Wednesday, October 8, 2008

Initial News Analysis: Oracle Buys Primavera

Oracle’s announced the acquisition of Primavera, a leading project based solution (PBS) provider. This latest acquisition signals continued consolidation in the project based solution market which is a 6.6B market based on recent market forecasts. Oracle’s move addresses a significant need as project professionals remain challenged by existing business solutions that force-fit production and manufacturing applications to meet the needs of knowledge-based information workers. The new global business unit is in line with Oracle’s industry strategy and will be headed by Primavera’s current CEO, Joel Koppelman.

As enterprises continue the shift to a service-based and project-based world, project-based solutions (PBS) are the only applications category that enterprises can rely on to deliver process automation, process improvement, and innovation for this new world of work. PBS transcends traditional functional boundaries of project management, ERP, CRM, and supply chain management (SCM) to include requests from areas like project accounting, change management, time/expense, and analytics that surround the work being accomplished.

The bottom line.

Oracle’s acquisition signals its intent to prioritize project based businesses such as architecture, engineering and construction, government contracting aerospace and defense, professional services, oil and gas, and utilities. Expect more consolidation in this industry as project focused businesses gain the attention of apps vendors and the users who already benefit from this project focused world.

For deeper analysis check it out on the Forrester blog.

Copyright © 2008 R Wang. All rights reserved.

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