Just before Christmas 2013, Oracle reported that they joined hands with B2C marketing software provider Responsys for more or less US$1.5 billion.
Although it’s not a done deal yet, it is Oracle’s goal for Responsys to expand their cloud contribution as users move from conventional software. This would expand Oracle’s customer experience cloud that may include commerce, sales, service, social and Oracle marketing cloud. The directors of Responsys accepted this deal and Oracle claims that the deal will be finalized in the first half of 2014. While this is not confirmed, it is said that Oracle’s reason for purchasing Responsys may have been to take them off the surface from competitors.
The statement of Oracle’s purchase of Responsys was made precisely 365 days after Oracle stated the US$871 million asset with Eloqua. Oracle also acquired content marketing software seller Compedium in October. Oracle wants to take on the likes of Salesforce and Adobe. It is said that Salesfoce.com has spent more or less US$2.5 billion for ExactTarget in 2013. Microsoft also laid out money in this section, hollowing out MarketingPilot in 2012.
The spotlight is on giving leading marketing officials a one-stop store for spinning both business-to-customer and business-to-business marketing operations. This product enables businesses to run marketing operations through numerous channels like email, websites and social media sites. These operations can be personalized for your customer’s specific needs. Not only does Responsys possess software that can assist a business to create thorough client descriptions but also to scrutinize the success rate of these marketing operations.
Ray Wang, principal analyst, founder and chairman at Constellation Research stated the following: “Given that Eloqua is primarily focused on business-to-business transactions, picking up Responsys and its business-to-customer tools is huge. Most vendors can only deliver one or the other. Consolidation in the marketing software segment speaks to a broader issue. The challenge now is that large software companies are having a tough time building out innovation and a customer base so they are now buying that innovation, customer base and culture. It’s like Big Pharma buying out Biotechs.”
It appears that counter offers from SAP, IBM and Microsoft may have been made with regard to Oracle joining forces with Responsys, but probably in this case, it’s a done deal.