Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Oracle takes cloud shortcut, overpays for Netsuite

Oracle paid US$9.3 billion in cash to buy Netsuite a cloud ERP company. The move will help bring the database giant up-to-speed in the market for cloud business apps.

It needed a boost. Oracle has dismissed cloud computing in the past and has been slow at getting onboard.

While Amazon and Microsoft were busy building cloud portfolios, Oracle still pushed on-premise computing.

As reported in The New York Times, the deal beefs up the database giant's cloud offering.

Oracle will pay $109 per NetSuite share in cash, according to a news release issued by Oracle on Thursday. That represents a 19 percent premium above NetSuite’s closing price on Wednesday.

The deal surprises no-one. Netsuite has always been close to Oracle. Perhaps too close. An ex-Oracle executive founded Netsuite, its current CEO also worked for Oracle. Oracle boss Larry Ellison provided capital in Netsuite's early days. He remained a significant shareholder with about 40 percent of the company's stock.

Some will raise eyebrows at the price Oracle paid. Many in the tech sector think Netsuite stock was overvalued.

It won't help conspiracy theorists that Ellison pockets US$3.5 billion from the deal.



Yet as Ben Kepes writes in Computerworld:

Oracle was quick to inform the world that the deal was decided upon by a subcommittee consisting of only independent directors of the company.

The news may not be good for customers. Oracle has a history of putting the price squeeze on customers after an acquisition. Not only that, but it has a rigid, old-school approach to licenses, renewals and support. Netsuite has always belonged to the more approachable SaaS world.

Nor is it good news for Netsuite employees. Oracle has a reputation for brutal efficiency when culling staff after a take-over.

Still, Oracle does acquisitions better than most technology companies of its scale. You can expect the new owner to sniff out the value propositions, repackage them and get them to market fast. The deal will also speed Oracle's own cloud transformation.

This story was first posted at billbennett.co.nz

© Scoop Media

 
 
 
Top Scoops Headlines

 

Resignation Of Metiria Turei: Were Journalists 'just Doing Their Job'?

In our research we examined the role of journalism in animating the Turei controversy and the different perceptions of professional journalists and online commentators sympathetic to Turei’s left politics. ... More>>

Gordon Campbell: On The Extradition Of Julian Assange

It isn’t necessary to like Julian Assange to think that his extradition to the US (on the charge of aiding and abetting Chelsea Manning) would be a major injustice... More>>

ALSO:

Gordon Campbell: Islamic State Meets The Searchers

The histories of the European children forcibly recruited into Native American tribal life during the 19th century do remind us of just how difficult the social re-integration of the children of ISIS is likely to be. More>>

Joseph Cederwall: CJR Analysis Of Post-Christchurch Media Coverage

After the Christchurch massacre, Columbia Journalism Review analysed news sources to see how outlets complied with guidelines from groups that seek to limit the amplification of terrorist acts through media. More>>

News Deserts: The Death March Of Local Journalism

Joseph Cederwall: The corporate media sector seems unable to do anything to halt the raging dumpster fire of consolidation, layoffs and centralisation of content production. All this means we are increasingly seeing ‘news deserts’ appearing in local communities. Illustration by Paul Sahre. More>>

ALSO: