Tag Archives: oracle

The List of Companies that can Acquire is Smaller than you Think   


Yesterday, Bloomberg broke the news that have hired advisers to evaluate a potential takeover offer. The news spread incredibly rapidly and the CRM stock had to be halted due to volatility. When trading resumed, the stock was up 10% trading at an all time high.

As media outlets started speculating about the potential acquirers, there was a consensus that only IBM, Google, Oracle, Microsoft and SAP have the sufficient market cap and cash to afford what could be considered the second highest technology acquisition of all times. However, as we start analyzing each potential acquirer, we quickly realize that the list of smaller than we think.

Let’s take a look:


  • Pros: Microsoft seems to have over $95B in cash that could be deployed into M&A activity. The Redmon company has established a strong relationship with on the CRM side and an acquisition can help immediately help their Office365 and business suites. Other components of the platform like the social analytics and marketing platform can also be a great fit for Microsoft’s portfolio.
  • Cons: While the CRM suite seems to be a great fit for Microsoft, we can’t say the same about the the rest of the platform. Specifically, there is a strong competition between the Salesforce1/Heroku and Azure platforms which will be hard to reconcile. Additionally, keep in mind that Azure and Salesforce1 have been built in different technology stacks. Finally, a takeover offer doesn’t seem to be the style of the Satya Nadella and the current Microsoft board.


  • Pros: Acquiring will represent a string accelerator toi IBM’s SaaS business. Also the Salesforce1 platform fits nicely with IBM’s aggressive investments in the mobile and IOT spaces.
  • Cons: With only about $9B in cash, IBM doesn’t seem to have enough liquidity to embark in such an aggressive acquisition. Also, similar to Microsoft, IBM is heavily invested in their cloud platform which presents some serious overlap with the Salesforce1/Heroku stacks.


  • Pros:com can be a very strong and necessary addition to Google’s enterprise business. Additionally, Salesforce1/Heroku can help to expand Google Cloud’s capability set which is still trailing competitors like AWS or Azure.
  • Cons: Acquiring will be a strong shift from Google’s current trajectory making it’s enterprise business one of the most relevant business units of the entire company. Also, a hostile takeover doesn’t seem align with Google’s culture.


  • Pros: SAP has embarked in an ambitious effort to modernize its existing business suite. Acquiring could be the accelerator needed to effectively execute on those plans. The marketing and analytics suite seemed to be a perfect fit for SAP. Also, the Salesforce1/Heroku platforms can really help SAP’s struggling cloud business.
  • Cons: SAP seems to only have about $5B on hard which will require the German giant to take on some debt to pursue the acquisition.


  • Pros: Oracle seems to be a great candidate to acquire The CRM and business platform can really simplify and help Oracle’s chaotic SaaS business. Salesforce1/Heroku can be a great fit for Oracle’s Cloud stack which is lagging competitors like IBM, AWS and Azure. Also, don’t forget that leverages a lot of Oracle technology which will make the technical integration slightly less challenging. Finally the existing relationship between Benioff and Larry Ellison should not be ignored.
  • Cons: Oracle has reported to have around $14B in cash and another $30B in securities. In that sense, Oracle will have to assume some heavy debt to pursue the acquisition.

I hope the previous analysis makes sense. In addition to the previous list, Amazon, Alibaba and EMC could also be considered as potential acquirer although not at the same level of the ones included previous list. Is that enough for speculation? What do you think?

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Posted by on April 30, 2015 in Uncategorized


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Oracle Partners with Microsoft, and NetSuite but Still Looks Ugly.

After reporting disappointing numbers last week, Oracle’s Larry Ellison pre-announced a series of important and exciting partnerships with different cloud providers and hinted the names of Microsoft, and NetSuite. As promised, this week Oracle announced three different partnerships with the aforementioned cloud providers. While this is, undoubtedly, a very interesting move on the Oracle side, I find hard to believe is will make a difference in their current position in the cloud market. Despite these partnerships, Oracle still looks very boring in the cloud!

The Microsoft Deal

The essence of these partnership, Oracle will certify and support Oracle software — including Java, Oracle Database and Oracle WebLogic Server — on Windows Server Hyper-V and in Windows Azure. Microsoft will also offer Java, Oracle Database and Oracle WebLogic Server to Windows Azure customers, and Oracle will make Oracle Linux available to Windows Azure customers.

My thoughts?

From a Windows Azure perspective I find hard to believe this deal will make any difference on WebLogic or Windows Azure situation. While Windows Azure has supported Java for a long time, the uptake hasn’t been great within the enterprise customer community. Windows Azure has been more appealing to traditional Microsoft shops while developers building Weblogic applications are not necessarily crazy about the cloud.

More importantly, this deal doesn’t help Weblogic to stop the migration of developers to competitive platforms

The Deal

As part of this partnership, plans to standardize on the Oracle Linux operating system, Exadata engineered systems, the Oracle Database, and Java Middleware Platform. Oracle plans to integrate with Oracle’s Fusion HCM and Financial Cloud, and provide the core technology to power’s applications and platform. will also implement Oracle’s Fusion HCM and Financial cloud applications throughout the company.

My thoughts?

Very important deal for Oracle! However, this feels like helping out Oracle more than anything else. In terms of the impact, it’s very hard to tell. already runs on Oracle software and it’s difficult to imagine impactful the integration between the two SaaS platforms will be. Most enterprises require high level of customizations in order to implement these integrations.

The NetSuite Deal

Under the partnership, announced Wednesday, NetSuite will integrate its enterprise resource planning (ERP) software, which companies uses to manage various parts of their day-to-day business, with Oracle’s human resources (HCM) apps.

My thoughts?

NetSuite customer base is mostly composed for premium-medium size business. I am not really certain how popular HCM would be within that community that are not the typical Oracle buyer.


While all three deals represent a major change from Oracle’s traditional “take no prisoners” approach, it’s really hard to see any of these strategic alliances moving the needle for Oracle’s position in the cloud space. Regardless, it’s very good to see these level of collaboration between traditional rivals. Time will tell….

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Posted by on June 28, 2013 in Uncategorized


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Oracle Beats the Street but Still Looks Boring

teamoracle-380x252Oracle reported numbers yesterday and the results were better than expected. Earnings on a per-share basis were 64 cents, three cents above the consensus of 61 cents. Sales were $9.11 billion, beating the consensus estimate of $9.03 billion. The main driver for the outstanding performance was new software license sales, which rose by 17 percent to reach $2.4 billion. License updates grew 7 percent to $4.3 billion. Hardware revenue was $734 million.

And yet, it didn’t matter….

Somehow this remarkable performance couldn’t hide the fact that Oracle is becoming increasingly irrelevant in the modern enterprise software world. Other than current shareholders, Wall Street and the press I don’t think anybody was really interested or excited about Oracle’s earning report.

The enterprise software world is changing and changing fast and you have to wonder whether Oracle can continue buying their way out of irrelevance. In an enterprise software world driven by cloud, mobility, big data and social models, Oracle is still following the same rules that made it a dominant player in enterprise IT in the last three decades. The problem winds of the enterprise software world have shifted in a way that not even Oracle can afford to ignore.

When analyzing the pillars of the new enterprise IT world is hard to think about Oracle as an influential player in any of them.

Enterprise Mobility

As of today, Oracle has no presence or technology in the enterprise mobility space. Despite the increasing investments in the space by longtime rival SAP, Oracle keeps ignoring the enterprise mobility movements. At the moment, none of Oracle platforms have a well-established mobile presence and there is no clear roadmap for it.

Cloud Computing

Despite recent investments in the Oracle Cloud platform, Oracle can hardly be considered a strong player when comes to cloud platforms. In the infrastructure as a service (IaaS) space, Oracle Cloud looses hands downs when compared to competitors like Amazon’s Web Services, RackSpace or Google Compute Engine. In the platform as a service context, technologies such as Heroku, CloudFoundry,, Windows Azure or OpenShift are miles ahead of Oracle Cloud in terms of capabilities, market presence, developer and partner communities.


This is the area where Oracle might have seen the most traction lately with products such as Oracle Fusion CRM Cloud Service and the recent acquisition of Taleo and RoghtNow. However, this space is heavily competitive with large vendors like and SAP’s Success Factors or exciting new companies like WorkDay.


Exadata is a great technology but can’t really be considered an influential technology in the big data space. Startups like Cloudera, HorthinWorks, DataStax and many others gaining increasing traction with simple solutions, more agile distribution models and passionate developer communities which highly contrasts with the close and exclusive Exadata partner model.

So what can we conclude from all this?

Oracle earnings report was a great validation that the enterprise IT market remains strong but hardly a reason to be excited about Oracle technology roadmap. There are 2 words that come to mind when I think about Oracle these days in the new enterprise software world: Strong and Irrelevant.

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Posted by on December 19, 2012 in Uncategorized


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