Oracle snaps up Tekelec in an enhanced telecoms play

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Larry Ellison’s company may be best known for its cloud portfolio, but Oracle has recently been looking to make a serious push towards telecoms, enhanced by the acquisition of Tekelec announced yesterday.

Tekelec, formed in 1971, is used by over 300 service providers worldwide and deals in network signalling, policy control and subscriber data management, giving providers the opportunity to monetise cloud, OTT and personalised services with the huge increase in data traffic.

This appears to fit right into the Silicon Valley giant’s hands with CEO Larry Ellison telling The Register that he envisages Oracle as the one-stop tech shop for the telecoms industry.

Oracle will therefore use this acquisition to integrate further with service providers, moving into its service and network control portfolio.

Or, as Bhaskar Gorti, Oracle senior vice president and general manager put it in a prepared statement: “The combination of Oracle and Tekelec will provide service providers with the most complete solution to manage their businesses across customer engagement, business and network operations, service delivery and end user applications.”

Of course, Tekelec isn’t the only telecoms provider Oracle has snaffled up; pending approval, networking hardware company Acme Packet will also slide into Oracle’s portfolio for a cool $1.7bn.

Financial terms of the Tekelec deal were not disclosed, however the best yardstick available is the $780m a consortium of investors paid for the comms company back in January 2012.

“This acquisition further extends Oracle’s move into the heart of telecom networks,” noted Dana Cooperson, Ovum principal analyst.

“Tekelec will extend Oracle Communication’s network control capabilities, which it also bolstered with its February announcement to acquire Acme Packet.

“Oracle has in the past partnered to provide these capabilities, but by bringing them in-house it will have more opportunity to shape the roadmap and combine the capabilities in a more tightly-coupled solution,” Cooperson concluded.

“Together with Oracle, we expect to accelerate the pace of service innovation by helping service providers transform the way they manage and monetise the explosive growth in signalling and data traffic on their networks,” said Tekelec CEO Ron de Lange.

Both companies seem satisfied, but does Oracle’s gobbling up of telcos and network providers please or worry you?

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