Wednesday, May 23, 2018
Why Oracle is spending $1.5 billion
Recently the question arises “Why Oracle is spending $1.5 billion on Responsys, 15-year-old company”? The answer is because Oracle doesn’t want Salesforce.com to capture the entire market share for cloud-based digital marketing software. This deal was announced by the Oracle on 20 Dec’13 and it will close in the first 6 months of the next year, 2014.
For their customers, marketers of Responsys design the customized messages on the basis of the information available with them about their customers and then deliver the message through different sources of media like text messages, social media ads, email, ads on websites etc. to get the desired response.
Oracle was using technology for business to business marketing by way of its Eloqua buy. Generally it is seen that technology is mainly used for marketing to the consumers.
As per the statement of Oracle in the press release, first time CMOs that support industries with B2C or B2B business models will gain good experience of customer satisfaction throughout their life from a single platform across marketing interactions. This is possible as Responsys and Oracle Eloqua are bringing together in the marketing cloud.
The company itself has made a few acquisitions from last several years and it is seen that during these days, it is having large no. of big customers including Burton, Intuit, Lego, MetLife, National Geographic, Thomson Reuters, and Whole Foods. In 2012, Oracle bought Eloqua for $871 million.
There is a research firm Gartner who has predicted that by 2017, more amounts will be spend on technology by the Chief marketing officer, instead of the chief information officer.
Oracle wants to use Repsonsys and its executive team members as the binding element for their cloud marketing offering. Staff of the Oracle thought that there are may be some opportunities for their company to enrich its capabilities around customer relationship management.
Oracle also announced its quarterly income of $2.55 billion so that they can spend $1.5 billion on Responsys. It is also known that the company paid around up to $500 million for BigMachines, the configure-price-quote software company.
Like the other companies, Oracle as a cloud software vendor also has high dreams .
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