Another day, another multi-billion pound acquisition in the tech industry.
The latest deal sees software giant Oracle purchase cloud firm NetSuite for around $9.3 billion (£7 billion), which is expected to be completed this year.
It follows other big acquisitions in the market including Microsoft’s purchase of LinkedIn, SanDisk’s merger with WD, Dell’s EMC acquisition, Ingram Micro’s sale and so on. In the UK we’ve seen the likes of Exertis buy Computers Unlimited and Westcoast acquire ArtSystems.
As usual, the purchaser on this occasion says that both companies are complementary.
"Oracle and NetSuite cloud applications are complementary, and will coexist in the marketplace forever,” said Mark Hurd, Oracle CEO. “We intend to invest heavily in both products – engineering and distribution.”
Zach Nelson, CEO at NetSuite, added: "NetSuite will benefit from Oracle’s global scale and reach to accelerate the availability of our cloud solutions in more industries and more countries. We are excited to join Oracle and accelerate our pace of innovation."
Others have described Oracle as a monster that’s just going to get bigger, and mentioned the ‘FrankenCloud’ – a term used to describe a business that uses a patchwork collection of disparate cloud applications and technologies.
Jeremy Roche, CEO of NetSuite rival FinancialForce, told Computerworld: "One of the biggest issues plaguing organisations is the FrankenCloud, and we’ve learned that Oracle will grow into an even bigger monster as it gains more bolt-on appendages, including another cloud technology stack and another set of ERP and CRM apps.
"NetSuite customers are at risk of being drawn even more deeply into the nightmare of the FrankenCloud. Oracle’s ERP and CRM acquisition track record and string of casualties will only add to customer uncertainty."
Rob Reid, CEO of ERP vendor Intacct, added: "This move underscores the importance of pure-play cloud ERP services and solutions, and of the mid-market."