On the heels of Oracle\u2019s announcement of intent to buy NetSuite for $9.3 billion, analysts are weighing in with varying opinions on what this means to Oracle and the ERP market. At the end of the day, this acquisition is about buying market share, adding NetSuite\u2019s recurring cloud revenue, and jockeying for position in the well-publicized race to be the first $10 billion cloud company. Here are four things to keep in mind as a result of this acquisition:\n1. Oracle Couldn\u2019t Crack the SMB Market\nOracle needed an entry into the SMB market, but this acquisition may end up damaging NetSuite\u2019s reputation among smaller companies. There is no indication that Oracle has the culture, products, or pricing to serve SMB buyers.\u00a0Smaller companies may be better off looking elsewhere for their cloud ERP.\n2. Bigger Isn\u2019t Always Better\nCreating a bigger, broader company isn\u2019t about better serving customers, it\u2019s about bigger ERP market share. What happens when these giant legacy software companies buy companies is that they slow them down, destroy their agility, and cripple their innovation. The parent doesn\u2019t become more cloud-like\u2014the acquired business simply gets absorbed into the status quo, now having to compete for limited R&D dollars with myriad other products.\n3. On-Premises Is Not the Cloud\nEven post-acquisition, the vast majority of Oracle\u2019s customers and revenue will be tied to old, on-premises software. The process for converting legacy ERP customers to the cloud has not yielded the results Oracle (and other legacy ERP vendors) had hoped for. Buying yet another cloud solution does not make Oracle any more attractive or a cloud leader, and spending nearly $10 billion to plug a product gap shows just how difficult it is to develop and understand how to run a successful cloud business.\n4. Assimilation Is Complex\nAdding a fifth ERP product will certainly create another set of positioning headaches for Oracle, which has struggled for years to explain the role of Oracle ERP Cloud (aka Fusion) to both existing customers and prospects. Oracle co-CEO Mark Hurd claims that NetSuite\u2019s products are \u201ccomplementary,\u201d but,\u00a0in fact,\u00a0they represent extreme overlap in functionality and targeted verticals with Oracle\u2019s existing ERP offerings.\nThis isn\u2019t all bad\u00a0news\u00a0though. The announcement stands as one of the software industry\u2019s strongest validations that cloud ERP is the way forward. Savvy organizations will continue to choose both products and vendors that are completely committed to the\u00a0cloud,\u00a0because native cloud solutions continue to outpace legacy offerings in delivering customer-focused innovation.\nNot all cloud ERP solutions are the same. Learn more by downloading the whitepaper, Debunking Common Myths and Misconceptions About Cloud ERP.