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 Dynamics 365: Why It May Not Be What You Think

    For starters, the cloud-based CRM/ERP software has some surprising integrations with PowerApps, Microsoft's low-code developer environment.

  • Microsoft 365 Insider Test Program Emerges for Organizations

    Microsoft has started a new Microsoft 365 Insider Program for organizations to test its software, but the program's name and scope could be changing.

  • IT Pros: Don't Forget To Protect Your Personal Security

    Don't be the IT pro who spends way too many hours each day keeping their users secure only to neglect their own home networks. Brien describes the two steps he took to avoid this trap.

  • Microsoft Edge Browser Shifting to Open Source Chromium Platform

    Microsoft plans to align its Microsoft Edge browser production efforts with the open source Chromium Web platform for the desktop version of the browser, the company announced on Thursday.

comments powered by Disqus
Most   Popular

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.