP addresses are expressed using strings of numbers in a dotted decimal format, meaning that while they are suitable for use by machines, they are not so suitable for use by humans, which explains the common use of domain names rather than IP addresses for navigating the Internet.

With that said, it is important to note that DNS provider is but one of Dyn’s roles. Founded in 2001 by college students at Worcester Polytechnic Institute, it specializes in Internet performance management, meaning that it enables its clients to keep a close eye on their Internet connections and make changes for the sake of optimization. Something that has become more and more important as businesses have become more and more reliant on their online assets for their overall success. Besides Internet performance management, Dyn also provides a number of related services such as email and domain registration, thus making it a not-so-well-known but nonetheless well-rounded corporation.

Why Is Oracle Purchasing DYN?

On November 21, Oracle Corporation announced that it would be buying out Dyn, thus turning it into one of its subsidiaries. Not much information was released along with the announcement, meaning that much of what has come up consists of speculation. For example, while a lot of people were interested in the figures involved in the transaction, Oracle has remained silent on that particular topic, though some people have come up with an estimate of $600 million. Likewise, while a lot of people were interested in whether the October 21 incident prompted the buy-out or not, Oracle remained silent on that particular topic as well, though the sheer amount of discussion that tends to be involved in such a consequential transaction suggests that the process must have started long before that point in time. Regardless, even though Oracle has said so little about its buy-out of Dyn, there is a fair amount of information that can be extrapolated based on its position in its chosen markets as well as the positions of its competitors in those same markets.

First and foremost, Oracle specializes in software. To be exact, it specializes in database software, enterprise software, and cloud computing platforms. In particular, the database management system called Oracle Database is an excellent example of the products and services that it can offer interested individuals, while other examples include but are not limited to enterprise resource planning software, customer relationship management software, and supply chain management software. At the moment, Oracle occupies a powerful position in its chosen market, so much so that it is the second largest software maker when ranked by revenue, following Microsoft but preceding all other companies of this kind. However, it is important to remember that nothing can be assumed to last forever in the fast-changing world of tech, meaning that Oracle and other successful companies must continue to do their best if they want to remain so. Something that is particularly true because the software maker is not immune from disasters and disruptions of their own, as shown by how hundreds of its systems were found to have been breached at some point not so long ago in the month of August.

By buying out Dyn, Oracle will shore up its products and services for enterprises, thus enabling it to strengthen its hold on its position in its chosen market. Furthermore, it will be able to improve on its cloud computing platform, seeing as how Dyn’s products and services are close enough in nature that they can be considered a natural extension of said service. All of this is possible because Dyn is a proven business with thousands and thousands of clients, which happen to include a fair number of the most popular websites in the world, with examples including but not limited to CNBC, Netflix, and Twitter.

What Does This Mean for Both Oracle and Dyn?

In the short run, the two companies will continue operating on their own in an independent manner, which makes sense considering the sheer amount of work that will be needed to integrate Dyn’s operations into Oracle’s operations. However, interested individuals should expect more changes in the long run, though exact examples are still unavailable for the simple reason that Oracle is still reviewing the transaction for factoring into its plans for the future. It is possible that some of Dyn’s operations will be either merged or stopped, perhaps because of economies of scale or perhaps because their continuing existence will not be as beneficial for Oracle as for Dyn. Regardless, much remains unknown at the moment, meaning that people should continue keeping a close eye on the situation.

On a final note, it should be mentioned that this is not an isolated choice on the part of Oracle, which has bought out other companies for the purpose of strengthening its cloud computing platform in recent times. Furthermore, it should be mentioned that this is not an isolated choice for tech companies as a whole, seeing as how some of Oracle’s competitors have been making similar purchases for much the same reasons. Something that should be considered when examining the causes of this particular buy-out for further insight into the situation.