Oracle buying Tekelec for network signaling software

Oracle is filling out its product stack for communications with the acquisition of Tekelec, which provides network signaling, policy control and subscriber data management software for mobile data networks.

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Oracle is filling out its product stack for communications with the acquisition of Tekelec, which provides network signaling, policy control and subscriber data management software for mobile data networks.

Terms of the deal, which is expected to close in the first half of this year, were not disclosed.

The explosive growth of smartphones and mobile services has put new strains on mobile networks, and Tekelec's products can help providers manage these workloads as well as optimize profits, according to its website.

Oracle plans to roll Tekelec's capabilities into its communications product portfolio and will combine them with products gained through the pending acquisition of network equipment vendor Acme Packet, according to a statement.

The Tekelec deal will also give Oracle greater entry into the world's largest service providers, as its customers include T-Mobile, AT&T, Verizon and Orange.

Oracle is keen on increasing its telco business, and comments made by CEO Larry Ellison during the company's earnings call last week foreshadowed the Tekelec deal.

"What we'd like to become is one of the most strategic suppliers to telcos overall, which involves broadening our footprint of what we supply them," he said. Oracle will achieve this through its own engineering efforts as well as acquisitions, Ellison added.

Commenting on the deal, Dana Cooperson, principal analyst at Ovum said, “This acquisition further extends Oracle’s move into the heart of telecom networks. Tekelec will extend Oracle Communication’s network control capabilities, which it also bolstered with its February announcement to acquire Acme Packet.

“Tekelec also focuses on extending its service control solutions, adding policy control and subscriber data management to its list of capabilities. Oracle has in the past partnered to provide these capabilities, but by bringing them in-house it will have more opportunity to shape the roadmap and combine the capabilities in a more tightly-coupled solution.
Ovum saw the move as highlighting the continued blending of telecom and IT; the importance of software as the key driver of network capabilities; and the growing significance of anytime/anywhere communications.

“Expect Oracle’s telecom-focused competitors (Alcatel-Lucent, Huawei, Ericsson, etc.) and it’s IT-focused competitors (HP, SAP, SAS Institute) to do more strategic soul-searching and, as their financial situation allows, to pursue acquisitions of their own,” Cooperson added.

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