Some analysts believe that Oracle's acquisition of Acme Packet could prove to be great for business and shows a new trend in global communications.
“While my first reaction was one of surprise, this could be a very good deal for Oracle in the long run. Acme Packet is the clear leader for stand-alone session border networking – providing the gear that allows enterprise and service provider IP networks to securely pass traffic between themselves and each other – in particular SIP traffic," commented Brian Partridge, Yankee Group vice president of research in response to a Boston Globe article detailing the purchase. "This is a strategic deal for Oracle, which is paying a fairly handsome premium but in turn getting a market-leading suite of solutions and a world class install base of customers."
Oracle announced on Monday an intent to buy Acme Packet for $1.7 billion. The deal, signed off on by both companies, is expected to close sometime in the first half of this year, assuming regulatory approvals and other closing conditions are met.
The tech giant says its purchase of Acme Packet will accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network.
This move proves that Oracle is getting serious about IP networking, Partridge added, saying it has significant implications in the context of mobile-network transformation.
Dana Cooperson, principal analyst for Ovum, says the purchase shows that IT and telecom are rapidly blending, software is increasingly driving network capabilities and that communications needs are anytime, anywhere.
“Oracle Communications has a value proposition that encompasses telcos, enterprises and other ICT (information and communications technology) infrastructure vendors," Cooperson noted. "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."