Wednesday, September 21, 2005

Oracle buys G-log, a logistics and transportation management software company

I thought Oracle had bought enough companies this year, evidently not. They’ve just announced the purchase of G-log which will provide a Comprehensive Logistics Management Platform to Complement Oracle’s Supply Chain Applications. According to the press statement:

Redwood Shores, Calif   20-SEP-2005   Oracle announced today that it agreed to buy G-Log, a privately held provider of logistics and transportation management software. The parties anticipate closing the transaction by the end of 2005, subject to certain regulatory approvals and other customary conditions. Financial details were not disclosed.

Globalization, increasing fuel costs, outsourcing, increased security and regulation, and transportation capacity shortages are driving the need for sophisticated logistics and transportation applications. G-Log delivers a single platform to plan, optimize, execute, analyze, and react to every aspect of supply chain flow. By bringing together logistics processes, data, knowledge and analysis in a single business engine, G-Log’s products allow companies to lower the total cost of ownership while giving them the ability to drive an integrated, information driven enterprise.

“The acquisition of G-Log will allow Oracle to offer a comprehensive supply chain and logistics management solution through which companies can better manage their global supply chains,” said Oracle Senior Vice President of Applications Development Rick Jewell. “With G-Log’s proven transportation management platform and Oracle’s leading technology infrastructure, ERP and supply chain applications, customers will now have an integrated offering for the lean enterprise.”

Over 50 percent of G-Log’s customers have Oracle applications and after completion of the acquisition, it is expected customers will recognize immediate benefits from the combination. G-Log’s customer base includes industry-leading shippers and logistics service providers such as Big Lots, Brown Shoe, DuPont, Exel, Family Dollar Stores, Giant Eagle, Halliburton, Kuehne & Nagel, Rohm and Haas, Tesco, Toll Solutions, UPM and Volvo.

“By combining the talents and products of both organizations, Oracle will be better able to address evolving customer needs and effectively respond to industry trends that are driving the demand for complex logistics solutions,” said G-Log Chief Executive Officer David Cairns.

This is an interesting deal, according to an AMR Research article, entitled Oracle Buys G-Log, Potential Top Slot in SCM:

If Oracle can execute and all other market assumptions stay the same, the acquisition has the potential to propel Oracle past SAP to the No. 1 slot in 2005 Supply Chain Management (SCM) market share.

Looks like Oracle is definitely turning up the heat on SAP! I read with great amusement this ITtoolbox article entitled SAP executive knocks Oracle-Siebel deal, says Oracle will fail which outlines how Bill McDermott, chief executive of SAP’s North American unit, told participants at a recent mergers-and-acquisition conference,  Oracle “continues to fail, will continue to fail, and we’re going to help them in every way we can.” Looks like things are getting nasty!!