Oracle Preps the Channel for Telecom Convergence

Oracle's impending acquisition of network-signaling firm Tekelec on the heels of its Acme Packet buy preps service providers for an IT-telecom crossover.

Oracle is getting serious about engaging with telecommunication service providers, and as it drips out details of an impending deal to buy network-signaling vendor Tekelec, all indications are that the company is putting its money where its mouth is in its IT-telecom crossover plans.

"This acquisition further extends Oracle's move into the heart of telecom networks," said Dana Cooperson, principal analyst at Ovum. "Oracle has in the past partnered to provide these capabilities, but by bringing them in-house, it will have more opportunity to shape the road map and combine the capabilities in a more tightly coupled solution."

Oracle announced late last month that it was purchasing Tekelec for an undisclosed sum to add network signaling, policy control and subscriber data management solutions to the Oracle Communications portfolio. Executives say the goal is to give service providers a way to efficiently allocate network resources and monetize personalized communications services.

The move came a little over a month after the company paid $2.1 billion to buy Acme Packet for Acme's session border control product base.

According to Bhaskar Gorti, senior vice president and general manager for Oracle, the deal was a natural extension of the explosion in network signaling and data traffic created by the proliferation of mobile devices, applications and connected services.

"To address these increased network workloads, and monetize cloud, over-the-top and personalized services, service providers require intelligent network control technologies," Gorti said. He explained that the acquisition was intended to create a fleshed-out portfolio " to help service providers efficiently allocate network resources and monetize personalized communications services."

Oracle's move into the pure-bred telecom space is a signal of its shift to prepare itself and its partners for the convergence of the IT and telecom worlds, said Dimitris Mavrakis, telecommunications analyst for Informa.

"By acquiring Acme Packet and Tekelec, the vendor is preparing for mobile network virtualization and mobile SDNs [software-defined networks]," he said. "Their acquisition and patent holdings make Oracle a much stronger player in telecom—perhaps stronger than some established infrastructure providers would like."

Ericka Chickowsk, a contributing writer to Channel Insider, covers technology and the channel.