Taleo fill some gaps in Oracle's line-up

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 line-up.

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 space.

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