Analyst: Here's How Much Salesforce Will Pay Oracle For That Huge Nine-Year Deal

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Larry Ellison

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Oracle CEO Larry Ellison

Marc Benioff and Larry Ellison have repaired their friendship, but they've yet to mention one little detail: Just how much is Salesforce really spending with Oracle?

Benioff, Salesforce's CEO, said Thursday that the nine-year deal would cut his costs for his database infrastructure in half.

But we just learned from JMP Securities analyst Pat Walravens that Benioff will still be paying a pretty penny to Oracle. 

Walravens estimates Salesforce will pay $300 million over nine years for  Oracle's database and other software and hardware.

Given the scope and size of Salesforce's operation, that seems like a good deal. As the largest software-as-a-service cloud, Salesforce.com processes 770 million transactions PER DAY, according to its status page.

For Oracle, that averages out to $33 million a year, which is a nice win for Ellison, too.

Here's more details on the deal and the other two big announcements Oracle made this week:

Here's Why Marc Benioff Agreed To Make Friends With Larry Ellison Again

Larry Ellison Just Won Big By Signing A Nine-Year Deal With Salesforce

With A New Cloud Partnership, Oracle And NetSuite Are Officially Going Steady, Says Hurd

Microsoft's New Partnership With Oracle Isn't Game-Changing, But It Sure Is Great For Enterprise Customers

 

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