As Oracle announces 2 new acquisitions in 2 days - Stellent and SPL WorldGroup. Jason Wood writes an admiring note:
"Putting aside the potential strategic value of any given acquisition, they've used discipline in terms of the financial returns they can generate from the reliable maintenance revenue streams each deal brings with it. On the strategic front, the sum total of these purchases means the Oracle bag carriers have an unending supply of things to pitch CIOs and other IT purchasing agents."
As I prepare for the weekend, I will join Jason in admiring the blistering pace and the landscape transforming acquisitions Larry and company have been making. As an industry observer, how can I not say "wow"?
And I have liked its previous vertical acquisitions - Retek, i-Flex, and now SPL Worldgroup (which offers public utility functionality which so far has been the domain of custom built systems many by Accenture, and increasingly a strong market for SAP)
But come Monday, I will have to put my hat back on as a counselor to technology buyers. And I have to ask is this the best use of maintenance dollars for Oracle customers? What uncertain future does it mean to acquired customers? Is Oracle anywhere as disciplined as a GE or a Cisco in integrating acquisitions - SWAT teams and cookbooks to ensure successful product, process and people integration?
Just about a decade ago the so-called "CA clause" started showing up in many software contracts - as CA went on an acquisition spree, customers wanted the right to walk away from any long term commitments if CA acquired their software supplier. Last year, I posted this blog about an Accenture survey on CIO view of software M&A. They are just not as admiring as Jason of Oracle's acquisition spree.
But it's still the weekend. So, let me join in Jason's admiring words for Larry:
"These are Halcyon days for Larry Ellison. Not only is his stock enjoying a Renaissance (5-year highs) but there is arguably no software executive who loves to see himself and his company in print more than Larry does."
