Failing oracle, unable to keep up with competition in the cloud had to make yet another expensive acquisition, this time of Aconex. All of which raises a simple question: why does oracle have a huge and hugely expensive Development group and how competent are its leader, TK, and the CTO of the company, a certain LE?
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The Vampire s--- them dry and find new victims for fresh blood strategy. Me thinks treating customers well works better
When your strategy is to rape and pillage existing customers, you need to buy new companies to bring you new, unsuspecting victims
This acquisition is really strategic, but only for financial reasons. Simply because the dummy "cloud growth" from the Netsuite acquisition is coming to an end next quarter, and Aconex will be useful in "demonstrating" some more 4 quarters of supposed cloud growth. Only financials, Oracle is just "buying" the cloud growth they need to survive to WS raising doubts and fears.
Until Oracle has this amount of cash, this is a game they can play easily.
Oracle has to keep making cloud acquisitions no matter how expensive or crappy, that’s the only way it can have SaaS revenues, until it Kills the acquisition and has to make the next one,
this is a long trail of failed acquisitions that never ends, it just goes on and in my froends a geeedy dummy named SC stared it ....
Aconex was running at a loss supposedly but kept receiving further investments by venture capatilist, it was then floated on the ASX and earlier in the year the company downgraded its full-year earnings and revenue forecast. Not a good acqusition.
I thought LE said there was nothing left to buy and the growth in the future was going to be "organic growth"! Guess that was crap, too.
What happened to the "organic growth", LE?
Here's the link:
https://www.oracle.com/corporate/pressrelease/oracle-buys-aconex-121717.html
I heard they tried to buy Palantir last year. Guess that fell through?
BORING. Same old boring post...can't you come up with any new material?
Pretending to be a cloud company is expensive, but oracle needs these acquisition to create an impression of growth. Yes, smart people can factor it out, but at this stage oracle is just desperate to report some semblance of revenue growth any which way, no matter how much it has to pay for it. A bunch of desperate dummies wasting shareholders’ cash to justify their jobs. Corporate governance at its worst!
A$1.56 billion ($1.2 billion), .... , sending the target’s share price up 45 percent.
Sounds like a good price.
Apparently Aconex is an Australian company, but no-one seems to have heard of it. I hope they screwed Oracle out of way too much money.
It's true they will fire half of the staff. That's Oracle M&A strategy. Oracle has almost finished firing every Australian based engineer - both R&D and support. Software and hardware support and spares are all coming from India.
Oracle is becoming a SaaS holding company. They will tell investors that "we are a one-stop SaaS company for all industries" with an "integrated platform." In reality, it's just a bunch of unrelated and unintegrated software titles from multiple acquisitions. When Oracle takes over, if they start cutting benefits, commissions, and bonuses and start laying people off (which they will), lots more people in the acquired company will leave. Product quality and support will suffer. Whether the product continues to be enhanced is something up to Oracle.
You can bet the farm that Aconex personnel in Finance, HR, facilities (remote offices) and IT will be laid off and replaced with Oracle equivalents. Oracle assimilates new companies very quickly. Salespeople will be on a transitional / overlay team for a few months; then they will leave or get laid off. The technical people will fare better, but they may not want to work for Oracle given the large number of opportunities today.
Never heard of Aconex.