Tuesday, November 16, 2010

Analysts Approve ATG Deal

Industry analysts have approved Oracle’s acquisition of ATG for $1bn – whether referring to the deal as a solid or a natural fit – it appears to be a thumbs up from those in the know.

ATG, an e-commerce firm, works well for Oracle, the enterprise software giant, according to Leslie Hand, research director for IDC Retail Insights. Eventually, he sees the creation of a converged platform, where e-commerce, retail and commercial tools will integrate.

"It was kind of an expected move that Oracle would buy some e-commerce capability," he said. "ATG has a great retail client base, a lot of big banner names as well as smaller customers."

Rob Enderie, principal analyst for the Enderie Group, was also impressed with the deal. He believes Safra Katz, the co-president, along with the other executives have shown great direction. Only two doubts arose - was the price tag too high, and, would Oracle’s reputation for locking customers into its own technologies, prove a problem.

“Oracle has a significant amount of core confidence," Enderie points out, albeit in relation to the ATG deal, “Oracle rarely overspends for anything, and they do good due diligence."

Oracle’s confidence may be vital to any doubts users may have – a company sure of its direction and at the forefront of ever changing technology. Its path is a sure one.

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