Oracle acquires $1.9bn Taleo for all out offensive on the cloud
Oracle are finally committed to embracing the cloud
Oracle have procured enterprise talent management
provider Taleo Corp for $1.9bn, cementing the IT giant’s
commitment to embracing the cloud finally. It is Oracle’s second
large acquisition in recent months after Oracle paid $1.5 for
RightNow Technology. This is a sign “that the software industry’s
old guard is embracing a newer model.”
CEO Larry Ellison has been assertive in adding cloud-based
software offering over the past few years, so this latest purchase
comes as no surprise. Ellison has added more than 70 companies
in a $40 billion buying spree to add programs that help large
corporations manage human resources and operations.
Oracle has been trying to catch the cloud pack and this move
will take a hit out of SaaS leader Salesforce, a company which is
owned by former Oracle executive Marc Benioff.
This acquisition could level the playing field in their
capability of managing human resources.
Taleo makes software that enterprises use to recruit and track
job applicants, conduct training and human-resource functions. What
is different about Taleo compared to Oracle’s other software
purchases, is that Taleo products are delivered online and accessed
via a web browser.
This is a strategic purchase for Oracle, as analyst Michael
Nemeroff stated, Taleo clearly fill some gaps in Oracle’s
They did not have a recruitment package. They always needed to
develop or buy it, and they have done it.
With this acquisition it is clear that Oracle is committed to
becoming a major-league player in the enterprise cloud services
business. At only $46 per share, Oracle is now the owner of the
world’s second –busiest software as a service (SaaS) solution
provider. This won’t be Oracle’s last cloud purchase this year,
that much is certain. Oracle is hot on the heels of SAP. Watch this