Aconex, an Australian based company, offers one of the most influential Project Management programs in the world. The Aconex project collaboration solution provides complete visibility and management of data to everyone involved in a project, including managers, builders, contractors, owners, and other teams. The software is particularly useful in the construction industry. The Aconex project management program has been used in over $1 trillion worth of projects by 70,000 user organizations in 70 different countries. With a software this popular it makes sense that Oracle likes the prospect of purchasing Aconex and adapting its program to fit into their own technology capabilities.
Oracle, a California based software company, has offered to buy Aconex for $1.2 billion. This deal is potentially the latest attempt to take on Amazon and others in selling cloud-based services. The hope is that Oracle can incorporate the Aconex systems into its cloud-based capabilities, therefore bringing the benefits of Aconex to more customers. Oracle recognizes the benefits of expanding their influence in the engineering and project development market. It’s a $14 trillion industry and the industry is expected to grow by $17.5 trillion by 2030. The engineering and construction industry will need to harness modern technology in order to continue this growth. Oracle believes there will be great synergies for the two companies and the Board of Directors at Aconex is fully behind the deal. This deal could really increase the effectiveness of the industry and with Oracle’s technology Aconex is very excited about the future.
Digital tools are becoming part of the daily life of many companies, and these tools are becoming increasingly important to stay ahead of the competition and drive down costs. Whether its streamlining processes or just going paperless its ever more important for companies to adapt. With this trend it seems this is an ideal time for Oracle to buy Aconex. The question is what effect will this have on the industry?
Project management is a process of defining, organizing, planning, monitoring (assessing risks), and controlling a project. Clearly Aconex has had success reaching many companies with their programs but using cloud-based technology can lead to significant improvements in how they help companies with their organization and planning as well as their monitoring. The cloud allows information to be accessed anywhere by anyone, making planning much easier, as all those involved in decisions will be privy to the same information. Organizing using a cloud software can be much easier because of the ease of access to the information necessary. And finally, monitoring and assessing risk is likely to be benefitted as well because all necessary information is in one place so inconsistencies in project planning can be more easily detected.
With all these benefits to the Aconex program itself, it’s also important to note that Oracle has been around for 40 years as opposed to 18 for Aconex so the buyout will open Aconex up to Oracle’s large market of connections as well as many new potential users. The new technology of Oracle could also expand their potential range of users. What do you think the effects of this buyout will have on the engineering and construction industry?
Here are a few links discussing the buyout and Aconex’s program