Is Oracle Coming for Broadsoft?

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Is Oracle Coming for Broadsoft?

Today, Broadsoft's market cap is about $733M; it would cost Oracle approximately $890M to buy BSFT to complete the Telecom acquisition package of Tekelec, Acme Packet, Oracle's marketing automation (Eloqua) and customer service (RightNow) offering.

Tekelec evolved from a class 4 switch to some kind of mobile policy machine with connections to IMS and LTE. One of the problems facing Hosted PBX providers presently is that mobility is like a patch or add-on. There are limitations for the mobility play due to a bunch of factors, like too many devices in the marketplace, multiple platforms (iOS, Android, Win8, Blackberry), and a separate carrier provides the cell service. Even MVNO isn't a patch because it isn't profitable.

The rumors have been swirling about Oracle buying Broadsoft. I just don't see it. It would be easier if they just integrated a solution that would plug into BroadWorks. While BSFT does have 400 carrier customers, that has flatlined. How many more players are going to jump into the Hosted VoIP space vai Broadsoft at a cost of about a million? Why do you think they announced a white label plan? They have to start squeezing out growth from somewhere. The BroadCloud services are falling flat, mainly because the service providers are having a hard enough time selling HPBX let allow add-ons like video conferencing and IM. Microsoft Lync is taking up a lot of the air in that room anyway.

How many BSFT customers would add Oracle services? Many already use Acme Packet SBCs. Oracle could get closer to these customers, and could use some help with automation in the marketing, deployment and customer servcie space. So if Oracle could deliver those systems within a reasonable budget, that would be the squeeze needed.

In similar news, apparently TWC is open to a merger with Charter.

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