After dismissing cloud computing in the early days, Oracle is now attempting to rapidly improve its cloud offerings through acquisitions. Last month, it acquired NetSuite, a company co-founded by Oracle co-founder Larry Ellison—who has retained a significant investment. Now, Oracle is acquiring Paterra, a cloud security startup that provides a Cloud Access Security Broker (CASB) called LORIC. Paterra was co-founded by two former Oracle executives, Rohit Gupta and Ganesh Kirti.
Meanwhile, in the past quarter, Oracle’s cloud division provided less about 11 percent of revenue ($969 million of $8.6 billion). Breaking into the cloud market is a key issue for Oracle. On Sunday, Ellison said “Amazon’s lead is over,” in his keynote address at Oracle’s annual show. This is unlikely, but it is clear that the company has set its sights on bolstering its cloud profile.
While Oracle certainly has marketplace clout, it has not managed to move the needle on cloud services very much in a decade. Acquiring aligned businesses could help, but this is strategy does not always yield much in the way of innovation.