Database giant Oracle is hoping to boost its next-generation networking credentials with its agreement to acquire Dublin-based network analytics and data integrity specialist Netsure Telecom for an undisclosed sum.

Oracle said that Netsure will form part of its Communications Global Business Unit, serving communications service providers with network-specific applications.

Oracle’s president and general manager, Bhaskar Gorti, said, “We plan to provide service providers with the ability to improve their network ROI [return on investment] and increase their operational efficiency as they deploy and profit from next-generation IP services.”

Netsure’s customers include Cable & Wireless and Vodafone. The company’s Active Network Optimisation system is designed to help service providers to plan, optimise and trend network infrastructures, while its Reconciler system compares live data collected from the network against data that is contained in an inventory management database.

According to Netsure, Reconciler performs a vital function by ensuring data accuracy. Business intelligence algorithms applied to incorrect network data could lead to incorrect capacity planning decisions, the company said.

Gene Phifer, lead analyst on Oracle at Gartner, said the Netsure deal is part of a wider strategy aiming to boost Oracle’s presence in vertical sectors.

“Oracle has stated publicly that it will grow its footprint in other sectors,” Phifer said. “Quite apart from its significant reach in utilities and financial services, the company also has a presence in 22 industry segments.”

Phifer added that Oracle is focusing most of its efforts on the energy and telecoms sectors, and that by broadening its offerings in this way, Oracle hopes to see off growing competition from SAP.

Phifer’s views were echoed by Ovum’s senior vice president for IT research, David Mitchell, who said that Oracle’s dominance of the database market has already given it a significant presence, which it now intends to build on in the telecoms market.

“Oracle has had some success with general business applications such as finance and payroll, but over the past two to three years it has made six major acquisitions that together have created an impressive portfolio for the comms sector,” Mitchell said. He added that the communications industry is strategically important for Oracle because it has a high reliance on IT and is an important spender on software.

“Netsure’s systems are complementary to the rest of the Oracle communications portfolio and position the vendor well to provide software infrastructure support
to the growing NGN [next-generation network] phenomenon,” Mitchell said.

Both Phifer and Mitchell see no signs of a let up in the pace of Oracle’s acquisitions.
“When [Oracle chief Larry] Ellison was asked at the end of last year about whether the pace of Oracle’s acquisitions would slow down, his answer was that the next 12 months would be similar,” said Mitchell. “Larry has huge plans and growing the vertical markets is a large part of the strategy.”

Oracle said the Netsure deal will probably close by the end of this month.