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Oracle & NetSuite Join Clouds to Chase SMBs

NetSuite’s specialty is selling cloud-ified ERP to SMBs

Failing organic growth Oracle has tied up with Larry's "other" company, sometime competitor NetSuite, one of the first SaaS companies, predating even salesforce.com by a year thanks to Larry's nickel.

NetSuite's specialty is selling cloud-ified ERP to SMBs. By the end of the year, the widgetry will be integrated with Oracle's human capital management (HCM) software used to manage employees in a combination clearly aimed at Oracle's new nemesis Workday, started by the folks driven out of PeopleSoft when Oracle bought the place out from under them.

Deloitte Consulting LLP also has a piece of the action. It's going to start a practice to help customers deploy the widgetry.

With the move, Oracle, which usually goes after large companies with its own ERP wares on large companies, has to a certain extent taken out NetSuite as a competitor and gets new representation with the SMBs that are sometimes units of mighty concerns. For large organizations where Oracle HCM is already deployed, they imagine two-tier deployments of NetSuite in smaller subsidiaries easily connecting with the corporate HR system.

Oracle president Mark Hurd called it "rolling thunder as opposed to an event," suggesting that the two companies would increasingly integrate their cloud software.

They are also going to join sales teams to go into accounts together. "We'll have a team that sells Oracle HCM into the NetSuite customer base, and which will work with NetSuite on new opportunities," Hurd said. NetSuite sales reps will get a fee for referring HCM customers to Oracle.

NetSuite has about 16,000 customers.

Gartner estimates that global ERP spending will reach $34.3 billion in 2017 up from an estimated $26.03 billion this year. It also estimates that around $677.0 billion will be spent on cloud services between 2013 and 2016.

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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