Broadcast Vendor M&A: Oracle to Acquire Front Porch Digital

Posted by Joe Zaller
Sep 14 2014

Oracle announced that it has signed an agreement to acquire library and archive management provider Front Porch Digital.

Terms of the deal were not disclosed.

According to Oracle, Front Porch Digital’s management team and employees are expected to join Oracle and continue in their current capacity

On the face of it, this is a deal that makes sense. Thanks to the widespread use of digital acquisition technology, the industry has seen huge growth in the amount of digital content being created, with shooting ratios expanding to up to 200:1 At the same time content owners are increasingly looking to find additional value in their media assets, and must find a way to efficiently manage and monetize them, either on-premise or in the cloud.

Oracle’s media and entertainment storage platforms come primarily through the its acquisition of Sun Microsystems in 2010.  Sun had previously acquired LTO library provider StorageTek.  After acquiring Sun, Oracle put renewed emphasis on its media storage products, just as digital content creation exploded, and archive management became an increasingly important requirement.

By combining Oracle’s disk-based and LTO storage platforms, with FPD’s storage management solutions, Oracle now has the capability to sell both the storage hardware and the crucial software management layer that supports it, and do so at scale.


Oracle buys FPD -- benefits of combination


Oracle says the acquisition of Front Porch Digital “will create a comprehensive, high-performance cloud or on-premise digital content storage management solution that empowers customers to modernize and simplify content management, increase efficiencies, optimize resources, and increase their bottom line.

Of course this combination also raises competitive issues, since Front Porch Digital’s partner ecosystem includes a wide variety of other storage vendors, who may in future shy away from working with a management platform owned by a competitor.

To counter this issue, Oracle says it “is committed to maintaining Front Porch Digital’s open integration platform with third-party systems and applications, and plans to further augment Front Porch Digital solutions with Oracle technologies to deliver enhanced features and functionalities.”

“Organizations need a modern, integrated content storage management solution to manage and monetize their valuable rich media assets,” said John Fowler, Executive Vice President of Oracle Systems. “We will continue to build on Front Porch Digital’s success and unique capabilities, which complement Oracle’s existing high performance and scalable engineered storage solutions.”

“Front Porch Digital has developed industry leading solutions that help companies manage large-scale digital content,” said Mike Knaisch, CEO, Front Porch Digital. “We are thrilled to be joining Oracle to continue our long-standing partnership. This combination will enable us to better serve and support our customers at a global scale.”

The proposed transaction is subject to customary closing conditions. Until the transaction closes, each company will continue to operate independently, and it is business as usual.




Related Content:

Press Release: Oracle Buys Front Porch Digital

Oracle Acquires Front Porch Digital — General Presentation

Oracle Buys Front Porch Digital — FAQ

Customer and Partner Letter | Oracle and Front Porch Digital



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