More” was the operative word at an event here at Oracle headquarters Dec. 1 that focused on the software giant’s acquisition of NetSuite.
“It’s important to say that we’re thrilled,” said Oracle co-CEO Mark Hurd, who repeatedly insisted there was very little overlap between the two companies.
Both Hurd and NetSuite executives on hand said the $9.3 billion acquisition means NetSuite would have more access to developer resources, data centers for global expansion, sales and marketing and access to various Oracle services including Infrastructure as a Service and Oracle Enterprise Performance Management (EPM).
He called NetSuite key to Oracle’s overall cloud strategy because it brings with it hundreds of small-to-mid-sized customers. “Now we can go from startups to the largest enterprise companies with our solutions,” he said.
Oracle announced its intention to acquire NetSuite in July, but the deal just closed on Nov. 7. Hurd said a major reason for the Dec. 1 briefing was to discuss what the deal means for each company’s customers. As public companies there were restrictions on what officials could say while the deal was pending regulatory approval.
One point he made clear was that NetSuite will continue as its own global business unit and that Oracle intends to invest in the product line. “NetSuite products will go on forever. Our intent is to keep NetSuite and invest in it,” said Hurd. “Customers will get access to all of Oracle’s resources and Oracle’s [software] stack .”
Pund-IT analyst Charles King said Oracle’s acquisition of NetSuite was a good move strategically. “Though NetSuite has never been profitable, its losses are tiny when compared with Oracle’s overall profitability,” King told eWEEK.
“Plus, since NetSuite has enjoyed solid growth—more than doubling its revenues between 2012 and 2015—its momentum is something Oracle can build on. The company will provide its new parent with valuable additional exposure among SMB and add muscle to Oracle’s cloud strategy and offerings.”
King also says some customers may be concerned that Oracle’s large enterprise focus will make NetSuite something of a second class citizen at the company.
Originally published on eWeek
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