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

Julie Bort
June 28, 2013
Larry Ellison
Larry Ellison


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, 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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