Saturday, July 26, 2008

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With acquisition of BEA, will Oracle now beat IBM?


Oracle’s quest to become a heavyweight in the middleware segment and its subsequent acquisitions of technology vendors doesn’t seem to be getting over. In 2004, it fought a hard battle to get its hands on PeopleSoft for $10 billion. It went ahead and acquired Siebel Systems for $5.8 billion in 2006. Even 2007 saw Oracle get Hyperion Solutions for $3.3 billion. And now on Jan 16, 2008 Oracle added yet another name to its impressive portfolio with the acquisition of BEA Inc. for a sum of $8.5 billion.

Analysts from Gartner feel that Oracle’s acquisition will have major repercussions in multiple markets that include the integrated service-oriented architecture governance market, as Oracle did not have a competitive product in this market. This acquisition also puts in Oracle in the comfortable number two spot in the middleware market, trailing behind IBM.

So, after PeopleSoft, Siebel Systems, Hyperion Solutions and BEA, what next for Oracle? David Mitchell, analyst at Ovum, told 4Ps B&M, “I expect that Oracle’s appetite is still not satiated. My hunch is that the next move will be in the industry-specific applications category.” Whatever might be the next move for Oracle, the acquisition of BEA will place it better to fight against its rivals like IBM and Microsoft, but it is certainly not enough to snatch the number one spot from IBM.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative