![]() ![]() “What is different this time is that the sector is in the midst of strong secular growth driven by an architectural shift to the cloud while the mid 2000s was ripe for consolidation given the significant number of inefficiently run application vendors that had hit the growth-wall.” “It could mark a return to Oracle’s days of aggressive acquisition activity during which time the company very effectively rolled-up the legacy client-server application space,” the Stifel analysts, who have a “hold” rating and $87 price target on the stock, wrote. The company has been known to buy companies in bunches, including a spree of cloud-focused acquisitions that culminated with the purchase of NetSuite, a reaction to the growing popularity of Salesforce after Oracle downplayed the rise of cloud software. “Given Salesforce’s recent M&A moves and commitment to near-term margin expansion, we believe such a move is unlikely to happen until late CY22 or sometime in CY23. ![]() “We believe it’s only a matter of time until Salesforce looks to broaden its footprint in this space,” Stifel analysts wrote late last week, after news of Oracle’s interest in Cerner first surfaced. With Microsoft and Oracle already in the game, analysts wonder if another prominent software company, Inc. “Cleary Oracle with this pending Cerner deal, and Microsoft with its planning purchase of Nuance Communications, which is also very healthcare oriented, see significant potential.” “The conventional wisdom on healthcare is that it’s a big vertical, but not one that’s adopted or embraced digital technologies as much as some others,” Third Bridge Vice President and Global Lead Scott Kessler wrote in an email Monday. See also: 20 cloud stocks expected to increase sales the most over the next two years +2.14% nearly $20 billion acquisition earlier this year of Nuance, a software company that has worked with Cerner in the past. Software companies have looked to jump into segments that have proved popular with hospitals and other healthcare providers, including Microsoft’s MSFT, The healthcare industry, one of the largest in the U.S., has been slow to move into cloud software and cloud computing due to complex rules about digital record-keeping involving health information. “With this acquisition, Oracle’s corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via a hands-free voice interface to secure cloud applications,” Oracle co-founder and Chief Technology Officer Larry Ellison said in a statement Monday morning. ![]()
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