Is RIM the next acquisition for Oracle?
Stephen Janisse at The Software Advice Blog has done some interesting analysis speculating what company Oracle will acquire next. He also polled readers on the topic.
I don’t claim to know the answer. But I do think RIM is an interesting target that Oracle should consider. (Note: I own Oracle shares and recently divested positions in RIM). The unscientific poll points to a more traditional acquisition.
Oracle should consider a mobile acquisition and RIM in particular because of its combination of depressed share price and large global install base.
SAP recently jumped into the mobile market with their Sybase acquisition. The Sybase acquisition is also all but certain to end SAP use of Oracle databases in their customer deployments.
Oracle now owns the Sun Microsystems hardware business and the rights to Java. As many of you know Oracle recently sued Google over Java use in Android devices. RIM is flailing and it appears the Blackberry Torch will not be the blockbuster product to save the company.
Regardless of what Oracle does, RIM is in trouble.
RIM’s strength is in their enterprise install base and their ability to provide secure enterprise mobility solutions. Oracle needs a mobility component. RIM provides mobility and an install base of worldwide licenses that will need renewing. Furthermore Oracle with RIM would be competitive in the emerging iPad-clone tablet market.
Tablets provide a variety of enterprise opportunities for vertical markets. Oracle with Java, Sun & RIM are experts in this space which Apple has shown consistent weakness in supporting (think of the early iPhone issues in connecting to Microsoft Exchange servers).
Regardless of what Oracle does, RIM is in trouble. RIM needs to make major changes and is a takeover target. This affects all of us trying to make decisions about the mobile world because the huge Blackberry install base with innovative new features (and a new OS in particular) could rapidly affect mobile commerce.
Meanwhile RIM appears lost and I’ve sold my shares for a significant loss at a price unimaginable just a few years ago.