Oracle(s orcl) is buying Taleo (s tleo), a “cloud-based talent management” company for $1.9 billion or $46 a share. Oracle said Taleo’s SaaS services will become part of the Oracle public cloud. Taleo could bring both more cloud credibility and more vertical expertise to Oracle’s broadening applications portfolio.
The news comes two months after SAP(s sap), Oracle’s chief rival in enterprise applications, snapped up SuccessFactors, a SaaS-based talent management (aka human resources management) company just down the road from Oracle’ s Redwood Shores, Calif. headquarters, for $3.4 billion. At that time, many wondered why Oracle hadn’t struck first.
Both Taleo and SuccessFactors deals are further proof that these legacy enterprise software players see the need to beef up both their cloud credentials and their vertical industry focus. The SaaS market is booming but the biggest opportunity is seen in applications that attack vertical niches and for which vendors…
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