News Analysis: Oracle Buys RightNow For $1.43B



SymbolPriceChangeADBE28.20+0.90 News Analysis: Oracle Buys RightNow For $1.43BCRM132.53+3.24 News Analysis: Oracle Buys RightNow For $1.43BGOOG596.42+5.93 News Analysis: Oracle Buys RightNow For $1.43BORCL32.87+0.75 News Analysis: Oracle Buys RightNow For $1.43BRNOW42.94+6.98 News Analysis: Oracle Buys RightNow For $1.43B{“s” : “adbe,crm,goog,orcl,rnow”,”k” : “a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00″,”o” : “”,”j” : “”}

d12b2 R Wang 640x480 150x150 News Analysis: Oracle Buys RightNow For $1.43B

d12b2 Screen shot 2011 10 24 at 10.38.50 AM News Analysis: Oracle Buys RightNow For $1.43Bd12b2 Screen shot 2011 10 24 at 10.38.41 AM News Analysis: Oracle Buys RightNow For $1.43B

The Acquisition Machine Heads To The Public Cloud

Users gathered at the Customer Summit 2011 at the Broadmoor Hotel woke up to the shocking announcement that Oracle (NASDAQ: ORCL – News) announced a $1.43B acquisition of leading SMB CRM vendor RightNow Technologies (NASDAQ: RNOW – News) today.  According to Thomas Kurian, “Oracle is moving aggressively to offer customers a full range of Cloud Solutions including sales force automation, human resources, talent management, social networking, databases and Java as part of the Oracle Public Cloud,” said Thomas Kurian, Executive Vice President, Oracle Development. “RightNow’s leading customer service cloud is a very important addition to Oracle’s Public Cloud.”

A quick analysis of the acquisition reveals:

  • Oracle sees RightNow as an anchor in its public cloud strategy. RightNow signals the first of many acquisitions foundational to a market place strategy.  CRM plays a pivotal role.  Bozeman, Montana based RightNow brings over 2000 customers, and 10 billion transactions per year in volume.  In fact, Kurian’s press statement hints at other areas that include anything from infrastructure to apps.

    Point of View (POV):
    Oracle’s success in the public cloud will require more than just a multi-instance virtualized cloud offering.  The lack of true multi-tenancy will prove to be a detriment to both customers and Oracle.  Oracle will need to deliver a multi-tenant version of Fusion Middleware to provide customers with the full range of deployment option choices from on-premise, hosted, multi-instance, and multi-tenant.  However, investors and customers should view the public cloud as more than an offering or technology play. In fact, this is Oracle’s new merger and acquisition vehicle.
  • Oracle pokes at Salesforce.com on the customer service side. While Salesforce.com would most likely not acquire RightNow, Oracle brings on a key customer service competitor to Salesforce.com and aligns it with the Oracle sales and marketing machine. Meanwhile, Oracle gains an emerging web experience and social experience product line to complement a robust contact center and solid customer experience suite.

    Point of View (POV):
    With most of RightNow’s customers coming from the customer support side of the house, Salesforce.com will feel the heat in the market place.  Despite the Assistly acquisition, Salesforce.com still has a lot of work to move the Service Cloud offering to par with competitors.  Quite frankly, this is a direct attack by Larry Ellison to Marc Benioff in this space.
  • Oracle plans a long term customer experience play. Oracle’s previous acquisitions of FatWire, Endecca, ATG, and Sigma Dynamics signal a potential play to get serious about customer experience management.  Oracle will need to re-purpose assets to the core CRM team to share in the innovation.

    Point of View (POV):
    Social business, online experience optimization, and gamification represent huge holes in Oracle’s product portfolio.  RightNow brings tremendous amounts of thought leadership to the table should Oracle retain the product teams.  More importantly, the SMB focus will help Oracle bring in a new customer base.

The Bottom Line

See The Bottom Line Analysis on the Software Insider’s Point of View

Your POV.

Does this announcement surprise you?  Are you a RightNow customer?  Will you be ready to make the leap with Oracle?  What has your experience with Oracle been post acquisition?  Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

Related Resources

20111024 IDG News Service – Chris Kanaracus “Oracle buys RighNow for about US $1.5B”

20111024 Wall Street Journal – Matt Jarzemsky “Oracle Buy Cloud-Based Right Now”

20111024 GigaOm – Barb Darrow “Why Oracle paid $1.5B for Right Now”

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

  • Subscribe via RSS