Oracle sets its sights on engineering and construction with Textura buy

It's paying US$663 million to complement its Primavera project-management software

Oracle is spending US$663 million to buy Textura, a company that offers cloud services for the engineering and construction industry.

Textura's products will be combined with Oracle's existing Primavera project-management suite -- the result of a 2008 acquisition by the database giant -- in the Oracle Engineering and Construction Global Business Unit, Oracle announced on Thursday. The focus of that unit will be offering a comprehensive cloud-based project control and execution platform that manages all phases of engineering and construction projects.

"The increasingly global engineering and construction industry requires digital modernization in a way that automates manual processes and embraces the power of cloud computing to easily connect the construction job site, reduce cost overruns and improve productivity," said Mike Sicilia, a senior vice president at Oracle who will lead the newly expanded business unit.

Companies are expected to spend $17.5 trillion on construction by 2030, but roughly 10 percent of that spending gets wasted, Oracle says.

The acquisition is expected to close before the end of the year. Until then, Textura will continue to operate independently.

Textura’s cloud services process $3.4 billion in payments for more than 6,000 projects each month, Oracle said. More than 85,000 contractors and subcontractors are connected to the platform.

Following this acquisition, Oracle plans to continue to invest in the engineering and construction industry, it said.

The move is an example of Oracle's longstanding strategy of buying its way into specific industries. Its 2014 purchase of Micros Systems, for instance, gained it entry into hospitality and retail.

"Oracle hasn’t led in many key IT transitions for at least a decade," said Patrick Moorhead, president and principal analyst with Moor Insights & Strategy.

"It’s not in the company’s best interests to change anything, as they have a captive customer audience," Moorhead added. "It’s hard to leave Oracle once you get it installed."

Oracle was "the last major solutions company to embrace the cloud" for that reason, leading to its strategy of growing inorganically through acquisitions, he said. "The Textura acquisition falls right in line with that strategy."

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Katherine Noyes

IDG News Service
Show Comments

Cool Tech

Crucial Ballistix Elite 32GB Kit (4 x 8GB) DDR4-3000 UDIMM

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar® JumpDrive® S57 USB 3.0 flash drive 

Learn more >

Stocking Stuffer

Plox Star Wars Death Star Levitating Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?