CRM Is Big Business
According to analyst firm Gartner, the SaaS segment of theCRM industry alone, which represents only a third of the entire market, willexceed US$ 4 billion in revenue by 2014. That amount of cash is certain to resultin a lot of vendors trying to get their share.
Oracle is facing stiff competition for market share in theCRM space from Microsoft (news, site), SAP and SalesForce.com. For example, Microsoftreleased a cloud-based version of its Dynamics CRM this year that integrateswith its popular Office suite. Given the competition, vendors are constantlyadding features and introducing features such as social media integration inan attempt to differentiate themselves.
Oracle’s newest acquisition will give the software giantlots of new features for its CRM without writing a single line of code.
Why Are Oracle, InQuira Merging?
InQuira provides knowledge management and customerself-service products that improve the efficiency of customer interactions inareas from customer support to sales by allowing information to be located morequickly. InQuira has patented its natural language process and semanticsearch technology, which is the foundation of many of the products. Accordingto Anthony Lye, SVP of Oracle CRM, Oracle will use InQuira’s technology to
provide an integrated suite ofproven solutions that deliver a comprehensive and highly personalizedexperience for every customer, across all channels.”
Oracle is a huge software company and its Fusion suite ismassive. Many may wonder why Oracle elected to acquire InQuira’s knowledgemanagement technology instead of building its own. Knowledge management is a specialized area and InQuira is one of the market leaders. AcquiringInQuira means Oracle acquires the InQuira’s market leadership -- if Oracle can do a good job integratingthe technology into its existing product offerings.
InQuira has partnerships with other large software companiessuch as SAP and IBM. According to Oracle, these partnerships won’t be affected until the merger is complete. Afterwards, Oracle indicated partners willbenefit from increased investment in the product line.
Today’s announcement is not the first relationship Oraclehas had with InQuira. The companies share several major customers and InQuira’stechnology has been integrated with Oracle’s CRM On Demand platform for alittle over two years.
We will definitely be watching to see how successful Oracleis at gaining an edge on its competition due to its latest purchase.