Oracle Buys Endeca, Beefs Up Data Management Strategy

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Businesses are searching for efficient and analytical solutions for sorting their unstructured information, reflected in the recent buying activity from Oracle and HP. (Image: Stock.xchng)
Businesses are searching for efficient and analytical solutions for sorting their unstructured information, reflected in the recent buying activity from Oracle and HP. (Image: Stock.xchng)

BUSINESS

  • Deal expected to be finalized by end 2011
  • Buyout a response to HP acquisition of Autonomy
  • Oracle Social Network unveiled

Oracle intends to buy Endeca Technologies in an effort to boost its unstructured data management services. The hardware and software systems specialist agreed to acquire Endeca, a privately held data analyzing firm that helps businesses organize unstructured information from text-based data sources such as emails, by the end of the year. No financial details were given.

Endeca’s MDEX Engine technology, along with its Latitude analytics program and InFront customer experience management application, will allow Oracle to deliver a specifically tailored and relevant service to clients in need of structuring various information sources.

Oracle has over 600 customers, such as Ford, Toyota and Walmart, which already rely on Endeca’s data analysis solutions, said Endeca CEO Steve Papa.

“Endeca is recognized for its unique approach in hybrid search-analytical technology on diverse and changing information,” said Papa in a statement. “We bring successful deployments with large enterprises in key industries… Many of these customers are also Oracle customers.”

BI Rivals Leapfrogged

Boris Evelson, an analyst at market research firm Forrester, said this acquisition could propel Oracle to the forefront of the business intelligence (BI) segment ahead of other leading players like IBM and SAP.

“This is a very smart move by Oracle,” Evelson said in a blog post on Forrester.com. “With this acquisition, Oracle has leapfrogged all other leading BI vendors in its capability to integrate unharmonized data sources and perform search-based BI.”

Industry experts believe this latest purchase may be in response to Hewlett-Packard’s $11.7 billion buyout of enterprise software company Autonomy, which had previously been engaged in talks with Oracle. Oracle CEO Larry Ellison turned down the UK firm’s “absurdly high” offer in April, citing its market value at the time to be $6 billion.

With rapidly increasing data flow from sources like social networks, website traffic and call centers, businesses are searching for efficient and analytical solutions for sorting their unstructured information, reflected in the recent buying activity from Oracle and HP.

Earlier in the month Oracle announced it was also launching its business-oriented social network platform, Oracle Social Network, which will become the user interface for the company’s cloud computing solutions.

Key Statistics – Global Software Market (source: Ovum Research)

  • After a slow 2010, the worldwide software market is poised for over 8% growth, which will see it top $267 billion by end 2011.
  • The global market will grow at an annual rate of 7.7% over the next four years, reaching $358 billion in revenue through 2015.
  • In 2011, Microsoft’s domination of the sector will continue with around 20% of the global software market and revenue of $62 billion.
  • Oracle holds the second-biggest market share behind Microsoft, followed by IBM and SAP.
  • Between 2010 and 2015, the infrastructure software market will grow at a rate of more than 8%, with applications software growing at nearly 7% annually.

By James Mulholland for
James Mulholland is a Paris-based internet and broadcast journalist specializing in sports, current affairs and technology news, while also freelancing as a photographer.

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