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Posted by William Band on October 24, 2011
The acquisition of RightNow by Oracle makes sense for both companies’ CRM solutions strategies. Oracle wants to beef up its overall “cloud” portfolio. This is a strength of RightNow, one of the pioneers of the SaaS deployment model. It also needs a stronger play in the customer service sector — an area that salesforce.com targeted several years ago. This is the core domain strength of RightNow.
RightNow has had good success, posting strong growth over the last several years — but a $250 million software company found itself at an awkward size to compete against giants like Oracle, SAP, and Microsoft.
The big risk to this deal is that the corporate cultures of Oracle and RightNow could not be more different. Oracle’s bare-knuckle approach to sales and how it treats customers is the complete opposite of RightNow’s ethos of client centricity and flexibility.
Many clients that have chosen RightNow may not be happy to hear that Oracle is their new software supplier for customer service. And the employees at RightNow are likely to find working for Oracle an unpleasant contrast to Montana-based RightNow’s corporate ethos.
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