Initial News Analysis: Oracle Buys Primavera
Oracle’s announced the acquisition of Primavera, a leading project based solution (PBS) provider. This latest acquisition signals continued consolidation in the project based solution market which is a 6.6B market based on recent market forecasts. Oracle’s move addresses a significant need as project professionals remain challenged by existing business solutions that force-fit production and manufacturing applications to meet the needs of knowledge-based information workers. The new global business unit is in line with Oracle’s industry strategy and will be headed by Primavera’s current CEO, Joel Koppelman.
As enterprises continue the shift to a service-based and project-based world, project-based solutions (PBS) are the only applications category that enterprises can rely on to deliver process automation, process improvement, and innovation for this new world of work. PBS transcends traditional functional boundaries of project management, ERP, CRM, and supply chain management (SCM) to include requests from areas like project accounting, change management, time/expense, and analytics that surround the work being accomplished.
The bottom line.
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| Tags: , acquisition, mergers, Oracle, ppm, primavera, projectd based solutions, | Categories: Uncategorized
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[...] recent market consolidation like Oracle’s acquisition of Primavera, the combination of PPM and enterprise resource planning (ERP) still misses key ILM market needs [...]
BTW — was this 10/1 blind item of yours –
# Project Based Solutions - The word on the street is that there will be some more acquisitions in the project based solutions space. This market is going through consolidation and the acquisition of OpenAir by NetSuite was just the beginning.
– a reference to this deal?
Cheeky monkey.
Knew I could count on you to get out in front of this. (If only I had “known” it several hours ago, when I was wracking my brain.)
We (you and I) have never discussed your “project-based solutions” concept — but now we’re going to have to. =)
I’m hoping there’s a deeper CRM overlap, beyond just the sliver of PMOs called on to deploy external or build internal CRM systems — and a wider distribution, industry-wise, than just professional services and other billable-hour verticals.
Over at Gantthead, they’ve been running a monthlong series of project-management-oriented CRM material (nicely done, Gantt Guys!) — the link: http://snurl.com/ganttcrm [www_gantthead_com].
Hopefully we’ll have our own take up by the end of the day, either on our news site, http://snurl.com/dCRM, or as a blogpost of our own, at http://snurl.com/dCRMblog.
Oh, since you’re unlikely to include it yourself (the humility! the modesty!) here’s Ray’s quotable bit over at Barney Beal’s TechTarget page — the link, too: http://snurl.com/46k9e [searchoracle_techtarget_com]
Yet, according to Ray Wang, vice president and principal analyst at Cambridge, Mass.-based Forrester Research Inc., there’s a lot of opportunity for Oracle. While big construction, utilities and engineering companies will get value from a combined Primavera, Oracle sees an opportunity for expansion. “In this industry, PPM was the one category of project-based solutions that had done really well because of these large projects, but the software does a lot more,” Wang said. “Primavera is the granddaddy in this market. And it’s a bigger market than just PPM. That’s a piece that everybody forgets. This stuff can be used in asset management and professional services.”