Oracle, one of the leading cloud giants, recently completed an acquisition of NetSuite, known for its cloud ERP software.
Oracle is taking steps to address the SMB market where NetSuite has long excelled, as well as demonstrate their dedication to cloud-first enterprise applications. With this acquisition, they’re showing they want a piece of this pie!
ERP
Oracle’s acquisition of NetSuite marks an enormous shift in ERP. This acquisition shows its commitment to cloud services, and increases their market presence among small-to-midsize firms.
Mark Hurd, Co-CEO of Oracle, sees this acquisition as an effort to accelerate their cloud strategy and anticipates that 70-80% of organizations will soon run their enterprise applications via cloud technology.
NetSuite will benefit from this agreement in several ways, primarily from strengthening its financial footing and being on more solid ground financially, which should make attracting customers easier and reducing implementations itself, which frees up more resources to continue developing the solution.
NetSuite and Oracle together will enable users to work more efficiently while also gathering the necessary information needed to make smarter decisions.
CRM
Oracle, an enterprise software provider, recently made its largest acquisition since PeopleSoft was acquired back in 2004. Oracle had been searching for ways to increase cloud revenue and expand their customer base.
NetSuite, a cloud-based business management software provider, offered solutions specifically suited to managing small and mid-sized enterprises.
Oracle’s acquisition of NetSuite will give it access to smaller companies while expanding its cloud product portfolio. The purchase should lead to greater adoption of cloud applications within Oracle and maintain its top market position within enterprise software industry.
CRM technology is essential to any organization looking to maximize customer relationships and boost productivity. Oracle provides solutions with robust marketing campaign management features, ROI measurement tools, and lead nurturing features – essential elements in an organization’s aim at increasing its customer relationships and productivity.
Ecommerce
Oracle has long been committed to cloud-first strategy, but their acquisition of NetSuite on January 1 marked an exciting new chapter. Co-founded by Larry Ellison himself, NetSuite initially provided accounting and ERP software over the internet.
Oracle’s acquisition of NetSuite will enable it to expand their services into new areas while creating a comprehensive suite of cloud applications for customers. There have been some concerns raised regarding its effects on ecommerce markets as well as on existing NetSuite customers who might feel more threatened by Oracle’s move.
As part of an acquisition, NetSuite data must be extracted, cleansed and loaded into a target system – meaning ecommerce companies must take special precaution to avoid data quality issues and data loss.
However, there are ways to ensure that the data from NetSuite will remain clean and accurate when moving it to a data warehouse or lake. This process involves data transformation and integration strategies; creating elaborate pipelines can take weeks or even months to complete.
Cloud
On Thursday, Oracle gave the cloud ERP market a significant boost with their announcement to acquire NetSuite for $9.3 billion. Notably, this acquisition will give Oracle access to small and mid-market markets which NetSuite has long specialized in.
NetSuite will use this transaction to restructure its business model from licenses and maintenance payments to subscriptions, freeing more sales and implementation resources to work directly on improving its software suite rather than outsourcing these tasks through partners.
Analysts note that while Forrester Research’s Paul Hamerman claims it may benefit customers, its acquisition may put more price pressure on renewals and streamline support procedures while weakening NetSuite’s unique culture, which was part of what made it so appealing in the first place.
Evan Goldberg, NetSuite’s CEO, explained to TechCrunch that the merger will result in a cloud ERP system capable of “evolve and grow over generations.” It represents an excellent move for both parties involved, while attesting to NetSuite’s dedication in meeting user demands.