Oracle Buys Datalogix to Bolster Its Marketing Cloud
The acquisition will give Oracle new offline analytics capabilities.
Posted Dec 23, 2014
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Oracle expanded the offerings of its Marketing Cloud this week with the acquisition of Datalogix, a company that analyzes consumer purchasing with the intent of strengthening online marketing campaigns.

Drawing on measurements and data gathered from online and offline sources, including television, digital, and mobile, Datalogix creates detailed consumer profiles that companies can use to foster targeted customer interactions and boost sales. The program will run on Oracle's Data Cloud, the data as a service (DaaS) platform the company released this July following its acquisition of the data management platform BlueKai.

Datalogix is currently partnered with Google, Facebook, and Twitter, among others. The acquisition comes roughly eight months after Datalogix announced a partnership with Salesforce ExactTarget.

Oracle has been sailing its ship further into the cloud following announcements made at OpenWorld this September; this represents another effort to consolidate its marketing applications and make them available through a unified cloud platform. "The combination of SaaS and DaaS is a very lucrative market," Holger Mueller, principal analyst and vice president at Constellation Research, says. "It increases value and revenue streams to both software and services."

The addition comes as welcome news to Integrate, a cloud marketing platform and a partner of Oracle's. Integrate views the acquisition as an opportunity to provide its customer base with access to affordable real-time insight and enhanced performances. "As Oracle and Datalogix join forces," Scott Vaughan, chief marketing officer of Integrate, states in an email, "Integrate customers now have a view into success and audience metrics."

Vaughan also suggests that attaching Datalogix's capabilities to Oracle's package will make matters more convenient for existing customers. "An Oracle customer can now look at all demographic and behavioral data in their nurture path without adding fields to their forms," he states. "[It also allows] the ability to take those insights to the BlueKai acquisition component to buy more [like-minded] traffic to fill your funnel."

Ray Wang, CEO and principal analyst at Constellation Research, sees the potential of the partnership for marketers, yet recognizes its limitations too. With Datalogix, he states in an email, "marketers have a better shot of establishing the identity of their prospects and developing more contextually relevant campaigns. The improved signal-to-noise ratio [and] greater context will be a good step towards improving [conversion rate optimization]." Still, for those who lack commerce, Wang continues, none of this is relevant.

Though optimistic about the acquisition, Mueller says it is still hard to judge what will come out of the move, and that the implications are due to unfold over the next four quarters. "If Oracle gets the marketing and Datalogix combination right, it will have a very compelling set of propositions to offer CMOs," he says. "Oracle has a massive acquisition history and a good integration track record, but every acquisition is unique. In the case of Datalogix, we need to see what the product plans will be, how they resound with customers, and lastly, how they succeed in the marketplace."

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