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Oracle To Buy Cloud-Software Provider NetSuite For $9.3 Billion (bloomberg.com)
Oracle announced Thursday that it has agreed to buy NetSuite for $9.3 billion, in a move to bolster its cloud-computing offerings as it races to catch up to rivals. Both companies provide applications for running a business called enterprise-resource-planning software. Bloomberg reports: Oracle, which sells software to big corporations, has been trying to shift more sales to cloud-based products increasingly demanded by its customers. New cloud services made up about 8 percent of the company's total sales during its fiscal fourth-quarter. Buying NetSuite -- whose products include customer relationship management software -- will help Oracle compete against the likes of Salesforce.com Inc. and Microsoft Corp. "Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever," said Oracle co-Chief Executive Officer Mark Hurd in a statement Thursday. "We intend to invest heavily in both products -- engineering and distribution."
Does this mean that Net Suites usability & functionality are going to be downgraded to the banging the rocks together level of Oracles other offerings?
Build a Man a Fire, and He'll Be Warm for a Day. Set a Man on Fire, and He'll Be Warm for the Rest of His Life.
Salesforce's backend is Oracle, I wonder how that relationship works out. I bet Salesforce is one of their larger accounts, it must be awkward at times "thanks for all the license fees but, yeah, we're going to compete with you in the CRM and PAAS space". Salesforce is very very wide and deep, they've grown so far beyond where they started, I'd say they're more of an ERM and process automation tool than a sales tool these days.
I came to the datacenter drunk with a fake ID, don't you want to be just like me?
:-) I noticed the pump and dump market trolls don't want to see their game exposed.
The vultures, as in patent trolls. Nobody else will really benefit.
Yeah, that's a given. I was kinda wondering which party is being set up as the pansy on Black Tuesday.
The way you can benefit is to cash out when its still possible...
Probably you can stay in it until around mid September, August for the really paranoid... Buy back in January, after the dust settles a bit, depending who wins.
“He’s not deformed, he’s just drunk!”
When we bought into NetSuite 8 years back, we were told they were owned by Oracle.
I wonder if they got sold, and then now being bought back.
Honestly though, NetSuite's service has been getting worse and worse every update. For the price they charge (not to mention nickle and dime you for most feature), who could not think they were already owned by Oracle.
Oracle is all in on this cloud stuff. They were late to the cloud game and are now playing catch up to Salesforce and Workday. So now Oracle (and SAP as well) are snapping up cloud based products. It's the flavor of the month.
What Oracle has figured out is that it is actually more profitable to sell SAAS software than traditional on premise software. With on premise software you have to support lots of different databases and middle ware and OS's. That makes your development and testing exponentially more difficult and expensive. With SAAS you only have to support one stack - yours.
Customers give up a lot of control for the convenience of SAAS based products. And the dirty little secret is that SAAS actually costs you more money in the long run. This is why Oracle is so eager to jump on the cloud bandwagon. It's not about doing what their customers want - it's about making more money. On a conference call about 3 months ago Ellison came right out and said that cloud is more profitable.
Think of it like buying vs leasing a car. Leasing gives you convenience but every study I have read says that buying the car is cheaper in the long run. Eventually customers will catch on to this and cloud will vaporize. But until then there is money to be made and made it shall be.