Oracle to acquire Acme Packets organisation
1 min read
Oracle has announced its intention to acquire telecoms specialist Acme Packets, giving the software and services giant an interesting level over the converging systems and networks environment.
Dana Cooperson, principal analyst with Ovum, believes the acquisition should strengthen Oracle's hand both with enterprises and carriers, giving it a central role in controlling and improving how devices and users interact.
"Oracle's move to acquire Acme Packets illustrates several very important trends in global communications," says Cooperson.
"Telecom and IT are coming together in ways that are shifting the vendor competitive framework significantly," she explains. "IT-focused companies like Oracle see a real opportunity to strengthen their position in both markets through extending their product lines, so are acting aggressively."
However, she also identifies other shifts: "Software is increasingly driving network capabilities. Although hardware is still important in many applications to provide the performance, software is more and more critical for both differentiating and monetising network capabilities.
"Communications needs are anytime, anywhere. People want to be connected ... through a variety of devices and access means. Controlling these sessions securely and at the needed quality is increasingly critical."
For Cooperson, therefore, the deal is strong – and more will follow. "Oracle Communications has a value proposition that encompasses telcos, enterprises and other ICT infrastructure vendors. In fact, Oracle both sells to and competes with telecom infrastructure vendors.
"But unlike many of these companies, Oracle has a comparatively large bucket of cash to use for acquisitions – as a communications infrastructure vendor bested only by Cisco. Oracle and Cisco can both afford to be aggressive with M&A whereas many of their peers cannot. Expect the buying spree to continue."
