6 Oct

Oracle Will Keep Posting Growth in the SaaS Space

WRITTEN BY Anne Shields

Oracle’s strategic acquisitions in ERP space

As we discussed earlier in this series, Microsoft (MSFT) emerged as the leader of overall enterprise SaaS (software-as-a-service) space, and Salesforce (CRM) continues to rule the CRM (customer relationship management) space. It was the Oracle’s dominance in ERP (enterprise resource planning), the segment that grew the most in the SaaS space, that led it to register the highest growth in the SaaS space in 2Q16.

To further strengthen its position in the SaaS space, Oracle (ORCLannounced the acquisition of LogFire. Oracle aims to integrate LogFire’s WMS (warehouse management applications) solutions into its SCM (supply chain management) cloud. SCM is an integral part of the enterprise software space that also encompasses ERP, embedded software, and CRM. ERP and CRM are rapidly growing sub-segments of SaaS.
Oracle Will Keep Posting Growth in the SaaS Space

In late July, Oracle announced the acquisition of NetSuite for $9.3 billion, which is company’s largest acquisition after the PeopleSoft acquisition for $10.3 billion in 2004. Apart from strengthening its foothold in overall cloud space, Netsuite would provide Oracle access to SMB (small and mid-size companies) and mid-market for its ERP offering, thereby expanding its reach.

Cloud adoption to drive growth

Oracle’s focus on the ERP space is opportune because the space is expected to witness significant growth by the advent and arrival of the SMAC (social, mobile, analytics, and cloud) revolution that has led companies to shift from on-premise ERP to cloud-enabled ERP.

According to Allied Market Research, the global ERP software space is expected to grow at a compound annual growth rate of 7.2% to reach ~$41.7 billion per year during the 2014–2020 period.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.