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Cloud Oracle Businesses Software

Oracle To Buy Cloud-Software Provider NetSuite For $9.3 Billion (bloomberg.com) 32

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."
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Oracle To Buy Cloud-Software Provider NetSuite For $9.3 Billion

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  • "... coexist in the marketplace forever".
    when people use words like "most popular for all time" https://apple.slashdot.org/sto... [slashdot.org] , "best", "forever " for their products, in markets that is inherently changing and dynamic, they either don't know what they are talking about or are placing dishonest hype above truth.
    in either case, customers should be beware of them and their hyped products, just for using that language.

  • by Big Hairy Ian ( 1155547 ) on Thursday July 28, 2016 @10:01AM (#52599265)
    Does this mean that Net Suites usability & functionality are going to be downgraded to the banging the rocks together level of Oracles other offerings?
    • by Anonymous Coward

      Maybe not considering NetSuite was co-founded by Larry Ellison in 1998 as NetLedger. Ellison sits on the board and owns 40%, which means he will net about $3.5 billion from the deal. Evan Goldberg is the other NetSuite co-founder and an Oracle alum who thought up the idea of doing CRM over the Internet while in a meeting at Oracle. Also in this meeting was Marc Benioff. Ellison thought it would be better to do financials before adding customer relations and Goldberg agreed, with Ellison funding it out of hi

  • by trybywrench ( 584843 ) on Thursday July 28, 2016 @10:15AM (#52599379)
    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.
    • by bazorg ( 911295 )

      it's all weird and incestuous :)

      Salesforce partnered up with Microsoft, probably to run a lot of their stuff on Azure. I mean, the Microsoft Dynamics family is probably smaller than SFDC, but they are still competitors.
      One day we'll probably find out that Azure runs on the Amazon cloud and Google is hosted in a farm of MacMinis from a basement in Cupertino.

    • by SQLGuru ( 980662 )

      I guess all of their other CRM products/platforms weren't very good (i.e. Seibel and others)......or maybe it's because Oracle already ran those into the ground and needed to buy some more customers.

  • Comment removed (Score:4, Informative)

    by account_deleted ( 4530225 ) on Thursday July 28, 2016 @01:10PM (#52600959)
    Comment removed based on user account deletion
    • by Dan B. ( 20610 )

      From what I understood NetSuite is half owned by Larry (as the Ultimate Controlling Entity), not Oracle directly. It would appear that he's just shifting the ownership from personal control to corporate control, and paying a handsome sum in the process

  • Oracle buys more intellectual property so they can attempt to generate more revenue via lawsuits rather than by doing anything useful
  • by erp_consultant ( 2614861 ) on Friday July 29, 2016 @01:25AM (#52604769)

    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.

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