Oracle Acquires GoAhead Software, Market Leading Communication Services Specialist

September 26th, 2011 by Trefis Team
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Oracle (NASDAQ:ORCL), the enterprise software giant which has more than 50% share in the database market is also a major player in middleware, application software and hardware where it competes with the likes of SAP (NYSE:SAP), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM) and HP (NYSE:HPQ). Oracle announced that it would be acquiring GoAhead, which specializes in the development of service availability software for the telecom industry. [1] GoAhead’s current customer base includes Motorola, Ericsson, Alcatel Lucent etc.

Oracle recently announced a great quarter with a significant increase in its gross margins and overall revenues. We currently have a $40 Trefis price estimate for Oracle, which stands nearly 40% above the market price. Application software accounts for almost 23% of its total price estimate.

With GoAhead, Oracle Seeks to Become the Default Option for Network Equipment Providers

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GoAhead sells packaged service availability software to global network equipment providers to enable their services to remain available at all times. It has already deployed more than 100,000 instances of its software globally across multiple NEPs (network equipment providers). This acquisition will augment Oracle’s existing application software for the communications industry. Oracle can now provide a simplified hardware and software offering that can deliver service availability to its telecom clients.

According to Nigel Ball, Vice President of Oracle Communications Industry Solutions.

NEPs are moving to a standardized software and hardware platform that can deliver and manage highly available services. GoAhead software is the leading commercially available solution that is compliant with Service Availability Forum specifications, the most widely adopted standard for service availability software. The addition of GoAhead technology will help us deliver a comprehensive, standards-based, carrier-grade platform that supports the delivery of new services in the call path of the network.

We expect it to have only a marginal positive impact on the $40 Trefis price estimate for Oracle.

See our complete analysis for Oracle stock.

Notes:
  1. Oracle Acquires Communication Services Software Specialist GoAhead, eWeek [↩]