Oracle Corp. (ORCL) recently signed an agreement to acquire Front Porch Digital. However, nothing related to financial details of the deal were revealed.
Headquartered in Colorado, Front Porch Digital provides content storage solutions to some of the largest media companies worldwide. The company’s solutions make it easier for its customers to manage, archive, and monetize their large-scale media files. Front Porch Digital operates both on customer’s premises as well as in the cloud.
Privately-owned Front Porch Digital has near about 550 customers worldwide including the likes of A & E Television, BBC, Discovery Communications, U.S. Library of Congress and NASCAR. The company manages over 750 petabytes of digital content.
We believe that this acquisition will enable Oracle to help organizations more effectively and efficiently manage the growing complexities associated with the migration, integration, storage, and delivery of rich media content. Moreover, it will provide Oracle with a useful cloud service business and a well-defined market niche.
Additionally, this deal will enable Oracle to pitch its database, content management tools and analytics packages to Front Porch customers.
Of late, Oracle has been on an acquisition spree in order to diversify its offerings. The company has spent about $50 billion to acquire 100 companies during the last 10 years.
In 2014 itself, the company had acquired six companies like Corente, BlueKai, GreenBytes, LiveLOOK, MICROS Systems and TOA Technologies. We believe that Oracle, being a late entrant to the cloud computing field, will continue to pursue strategic acquisitions to combat competition from the likes of International Business Machines (IBM), SAP AG (SAP) and Microsoft Corp. (MSFT). This, in turn will improve its market share and top-line growth going forward.
Moreover, the speedy adoption of engineered systems and cloud suites will drive top-line growth, going ahead. Moreover, Oracle's strategy of providing end-to-end solutions will further attract new customers in the long run.
Currently, Oracle has a Zacks Rank #3 (Hold).
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