Oracle Buys Acme Packet

Oracle today announced plans to acquire Acme Packet, a global provider of session border control technology that includes voice, data, and unified communications services and applications across IP networks, for $1.7 billion. More than 1,900 service providers and enterprises, including 89 of the world's top 100 communications companies, currently deploy Acme Packet's solutions.

The combination of Oracle and Acme Packet is expected to accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network.

"The communications industry is undergoing a dramatic shift as users become more connected and dependent on mobile applications and devices. Service providers and enterprises need a comprehensive communications solution that will enable them to more effectively engage with their customers," said Bhaskar Gorti, senior vice president and general manager of Oracle Communications, in a statement. "This combination will enable secure and reliable delivery of real-time interactive communications through the most comprehensive, best-in-class communications portfolio in the industry."

Oracle president Mark Hurd called the acquisition "another important piece in Oracle's overall strategy to deliver integrated best-in-class products that address critical customer requirements in key industries."

"The addition of Acme Packet to Oracle's leading communications portfolio will enable service providers and enterprises to deliver innovative solutions that will change the way we interact, conduct commerce, deliver healthcare, secure our homes, and much more," Hurd said in a statement.

Andy Ory, CEO of Acme Packet, agrees. "Together with Oracle, we expect to provide customers with purpose-built, innovative solutions to accelerate the deployment of all-IP networks and help deliver a consistent experience across all services, devices and networks," he sasid in a statement.

Dana Cooperson, principal analyst at Ovum, believes the acquisition should strengthen Oracle's hand both with enterprises and carriers by giving it a more central role in controlling and improving how devices and subscribers interact and communicate.

"Oracle's move to acquire Acme Packets illustrates several very important on-going trends in global communications," Cooperson maintained in an email.

Among them, Cooperson cites the blending of IT and telecommunications, software increasingly driving network capabilities, and the need for people to be connected everywhere and at all times.

"Telecom and IT are coming together in ways that are shifting the vendor competitive framework significantly. IT-focused companies like Oracle see a real opportunity to strengthen their position in both markets through extending their product lines and are acting aggressively," Cooperson continues. "Oracle Communications has a value proposition that encompasses telcos, enterprises, and other ICT (information and communications technology) infrastructure vendors."

---