Oracle Acquires Corente


Who was it that criticized Oracle for being late with Cloud Computung service offerings for their clients? This statement is no longer true and better yet sometimes IT strategies just need to evolve over time - naturally in response to services your customers are requesting, not what you may think they want.

 

Oracle Corporation announced that it has agreed to buy Corente, a leading provider of software-defined networking (SDN) technology for wide area networks (WANs), for an undisclosed sum.

 

As Oracle explained in a statement on the purchase, Corente's software "accelerates deployment of cloud-based applications and services by allowing customers to provision and manage global private networks connecting to any site, in a secure, centralized and simple manner."

 

Corente does this by managing the distribution of software applications over networks. Oracle reveals that it is buying the company in order to marry its own technology portfolio with Corente's expertise in delivering these products to customers via the cloud.

 

We recently wrote how this was the same strategy that IBM was undertaking. IBM has no interest in selling low-margin cloud commodities and is taking a different route. Instead of competing against Amazon and Microsoft by selling commodity cloud computing and storage, IBM is focusing instead on delivering software via the cloud. IBM's recent acquisition of SoftLayer, along with several other recent cloud-related acquisitions, has allowed the company to quickly build up their cloud computing business.

 

In a letter to the company's customers and partners, Oracle Chief Corporate Architect Edward Screven said Corente deployments have " "dramatically decreased time to deployment of cloud-based applications and services, and increased security and manageability across the enterprise ecosystem."


This is at least the third major purchase of a cloud-based platform for Oracle, representing a gradual shift in strategy over the last few years. The company has historically generated the bulk of its revenue from selling hardware and installed software, and has hesitated in the past to back a competing business model.


“Oracle customers need networking solutions that span their data centers and global networks,” Edward Screven, Oracle’s chief corporate architect, said in a statement. “By combining Oracle’s technology portfolio with Corente’s industry-leading platform extending software-defined networking to global networks, enterprises will be able to easily and securely deliver applications and cloud services to their globally distributed locations.”

 

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Bill has been a member of the technology and publishing industries for more than 25 years and brings extensive expertise to the roles of CEO, CIO, and Executive Editor. Most recently, Bill was COO and Co-Founder of CIOZone.com and the parent company PSN Inc. Previously, Bill held the position of CTO of both Wiseads New Media and About.com.

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