Oracle's "face" frequently buys cloud company: Sword refers to SAP

Recently, Oracle and SAP companies have frequently acquired news from SaaS Cloud computing startups, such as Oracle's acquisition of RightNow and Taleo; SAP Acquisition SuccessFactors etc. However, the success of acquisitions is only one small step in the transition strategy, but the effect of time testing is not satisfactory.

We know that SAP is the leader in ERP field. Five years ago SAP planned to buy cloud computing companies to revamp its businessbydesign business. According to Saleforce Http://www.aliyun.com/zixun/aggregation/18272.html, chief strategist and marketing director Tien Tzuo, the current business has only 1000 clients, This is not even 1% of SAP's entire customer population, which has already had 100,000 customers since Salesforce.

Similarly, 3 years of ignoring cloud computing Oracle is now on the "face", not only in the cloud business related to the acquisition of companies frequently exerting force, but also to their opponents SAP step-by-step. But a slightly lagging takeover has made the industry laugh that it is only a "follower".

At first, Oracle's response to cloud computing was to use its own private cloud services to grab back the mainframe market. It has acquired RightNow, Taleo. Oracle's correct approach should be to reinvent its entire business structure to provide the next-generation service platform for the enterprise, which is entirely feasible in the prevailing market environment. "Saleforce former chief strategist, marketing Director Tien Tzuo evaluation Way. "The reason Oracle is" wrong "means that Oracle is not ready to be a cloud leader.

To sum up, SAP, Oracle and dealers would have been unwilling to do so. Industry giants are generally negative in the early stages of new technology, but when they see market share being invaded, even a little bit, the temperament of the industry giants will allow them to pay a lot of money to buy some start-ups to keep "expanding innovation", which is not an offense, but a defensive strategy.

A similar example can be seen: for example, Siebel is trying to buy upshot to transform, and the reverse is saleforce; for example, Yahoo is trying to buy broadcast to expand new markets, the opposite is YouTube; and Cisco buys Pure Digital, Trying to make video calls a standard for smartphones; Time Warner buys AOL to tap the Internet and so on.

Tien Tzuo, former chief strategist and marketing director at Saleforce, believes that the acquisition of cloud computing companies will not make you a cloud company, as you would have Jeremy Lin to play in China and not turn the CBA into the NBA. SAP, Oracle, while trying to keep the market leader in place, has not really focused on technology, and the dynamic client resources that cannot be fully ported make their acquisitions nominal.

Further pondering, in the era of the general trend of the cloud, if SAP and Oracle can not move from the declining ERP to the information cloud services, or they do not continue to adhere to the host market last territory, then they or on the journey of the cloud drift away or cut the only market share.

(Responsible editor: Lu Guang)