Oracle buys Taleo for $1.9b{4}

by Han C
This article was release just two weeks ago as the competition for cloud applications market share started heating up. The Wall Street Journal reports that Taleo has agreed to merge with Oracle for a whopping $1.9 billion. According the the article, Oracle’s Fusion Middleware which has been in the market for years will now be able to include Taleo’s employee recruitment, training and management tools into its suite. Enterprise customers would then be able to purchase Oracle Fusion and have more than a dozen featured applications to choose from. This merger will allow both Oracle and Taleo to invest more into SaaS R&D. Earlier SAP’s merger with SuccessFactor which was negotiated for $3.4 Billion. Oracle initially did not pursue cloud services but has since changed its mind. Now Oracle will be able to team up HR cloud software with predictive analytics.

I chose this article because Oracle is powerful player in database software industry and is also a company which I have been following for some time. This acquisition implies that there is indeed some potential for software as a service which could mean that database engineers could be engaging not just in on-site data management but might need to have some knowledge of how cloud services operate as well. I feel that this is a very bold move for Oracle to make considering the slow adoption of SaaS amongst large corporations. SaaS is primarily used in small and mid-sized companies because it is still too difficult to manipulate the quantities of data that large companies have but maybe this might change as time progresses. It will be very interesting to see how Oracle will adapt Taleo’s applications into its own.

Sources: Jones, Steven. 2012. Dow Jones Newswires. Wall Street Oracle To Merge Its Fusion And Taleo HR Management Software.

Related article: Hubler, David. 2011. SAP’s $3.4B acquisition accelerates battle with Oracle. Washington