Oracle buys Taleo for $1.9b

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 Journal.com. Oracle To Merge Its Fusion And Taleo HR Management Software. http://online.wsj.com/article/BT-CO-20120224-710260.html

Related article: Hubler, David. 2011. SAP’s $3.4B acquisition accelerates battle with Oracle. Washington Technology.com.http://washingtontechnology.com/articles/2011/12/05/sap-merger-successfactors.aspx

4 thoughts on “Oracle buys Taleo for $1.9b”

  1. Great article! I believe the SaaS you mentioned in your summary is Software as a Service? As I also did my blog on SaaS, it seems like many companies are heading that direction, maybe one day we will not see any more retail software and just everything over the cloud and pay-per-use software.

  2. Very informative article, I cant believe how much the company merger cost. But in the world of cloud computing , it seems to be taking off. Being in this class has thought me how expensive physical computing can be, and the benefits an disadvantages of cloud computing. I have read that more companies are switching to cloud computing due to the lower costs and convenience. Will cloud computing be the next internet boom?

    1. That's a really good question, only time will tell. Not sure if the five nine up time percentage plays a huge role either. Cloud computing service level agreements are still currently rated at 99.999% up-time, which according to this article (http://cloudcomputing.sys-con.com/node/674934) means that it is only scheduled to be down five minutes and fifteen seconds per year. Most hosting services offer 99.99% up time.

  3. Great article. This is a big investment of Oracle to merge in Taleo. It is interesting that now Oracle want have cloud services because before they didn't have any intention to get cloud services. Thank you for posting article Steven.

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