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Java IoT: Article

Oracle Buys Tekelec

Terms were not disclosed

Oracle said Monday that it's buying Tekelec, which makes mobile broadband software that service providers use to manage and monetize multimedia applications and the increased mobile data traffic they're seeing.

Tekelec claims 300 SP clients in 100 countries.

Terms were not disclosed.

Seeking Alpha speculates that because Oracle has suddenly turned to the telecom sector - signaled by its recent deal to buy Acme Packet - that maybe its SaaS interests - distinguished by, say, Taleo and Rightnow - aren't going too well - given the lack of growth in its licensing. It thinks SaaS rivals are getting away with rustling Oracle's enterprise customer base.

Oracle and Sun have established beachheads in telecom so Oracle is falling back in a defensive position.

Seeking Alpha says "Instead of continuing his earlier path of buying SaaS product lines, Larry appears to be diverting his capital to acquiring in areas that will diversify his dependence on the enterprise space" while allowing him to keep his "current sales model of high end and highly paid sales people as it is one of the few areas that will still do very large, very service-intensive, very customized deals."

Long term the SaaS sector won't support a big direct salesforce and the blog thinks Oracle hasn't figured out how to deal with it.

Anyway, Oracle means to combine Tekelec with Oracle Communications and Acme Packet, when that deal closes to offer a complete communications offering.

It says Tekelec's network signaling (Diameter and SS7), policy control and subscriber data management solutions complement Oracle Communications' mission-critical operational support systems, service delivery platforms, and business support systems.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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