This blog analyzes the recent acquisition of BigMachines by Oracle Corporation. The addition of BigMachines' CPQ Cloud to Oracle Cloud will enhance Oracle's configure, price and quote capabilities in its Cloud offering. The announcement should be of interest to manufacturers that are existing Oracle and BigMachines customers, as well as those who are investing in cloud-based CRM and sales tools to optimize the sales process.
On October 23, Oracle announced its intent to acquire BigMachines, a Chicago-based company that provides cloud-based configure, price and quote via the cloud. The transaction is expected to close in 2013, and both companies will continue to operate independently until the transaction closes.
This announcement brings into greater focus Oracle's strategic direction concerning Oracle Cloud. While Oracle has a standard CRM offering on-premise, the addition of BigMachines' CPQ Cloud extends sales automation and bolsters Oracle's competitive position in the cloud enterprise application market. CPQ Cloud is a sales accelerator for converting sales opportunities into revenue by automating the sales order process with guided selling, dynamic pricing and workflow approval processes. Currently, more than 275 companies across industries utilize CPQ Cloud.
IDC Manufacturing Insights has seen a marked increase in manufacturing companies that are interested in optimizing their B2B commerce efforts, and sales configuration and optimization are two important aspects of this, especially given the complex nature of many of the products that manufacturers sell. In recent history, enterprise software vendors including IBM (with its Sterling Commerce acquisition in 2010) and more recently Infor (with the acquisition of TDCI in May 2013) have added product configure, price and quote capabilities to their existing enterprise applications to address this growing need in the market for improving the buying experience and streamlining the ordering process for manufacturers.
IDC Manufacturing Insights believes Oracle is on the right path to build a formidable Cloud offering for enterprise applications which includes marketing, sales, social, commerce, service and with the addition of BigMachines will add smarter selling. While the company has been perceived as lagging behind other competitors with its move to the Cloud, this acquisition accelerates the company's efforts in the sales automation area, and provides a cloud-based alternative to Oracle's on-premise CRM offerings. Existing customers of Oracle and Salesforce can be encouraged that 'co-opetition' will continue to rule the day, and support for third-party integrations will persist from all sides.
For further analysis, subscribers to IDC Manufacturing Insights can read more about this topic in the coming week here.