Oracle-Micros POS System On The Way
I can only speak about the information that is public and it is massive: Oracle is in final talks to acquire the worlds largest POS company, Micros for perhaps as much as $5 billion dollars. I can say that I have been highly aware of many talks and very large shifts in the market and this is just the tip of the iceberg. The Oracle acquisition makes great sense as legacy POS systems move to a hybrid of local and cloud based systems.
The signs that legacy POS systems are now a very hot market have been rising slowly over the last five years. The primary attention was generated by startup companies that held the tech media captivated by the incorrect notion of “disruption” of the traditional legacy POS companies using iPads. There has been a huge flow of creativity in the very low end of the POS market with the rise of iPad and iPhone POS systems. This has carved a niche market for companies like Square, Revel and to some extent PayPal and others. However there is a huge chasm to cross to meet the demands of dedicated POS systems that are fault tolerant and redundant at larger merchants. Simphony Is Music To The Ears Of Oracle
With 6,400 employees and systems at 370,000 restaurants, 30,000 hotels and 59,000 retail stores, Micros is the largest POS company in the US. NCR/Radiant is a close second. It is important to note that Micros just about owns the middle to large business POS marketplace. The Simphony software system is running the POS at Starbuck, IHOP, Burger King, and Ben & Jerry’s, Hilton, Hyatt, Marriott and thousands of other notable businesses. Oracle already is hosting the huge database system Simphony uses and can offer a big cost savings to the merged operations.
The POS market segment for the last decade has been stagnate and innovation was far behind Moore’s Law. There are some exceptions where there is innovation in the traditional POS market. Companies like Harbortouch lead the market with highly creative business models and distribution systems as well as more flexible software and technology. Most of the attention however has been at the far low end of the market with iPad based entry level cash register/POS systems.Specimen of iPad based cash registers and POS systems.
This shift will create a huge change in the existing POS market and offer high competition to all startups and legacy companies along with creating huge opportunities. If you are even slightly related to the POS systems industry, startup or legacy company it is absolutely imperative to fully understand the impact this acquisition will have. To ignore this would be a spectacular mistake. Apple Timing!?
The timing is perfect and appropriate. Larry Ellison Oracle CEO, Steve Jobs best friend
, seems to have the very pulse of the industry in his focus. I can say that this acquisition fully has an Apple cohort
that will frankly stun just about everyone. It is all in the clouds
 Oracle Said to Near Deal to Buy Micros Systems