Oracle’s 9.3B acquisition of Netsuite came as no surprise to valley insiders.  The surprise came as how badly Oracle sought cloud revenue and to bring a friendly partner back into the family.  Constellation sees the following for the buy side:

• Battle for cloud revenue continues.  Oracle as with every cloud vendor is seeking to grow their subscription revenues.  Netsuite brings almost 800M in revenue and grows the overall market share.
• Serves the mid market and divisions in an end to end capacity. Netsuite gives the Oracle customer an integrated cloud ERP, CRM, and commerce suite.
• Addresses gaps in Oracle’s Industry Cloud strategy.  Netsuite’s core has been strong in manufacturing, retail, commerce, and professional services.  While Oracle addresses these products in an on-premises model, Netsuite’s cloud approach fills holes in Oracle’s cloud strategy in key verticals.