Market move – Oracle buys Datalogix - the next gen Apps view

This morning we learnt that Oracle has acquired Datalogix, the provider of consumer data that fuels marketing campaigns.

Instead of dissecting the press release in the usual ‘myPOV’ fashion, let’s take a step back and see what this means for the Oracle acquisition strategy, the evolution of enterprise software and next generation applications.

Here are some key data points to consider going forward:

  • We are seeing the end of transactional applications - At this point large serial acquirers of enterprise software vendors like Oracle have no further attractive targets. Either from a valuation perspective (e.g., from a built in house and now good enough perspective (e.g. Workday) or a regulatory perspective – there are no more traditional enterprise software targets to acquire. So data service companies are a worthy target.

  • There is more than software to subscribe to – Oracle, probably better than its key competitors, understands that future revenue streams do not have to come from software subscription revenues alone, but can come also from data service royalties. 

  • Oracle is the only enterprise vendor serious on DaaS (so far) – Frankly I was surprised when Thomas Kurian positioned DaaS (Data as a Service) on equal footing with the usual three musketeers of the on demand world – IaaS, PaaS and SaaS. Back in spring 2014, more here. Datalogix is probably the largest acquisition that Oracle has made in the DaaS space.

  • When DaaS meets SaaS $s are made – From the press release it is also clear, that Oracle really understands that a winning combination of DaaS and SaaS is what secures long lasting revenue screens, creates software users like and need (aka becomes ‘sticky’) and excludes the competition very effectively. 

  • Oracle needs a BigData platform – The acquisitions of Micros and now Datalogix will stretch Oracle’s database capability in the BigData realm, but the vendor has the expertise and capital to address this. Let’s keep in mind we are talking about e.g. moving Datalogix data across many data center and possible even on premise installations (let’s not forget Oracle give the on premise install option for Fusion Applications).



A good move by Oracle, it now has added probably enough growth from acquisitions to make 2015 YoY comparisons favorable, even if it experience little organic growth. With financial analysts seldom making the ceteris paribus argument of how large both companies would be without an acquisition event, this is good news for Oracle. 

But the really exciting part will be to combine a network of POS data (from Micros), combined with Datalogix and Oracle Marketing applications. We know the main thrust for Digital Transformation is being executed in the marketing department, Oracle now has more offerings to open the heart (and wallets) for CMOs in 2015.


Also worth a look for the full picture
  • Event Report - Oracle Openworld - Oracle's vision and remaining work become clear - they are both big - read here
  • Constellation Research Video Takeaways of Oracle Openworld 2014 - watch here
  • Is it all coming together for Oracle in 2014? Read here
  • From the fences - Oracle AR Meeting takeaways - read here (this was the last analyst meeting in spring 2013)
  • Takeaways from Oracle CloudWorld LA - read here (this was one of the first cloud world events overall, in January 2013)
And if you want to read more of my findings on Oracle technology - I suggest:
  • Progress Report - Good cloud progress at Oracle and a two step program - read here.
  • Oracle integrates products to create its Foundation for Cloud Applications - read here.
  • Java grows up to the enterprise - read here.
  • 1st take - Oracle in memory option for its database - very organic - read here.
  • Oracle 12c makes the database elastic - read here.
  • How the cloud can make the unlikeliest bedfellows - read here.
  • Act I - Oracle and Microsoft partner for the cloud - read here.
  • Act II - The cloud changes everything - Oracle and - read here.
  • Act III - The cloud changes everything - Oracle and Netsuite with a touch of Deloitte - read here
Lastly - paying tribute to my Future of Work / HCM / SaaS research area:
  • Progress Report - Oracle HCM gathers momentum - now it needs to build on that - read here
  • Oracle pushes modern HR - there is more than technology - read here. (Takeaways from the recent HCMWorld conference).
  • Why Applications Unlimited is good a good strategy for Oracle customers and Oracle - read here.
Find more coverage on the Constellation Research website here.