Oracle deal for Maxymiser comes as Cisco report finds cloud-based revenue expectations
Oracle bolstered its cloud-based software platform through the acquisition of U.K.-based Maxymiser in a move that could take advantage of the increased revenue forecast to be generated through the use of cloud technologies.
Maxymiser’s solution is designed to support the testing, targeting and personalization of marketing content that consumers view on a Web page or mobile application. The company provides services for Allianz, HSBC, Lufthansa, Tommy Hilfiger and Wyndham, among others.
“Our mission is to empower enterprises to use data science to systematically test, discover and predict what customers want and deliver uniquely tailored experiences,” said Tim Brown, CEO at Maxymiser.
Oracle said it plans to add Maxymiser’s technology to its Marketing Cloud service to improve performance across digital channels. Financial terms of the deal were not released.
Technology Business Research estimates Maxymiser’s global workforce at 425 employees, with between $75 million and $90 million in revenue expected this year. The research firm said the deal provides Oracle with cross-selling opportunities and potential value-add for customers, although it also could provoke a similar merger and acquisition reaction from rival Adobe.
“Oracle’s acquisition of Maxymiser makes Oracle Marketing Cloud an even more formidable competitor to Adobe Marketing Cloud,” TBR explained. “One Oracle executive stated the move goes ‘right at the heart of Adobe.’ TBR anticipates Adobe may counter by pursuing a U.S.-based peer, such as Optimizely, or a vendor with a strong European presence that is ramping up U.S. efforts, such as Ve Interactive.”
Oracle has also been busy updating its network functions virtualization offerings, including an NFV operating support systems update last month and the launch of four new products in June targeting communication service providers.
Enterprises expect cloud-based revenue gains
The deal was followed by a new report commissioned by Cisco Systems and conducted by IDC that claims 53% of companies expect cloud platforms to drive increased revenue over the next two years. Cisco noted those expectations could be a challenge for some to meet as just 1% of organizations are said to have optimized cloud strategies in place and 32% have no cloud strategy at all.
The report, “Don’t Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption,” is said to be based on primary market research conducted with executives responsible for IT decisions in 3,400 organizations across 17 countries who are successfully implementing private, public and hybrid clouds in their IT environments.
The study quantified the economic benefits of “mature cloud organizations,” noting they gained an average of $1.6 million in additional revenue per application deployed on a private or public cloud platform. Those organizations also achieved $1.2 million in cost reduction per cloud-based application.
On a per-country basis, mature cloud adoption was most prevalent in the U.S., with 34% of organizations judged as having adopted a mature cloud strategy. The Latin America region was No. 2 with 29% adoption, followed by the U.K. at 27%, France at 22% and Germany at 21%.
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