Without Micros' hardware and services know-how, Oracle would be in a tough spot to ride those waves.
Gunning for growth: As a tech industry bellwether, Oracle is under constant pressure from Wall Street to grow, even as it rakes in billions of dollars in profits each quarter. While many of Oracle's acquisitions in recent years seemed to be more about gaining new technology versus market share, that's not the case with Micros, which raked in $1.27 billion in revenue during its 2013 fiscal year, while generating $171.4 million in profits. Its products are in use at more than 330,000 restaurants and hotels around the world.
The fact is, Oracle can only squeeze so many more dollars out of its existing customers for general-purpose technology software and applications.
"As mega-vendors such as Oracle and SAP look for growth, they have to go deeper into industry-specific systems," said analyst Frank Scavo, managing partner of IT consulting firm Strativa. The Micros acquisition fills this need." It doesn't hurt that both retail and hospitality are under-served industries when it comes to enterprise systems, Scavo added.
That means Oracle sales teams will have plenty of opportunities to up-sell Micros customers, which include many of the industry's largest hotel and restaurant chains, on the rest of its ample catalog.
Sign up for MIS Asia eNewsletters.