When one of the biggest, most successful, Silicon Valley big tech companies acquires one of the biggest, most successful, healthcare tech companies…that’s the definition of a seismic event. M&A activities always create waves but this one could be a tsunami (pardon the overused metaphor).
Reaction pinged hospital leaders and clinicians via its Research Cloud to collect their thoughts on Cerner being acquired by Oracle. Here’s a bit of what we learned…
"If [Oracle] can change the core components of Cerner which make it rather cumbersome then it will be a good thing."
Overall awareness by those in the industry is still a mixed bag. Not too surprising…
"Another example of a non-healthcare entity trying to get into the industry. Typically these acquisitions (historically) have come with negative consequences. Microsoft has failed several times, Apple has failed, Amazon failed. Oracle's ERP (think Peoplesoft) is losing traction in healthcare now that Workday is maturing. I just don't see this as playing out well, outside of a possible infusion of capital they may need. That's about the only thing Oracle brings to the table here."
That 16% of potential customers would consider Cerner BECAUSE of being acquired by Oracle, versus 7% who wouldn’t, is another very positive outcome for Oracle. If they handle the (enormous) cultural, operational, and technical integration of Cerner, they may have hit a home run with this acquisition.
"My understanding is Oracle needs Cerner's cloud based data analytics and AI technologies to become more competitive with Google, Amazon, and IBM. It's a consolidation of tech talent which may or may not improve population health and value based care in the future."
We have a great deal more information on this major M&A event than has been posted in this short article but our hope is you found it at least a bit helpful and informative.
As always, thanks for stopping by…
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