What Is Oracle Corporation (ORCL) Really Gaining From Acme Packet, Inc. (APKT)?

Can Oracle gain meaningful ground?
Still, it’s a big gamble to think that an Oracle/Acme Packet union can fend off more prominent names such as Cisco, which recently acquired Intucell for $475 million in cash. Granted, Intucell is not Acme Packet, but Intucell’s self-optimized network — or SON — software platform offers some of the same benefits as the Net-Net series since it can intelligently manage network traffic in real time. For now, at least, this means Oracle does not have to worry about the smaller players such as Alcatel Lucent SA (ADR) (NYSE:ALU) and Ciena Corporation (NASDAQ:CIEN).

Then again, it’s also possible that I’m making too much it this, especially since IP packet transport or data transmission is not Oracle’s core business. Rather, this is a company that is known for its expertise in data analytics and the cloud, an area where it competes with the likes of salesforce.com, inc. (NYSE:CRM) and International Business Machines Corp. (NYSE:IBM). Essentially, this deal for Acme Packet just might have been Oracle’s signature piece to its model — a way to create separation from core rivals.

With that in mind, it certainly introduces the possibility that more deals are on the horizon. Oracle has always been considered a savvy acquirer. And with the premium it’s paying for Acme Packet, Oracle will certainly want to protect this investment in any way it feels necessary, including more acquisitions. For now, investors are stuck trying to decipher how much value Acme Packet has brought Oracle.

Considering Acme Packet’s 40% share in the SBC market, this is addressable territory Oracle can use. In that regard, neither Salesforce, IBM nor Microsoft Corporation (NASDAQ:MSFT) has such an advantage, or the ability to pivot off of their cloud offerings. So, it’s fair to suggest, against these rivals, Oracle should begin to grow incremental market share. To what extent remains to be seen. And it will all hinge on how well and how quickly Oracle can synergize this deal. This not only makes this stock interesting, but it appears undervalued by at least 15%.

The article What Is Oracle Really Gaining From Acme Packet? originally appeared on Fool.com and is written by Richard Saintvilus.

Fool contributor Richard Saintvilus has no position in any stocks mentioned. The Motley Fool recommends Acme Packet, Cisco Systems, and Salesforce.com. The Motley Fool owns shares of International Business Machines (NYSE:IBM)., Microsoft, and Oracle.

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