Business Lessons To Learn From $9.3 Billion Oracle-NetSuit Deal

NetSuite, ‘come let’s reason together’, calls Oracle

Anyone who imagines they can work alone winds up surrounded by nothing but rivals, without companions. The fact is no one ascends alone! Not my own words but those of a retired American professional road racing cyclist and now a celebrated author, Lance Armstrong.

This perhaps is what Zach Nelson, NetSuite’s chief executive had in mind when he agreed to seal the merging deal worth USD9.3bn with Oracle a software company based in San Francisco, America.

These news caught the world off-guard. The deal, which reunited NetSuite CEO Zach Nelson with his old boss and early investor, Oracle chairman Larry Ellison values NetSuite at $109 per share at a 19% premium to where it traded a day before. This represents the inevitable conclusion for a company that sought to strike out from its origins and a parent trying to catch up to its business offspring.

In spite of the fact that NetSuite was among the pioneer companies dedicated to providing services over the internet, its dream to sow higher in the innovation  market was elevated higher by the recent transaction with Oracle’s chairman Larry Ellison.

Zach Nelson was quoted stating that his company was excited to join Oracle and accelerate its pace of innovation. He further added that the company would benefit from Oracle’s global scale and reach to accelerate the availability of the company’s cloud solutions in more industries and more countries.

Over the years, Oracle, like other software companies, focused on expanding its remote data storage services in the face of changing corporate needs. This time not like before Mark Hurdy Oracle’s CEO was quoted saying that the two companies cloud applications are complementary, and would coexist in the marketplace forever according to Bloomberg technologies.

This historic merge by the world’s most prominent innovative companies has set pace for the world in all sectors of life. There is no one person, company, or country too powerful and contented to exist in isolation.

In spite of the fact that NetSuite came first in this prestigious industry, and has been operating as a rival of Oracle, the company saw the need to merge so that the two companies can work together.

Is it not said that “Unity is strength”? Who is not aware of this seemingly cliché adage? Agreeing to work with a rival company for the greater good of the world does not make a company any lesser, in fact it becomes more strengthened to operate on a more profitable margin.

The move by the two companies and most especially the NetSuite is such a commendable move that all people, leaders and nations should look up to. This will amicably bring to an end the neck breaking rivalry among upcoming companies all over the world.