Construction industry is huge but complex
The acquisitions of Aconex, Textura, and Primavera are indicative of Oracle’s (ORCL) intention to pursue the construction industry. According to Oracle, the global construction industry is worth $14 trillion, but the majority of projects in the industry are small and don’t require much software.
However, projects like corporate campuses and skyscrapers on an average require 30 million or more documents and drawings, according to Oracle’s investor presentation.
Managing complex projects is a challenge due to the huge amount of data, processes, and payments involved. Oracle estimates that 47% of large construction projects are over budget, while 51% are behind schedule.
Construction industry offers opportunity for tech players
Construction projects can involve tedious work due to piles of documents, complicated building codes, and multiple contractors and suppliers. Managing all these things is a costly and time-consuming affair. The tech industry sees a substantial opportunity in this market.
In regards to the difficulties faced in delivering projects, Mike Sicilia, said, “Delivering projects on time and on budget are the highest strategic imperatives for any construction and engineering organization.” He added, “With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.”