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Oracle Buys Tekelec, Accelerates Mobile Service Provider Push
Oracle is buying Tekelec and Acme Packet to work more closely with mobile service providers and telecom companies that want to monetize services.
The VAR Guy
March 25, 2013
4 Min Read
Oracle (NASDAQ: ORCL) is buying Tekelec, which offers mobile broadband solutions to roughly 300 service providers. The deal, coupled with Oracle's pending Acme Packet acquisition, shows how the database giant is evolving to focus on signaling, policy control, and session delivery network solutions. The ultimate goal: Help service providers monetize personalized communication services, according to Oracle Senior VP Bhaskar Gorti. Here's the strategy.
The Tekelec and Acme Packet deals come at a critical time for Oracle. Although the company remains profitable, Oracle's most recent quarterly results (Q3 2013) were weaker than Wall Street expected. Total Q3 revenues fell 1% to $9.0 billion; and new software licenses and cloud software subscriptions fell $2.3 billion.
Oracle remains best-known for its database and applications portfolios. But the company is working overtime to promote its engineered systems approach, while also pushing hard into the cloud, social enterprise and mobile markets.
What Tekelec Does
On the mobile and communications front, Tekelec provides network signaling, policy control, and subscriber data management solutions for communications networks. In a prepared statement, Oracle said:
"By combining Tekelec with leading capabilities from Oracle Communications and Acme Packet*, Oracle expects to provide the most complete communications offering that will enable service providers to engage with customers, improve operations, control network resources and deploy innovative communications services."
(The Acme Packet deal is still pending approval, hence the asterisk.)
Embracing the Installed Base
Oracle also wrote a letter to partners and customers, explaining the Tekelec buyout. It stated:
"Dear Customers and Partners,
On March 25, 2013, Oracle announced that it has agreed to acquire Tekelec, a leading provider of network signaling, policy control, and subscriber data management solutions for communications networks. The transaction is subject to customary closing conditions and approvals. Until the transaction closes, Oracle and Tekelec will continue to operate independently, and it is business as usual. The transaction is expected to close in the first half of 2013.
The proliferation of smart devices, mobile applications, and connected services has led to an exponential increase in network signaling and data traffic. To address these increased network workloads, and monetize cloud, over-the-top, and personalized services, service providers require intelligent network control technologies.
Tekelec's technology enables service providers to deliver, control and monetize innovative and personalized communications services. The company's solutions are deployed by more than 300 service providers in over 100 countries.
Oracle plans to make Tekelec's network signaling, policy control and subscriber data management solutions a part of its Oracle Communications portfolio to help service providers efficiently allocate network resources and monetize personalized communications services. Oracle anticipates that the combination of Tekelec, Acme Packet* and Oracle Communications will create the industry's most complete portfolio spanning Customer Relationship Management, Business and Operational Support Systems, Service Delivery Platforms, Network and Service Control, and end-user applications. This will enable service providers to rapidly create and deploy innovative communications services, engage customers, improve operations, and control network resources.
The Tekelec management team and employees are expected to join the Oracle Communications Global Business Unit and continue their focus on delivering excellence to service providers after the transaction closes.
For more information please visit oracle.com/tekelec.
Thank you for your continued support.
Regards,
Bhaskar Gorti
Senior Vice President and General Manager
Oracle Communications* Pending Acme Packet transaction close."
The VAR Guy will offer an update once the Tekelec and Acme Packet deals are finalized.
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