Oracle ( ORCL ) recently announced that it had acquired InQuira, which offered analytics and knowledge management solutions for customer relationship management ( CRM ) platforms. The technology from InQuira will help improve the capabilities of Oracle's existing CRM products including its Fusion and Siebel CRM applications. Oracle currently competes primarily with SAP ( SAP ), Salesforce.com ( CRM ) and Microsoft ( MSFT ) in the CRM business.
We currently have a $37 Trefis price estimate for Oracle , which implies roughly around 25% upside to the company's current market price.
The InQuira acquisition will buttress Oracle's existing CRM offerings like Fusion and Siebel CRM helping it gain additional market share with its improved offerings. Oracle's Application Software business which is comprised of its ERP, CRM and other products contributes nearly 28% of its total software revenues and contributes almost 25% of our valuation for Oracle.
One of the Oracle's Senior VP's wrote:
The acquisition of InQuira provides Oracle with a complete knowledge-management suite, integrated with self-service support, online customer forums and agent-assisted CRM. We expect InQuira to be the centerpiece for Oracle Fusion CRM Service. " stated Anthony Lye, senior vice president of Oracle CRM.
SAP is the market leader in the CRM business with an estimated market share of nearly 22% in 2010 followed by Oracle with around 16% market share. We forecast the global CRM market to reach around $18 billion by the end of 2011.