Technology firm Oracle has announced that it will be acquiring cloud-based configure, price and quote (CPQ) company BigMachines.
The financial details have been left undisclosed by the companies, and both will continue to operate separately till the transaction is completed.
The acquisition will provide Oracle a cloud-based tool developed by BigMachines which helps sales organizations accelerate the conversion of opportunities into revenue through automation.
BigMachines’ CPQ Cloud accelerates the conversion of sales opportunities into revenue by automating the sales order process with guided selling, dynamic pricing, and an easy-to-use workflow approval process, accessible anywhere, on any device. “BigMachines’ CPQ cloud extends sales automation to include the creation of an optimal quote, which enables sales personnel to easily configure and price complex products, select the best options, promotions and deal terms, and include up sell and renewals, all using automated workflows.”
Thomas Kurian, Executive Vice President, Oracle Development said, “By adding BigMachines’ CPQ Cloud to the Oracle Cloud, companies will be able to drive more revenue and increase customer satisfaction with a seamlessly integrated process across marketing and sales, pricing and quoting, and fulfillment and service.”
According to Liz Herbert, a Forrester Analyst, the acquisition of this kind of sales, could be a direct challenge to Salesforce, which has been eroding the customer base for Oracle’s customer relationship management software called Siebel and this could also create pressure on salesforce.com to buy or build deeper CPQ functionality itself.
Even in a news statement to TalkingCloud, BigMachines co-founder and former CEO Godard Abel said this acquisition may be an outcome of Oracle trying to play “catch-up” with Salesforce.com (CRM). BigMachines software is currently also deployed through Salesforce.
As per the company, BigMachines has more than 275 companies which use CPQ cloud to streamline their sales processes.
Oracle has made a number of acquisitions since 2011 these include, Collective Intellect (June 2012), Compendium (October 2013), Eloqua (December 2012), Endeca (October 2011), InQuira (July 2011), Involver (July 2012), RightNow (October 2011), SelectMinds (September 2012), Taleo (February 2012) and Vitrue (May 2012).
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