Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Oracle pays £1.1billion for network equipment maker Acme Packet

Network management doesn't come cheap

Article comments

Oracle has agreed to pay $1.7 billion (£1.08 billion) for Acme Packet, a network equipment vendor specialising in session delivery.

Carriers and enterprises use Acme's products to manage the quality of voice, video, application or unified communications sessions across all-IP networks.

Oracle intends to integrate Acme's offering with its own communications product portfolio, alongside other core network products such as its network application platform and tools to manage service availability.

The move will enable it to help service providers monetise their IP networks, Oracle said. That's a matter of perpetual concern for network operators concerned that they will become nothing but a commodity "bit pipe" as application providers reap all the profits.

Oracle faces a saturated market for the product among major telcos, though: 89 of the world's top 100 communications are already Acme customers, it said.

Still, Oracle could use Acme's presence in those accounts to upsell customers on its broader array of offerings for communications providers.

An FAQ document about the deal released Monday includes a diagram showing how Acme's technology will fit within Oracle's "core network" product portfolio, in between sales, billing and supply chain applications on one side, and end-user applications and devices on the other.

Oracle also plans to bring on Acme Packet's staff following the transaction's close, according to the FAQ document. Acme employs "880 domain experts in IP networking," the FAQ adds.

One observer expressed a mixed view of Oracle's announcement.

"My best guess is that Oracle will leverage Acme to grow its carrier [operations support systems] business," Nemertes Research vice president and service director Irwin Lazar said via email. "Acme has played a leading role in helping carriers move to [IP multimedia subsystem] wireless service delivery, and Oracle sees this as something it can leverage to help carriers provision, bill for, and manage wireless and wireline applications and services."

However, "what I wonder about is the enterprise side of Acme's business," Lazar added. "I don't see a real good fit between [Acme's] enterprise session border controller piece and Oracle's other offerings. It wouldn't surprise me to see Oracle spin out the enterprise SBC business at some point."

Session delivery is the fifth of seven layers in the OSI (Open Systems Interconnection) networking model, dealing with the establishment, management and termination of dialogs between computers. It sits on top of the transport (layer 4), network, data link and physical layers. Above it come the presentation and application layers.

Acme's board of directors has already approved the acquisition, and Oracle expects to close the deal in the first half of the year if stockholders accept it.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *