Ecommerce News

Oracle develops appetite for bigger B2B ecommerce market share


Oracle Corp. and the company’s high-profile founder and chairman, Larry Ellison, love taking on larger-than-life challenges. And the latest epic Ellison has in mind for Oracle is acquiring a bigger piece of the sales pie in the B2B ecommerce technology and services market.

“Automating B2B commerce is yet another huge opportunity for Oracle,” Ellison told analysts on the company’s recent year-end earnings call.

Oracle already has a significant operations base in B2B ecommerce and supply chain and enterprise resource management (ERP) systems. In 2016, Oracle spent $9.3 billion to acquire NetSuite. NetSuite is a developer and service provider. It provides companies with cloud-based applications to run its business financials, ERP, customer relationship management, human resources, professional services, ecommerce systems and more.

Building on a presence in health care

Oracle’s forthcoming B2B ecommerce strategy is to leverage its health care presence and NetSuite’s customer base. In health care, Oracle expects to close by later this summer its $28.3 billion acquisition of Cerner Corp. Cerner is one of the largest electronic medical records system vendors.

“We already have over 30,000 cloud ERP customers, including many of the world’s most important banks and leading logistics companies,” Ellison told analysts. “We’ve got a very strong position in health care with the providers. … In Q4, we closed UnitedHealthcare, a win over SAP.”

Those providers include:

  • Kaiser
  • Mayo Clinic
  • Cleveland Clinic
  • Mount Sinai
  • Northwell House
  • Tenant
  • Atrium Health
  • Markel
  • Humana
  • Cigna

Oracle also sees room to grow B2B ecommerce in other vertical markets such as financial services and retail, he said.

“We have a very, very strong position in financial services,” Ellison told analysts. “That’s one of the key groups of partners that we’re working to automate B2B commerce, along with the logistics companies.”

In retail, Oracle already has:

Ellison said Oracle added Lowe’s, Albertsons, Sherwood Williams and Abercrombie & Fitch in Q4.

Bringing ecommerce technology to ERP customers

Leveraging new and existing customers of ERP software will provide the framework to grow B2B digital commerce, he said.

“We’re very excited about our momentum in ERP and how we can expand ERP from what it was in — when it was an on-premise system to what it can be in terms of B2B commerce automation, now that it’s a cloud system,” Ellison told analysts.

Oracle does not break out ecommerce sales.

For the 2022 fiscal year ended May 31, Oracle reported:

  • Total sales grew 5% to $42.44 billion from $40.48 billion in fiscal 2021.
  • The company’s cloud services and licensing support revenue in fiscal 2022 was $5.21 billion. That’s a 20% increase from $4.35 billion in the prior fiscal year.
  • $6.71 billion in net income compared with $13.75 billion in fiscal 2021.

Sign up

Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan.

Follow us on LinkedIn and be the first to know when new Digital Commerce 360 B2B News content is published.

Favorite



Source link

Leave a Comment