Is Oracle Finally Delivering the Network Computer?
If Larry Ellison and Oracle can not build and deliver a successful Network computer as they proposed doing in the 1990s then the next best thing is to incrementally piece together all of the component parts to deliver on their decades long dream. Oracle has just fitted another piece of the puzzle with Acme Packets... With this acquisition they bridge the divide between their database, an app running on a mobile device and the great ether between the two.
Having an integrated communications service capable of supporting their front and back ends will only help to further deliver a homogeneous vendor solution to their growing global client list.
Whether an organization chooses to self host their servers, use a cloud based solution, or a hybrid cloud architecture, organizations continually strive to simplify and reduce the overall vendor count that deliver these critical services. Now Oracle can further deliver on this promise.
Oracle intends to integrate Acme's offering with its own communications product portfolio, alongside other core network products such as its network application platform and tools to manage service availability.
The move will enable it to help service providers monetize their IP networks, according to a statement from Oracle.
That's a matter of perpetual concern for network operators concerned that they will become nothing but a commodity "bit pipe" as application providers reap all the profits.
Oracle faces a saturated market for the product among major telecommunications companies as 89 of the world's top 100 communications organizations are already Acme customers, it said. Oracle will use Acme's presence in those accounts to up sell customers on its broader array of offerings for communications providers.
A document about the deal released on Monday by Oracle includes a diagram showing how Acme's technology will fit within Oracle's "core network" product portfolio, in between sales, billing and supply chain applications on one side, and end-user applications and devices on the other.
Oracle also plans to bring on Acme Packet's staff following the transaction's close, according to the Oracle document. Additionally, Acme employs "880 domain experts in IP networking."
"The communications industry is undergoing a dramatic shift as users become more connected and dependent on mobile applications and devices" said Bhaskar Gorti, senior vice president of Oracle Communications, in the company's statement. "Service providers and enterprises need a comprehensive communications solution that will enable them to more effectively engage with their customers."
The Acme Packet deal continues Oracle's spending spree. In December, the database giant announced a $810 million deal to acquire cloud specialist Eloqua, the latest in a string of acquisitions.
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