Cloud analysts are buzzing about the possibility of Oracle buying up smaller ventures in efforts to extend its own cloud computing endeavours. Reports indicate that Oracle intends to sell $10 billion in bonds which will raise cash for what many analysts are dubbing a cloud startup shopping spree. The database giant has not been shy about acquiring smaller outfits. It seems as if this strategy seems to benefit Oracle’s cloud ambitions.
As the world of cloud services begin to mature, Oracle must fill up its portfolio with cloud companies that give Oracle a presence in emerging cloud verticals. How does Oracle plan on utilizing this 10 billion dollar infusion? That’s still up for debate but when you look at what Oracle currently has in its cloud portfolio; it is easy to see what Oracle is missing.
For example, Oracle is missing an IoT cloud service within its portfolio. There are plenty of candidates for Oracle to snatch up but many of the market leaders will fetch at least a billion at the time of sale. CIO mentions that Jasper, Axeda and Aeris Communications could become targeted for buyouts by a company such as Oracle. An IoT acquisition could match up nicely with much of the existing infrastructure and technology that Oracle has at its disposal.
Regardless of what Oracle decides to do with the cash, financial analysts have noted that Oracle has been stockpiling cash for well over the past year. On May 31st, financial analysts indicated that Oracle had around $20 billion in cash on hand. When you add in an additional $10 billion on top of that, it makes you wonder if Oracle is about to go on a cloud startup shopping spree or if Oracle is just moving its cash around to engage in “Financial engineering.” Given Oracle’s propensity to jump into new cloud verticals, it seems as if Oracle is building its war chest to become a major player in cloud.