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You know how these things start. Someone hears something from someone who heard it from someone else.

Suddenly, you have a major story. Maybe.

The current something that is doing the rounds since late last night is that Oracle is in discussions with Micros Systems with a view to taking over the Point-of-Sale (POS) vendor for… wait for it … $5 billion.

If this comes to pass, it will be one of the biggest, if not the biggest, acquisition in terms of price this year. Again, its only rumors so far and there’s a long way to go before it’s a done deal.

Even if we don’t like to repeat rumors here, in this case it’s worth mentioning especially as it seems that Oracle CEO Larry Ellison himself is directly involved, according to unnamed sources that are being cited on the financial news wires.

Why Oracle and Micros Fit

Micros Systems makes point-of-sale (POS) hardware and software for restaurants and hotels. But the real interest here is data. R "Ray" Wang, principal analyst and founder of Constellation Research told CMSWire:

The battle for POS is not about the transactions but the POS data when told of the potential deal. The data in these systems are key to building digital businesses especially in hospitality. Micros will add to the Retek enterprise, the customer cloud and other areas key to delivering the end to end retail experience."

For Tim Jennings, Chief Research Officer at OVUM IT, the move is a logical one and fits in with Oracle’s current applications strategy.

Much of Oracle’s applications growth strategy has centered on vertical applications, so the addition of an additional (and complementary vertical) is a logical move."

However the recent priority has been for Oracle to acquire (often smaller) companies with pure play cloud-based solutions. Micros Systems doesn’t fall so neatly into that category it does dovetail well though with a growing sector, has a large client base into which Oracle can sell a range of solutions, and ticks the boxes for trends including customer experience, mobility and data-driven business."

However, it has to be kept in mind that at the end of the day, Micros is about POS for the hospitality and restaurant verticals and for Forrester's Peter Sheldon, vice president and principal analyst, serving e-Business and channel strategy professionals, this deal, if it happens,  is about hospitality software and nothing else.