As reported by GigaOM’s own Derrick Harris, Oracle is purchasing hybrid cloud computing technology provider, Nimbula. But why?
As Harris puts it, “It’s difficult to say at this point what inspired the deal, but my early assumption is that it’s a win-win. Oracle currently has a cloud computing strategy that’s questionable at best, and its private-cloud strategy seems hinged on selling big, expensive, over-engineered systems with some legacy Sun Microsystems and Oracle software cobbled together to make them, cloudy.”
While it’s difficult to determine the motivations behind deals such as these, this one is easy to read. Oracle had been lackluster with their cloud strategy for some time, and will have to go on a buying spree to prove to the world that they have what it takes to offer great cloud technology….money to purchase companies that already have the technology.
Were I in the executive suite at Oracle, I would be doing exactly the same thing: Purchase upstarts that are just getting their technology to market, and have a promising future. For what Oracles does, Nimbula would be on high on the list, and this will add to Oracle’s cloud-credibility as well as put something interesting in their cart to sell.
The difficulty is in merging the two very different companies. Young companies, such as Nimbula, have a tendency to not work and play well inside of large organizations. I would take special care to see that this merger works for all involved.