Sunday, July 31, 2016

Oracle Acquisition of NetSuite Is a Mixed Bag

Oracle took another step in its strategy of growth by acquisition by announcing a bid for NetSuite, the leading player in the cloud ERP marketplace in terms of number of customers. At $9.3 billion, the deal is the second biggest in Oracle’s history, after PeopleSoft in 2005 for $10.3 billion.

The deal was long expected, for several reasons. Oracle Chairman Larry Ellison was NetSuite’s original investor, and Evan Goldberg, NetSuite’s founder came out of Oracle. CEO Zach Nelson was an Oracle marketing executive. Oracle’s database is an integral part of NetSuite’s infrastructure.

But apart from helping Oracle in its race with Salesforce.com to get to $10 billion in cloud revenues, what are the benefits of the deal to Oracle? How does it help NetSuite, and what does it mean to the broader marketplace? Looking at the big picture, there are certainly benefits, but there are also several concerns.

Read the rest of this post on the Strativa blog: Oracle Acquisition of NetSuite Is a Mixed Bag
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1 comment:

clive boulton said...

Very key for SMBs and tier 2 plant level ERP.

quotage: “NetSuite is one of the few vendors—cloud or traditional—that has a fully integrated solution for ERP, CRM, and e-commerce in one system."

On sales. We could nearly always beat Oracle sales by pricing our integrated solution at about $220,000 (every thing we have and the kitchen sink). Oracle's sales force almost always quote $250,000 (has to be something to do with commissions).

10:03 PM, August 01, 2016

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