News

Oracle To Buy RightNow for $1.5 Billion

Oracle today said it has agreed to acquire RightNow Technologies Inc. for $1.5 billion. The deal comes less than a week after Oracle agreed to acquire enterprise search vendor Endeca.

RightNow is a provider of cloud-based customer service applications. Used by customer service agents, RightNow's Customer Service Cloud lies within the shadow of Salesforce.com's Service Cloud, though RightNow claims it has 2,000 customers. RightNow provides customer service via the Web, social networks and call centers.

At its OpenWorld conference in San Francisco earlier this month, Oracle signaled it plans to become more aggressive in building a portfolio of cloud-based platforms and services, where the company launched Oracle Public Cloud.

Oracle has had a long and heated rivalry with Salesfore.com, whose software as a service customer relationship management portfolio competes with Oracle's own suite of applications and CRM software. By acquiring RightNow, Oracle picks up a key challenger to Salesforce.com.

"Oracle is moving aggressively to offer customers a full range of cloud solutions including sales force automation, human resources, talent management, social networking, databases and Java as part of the Oracle Public Cloud," said Oracle executive VP Thomas Kurian, in a statement. "RightNow's leading customer service cloud is a very important addition to Oracle's Public Cloud."

Salesforce.com CEO Marc Benioff and Oracle CEO Larry Ellison exchanged barbs with each other earlier this month, both accusing the other of locking customers into their respective offerings.

Nevertheless, Salesforce.com is on a run-rate to gross $2.2 billion in revenues this year, while RightNow, which has forecast revenues for this year to reach $226 million.  

The deal, approved by RightNow's board, is set to close by early next year, pending shareholder and regulatory approval.

About the Author

Jeffrey Schwartz is editor of Redmond magazine and also covers cloud computing for Virtualization Review's Cloud Report. In addition, he writes the Channeling the Cloud column for Redmond Channel Partner. Follow him on Twitter @JeffreySchwartz.

Featured

  • Microsoft Adding Google G Suite Migration in Exchange Admin Center

    Microsoft's Exchange Admin Center will be getting the ability to move Google G Suite calendar, contacts and e-mail data over to the Office 365 service "in the coming weeks."

  • Qualcomm Back in Datacenter Fray with AI Chip

    The chip maker joins a crowded field of vendors that are designing silicon for processing AI inference workloads in the datacenter.

  • Microsoft To Ship Surface Hub 2S Conference Device in June

    Microsoft on Wednesday announced a June U.S. ship date for one of its Surface Hub 2S conferencing room products, plus a couple of other product milestones.

  • Kaspersky Lab Nabs Another Windows Zero-Day

    Kaspersky Lab this week described more about a zero-day Windows vulnerability (CVE-2019-0859) that its researchers recently discovered, and how PowerShell was used by the exploit.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.