Oracle Acquires DataFox

Oracle recently acquired DataFox, providing them with access to 2.8 million company profiles, including funding and M&A data.  DataFox “gives customers real-time insight to know when a business exhibits noteworthy behaviors.”

“The combination of Oracle and DataFox will enhance Oracle Cloud Applications with an extensive set of trusted company-level data and signals, enabling customers to reach even better decisions and business outcomes,” wrote Oracle’s EVP of Applications Development Steve Miranda to customers and partners.

Oracle provides the following deal shorthand:

Oracle Cloud Applications + DataFox = Even Smarter Decisions

DataFox is growing its database at 1.2 million companies annually.  The database will deliver real-time insights into its cloud-based ERP, CX, HCM and SCM platforms.

DataFox Data Engine Overview (Oracle Presentation, October 23, 2018)
DataFox Data Engine Overview (Oracle Presentation, October 23, 2018)

In a bit of extreme puffery, Oracle described DataFox as the “the most current, precise and expansive set of company-level information and insightful data.”  Bureau van Dijk and Dun & Bradstreet have 50X the active company coverage including detailed global linkage, risk models, and multi-year financial data.  Bureau van Dijk also offers the Zephyr database, an M&A and funding dataset with over twenty years of closed, pending, and rumored deals.  Where DataFox may have an advantage is in their focus on mid-size and emerging companies which have been recently funded, but this is a small subset of the company universe.

DataFox will continue to sell and support its products.  However, the DataFox roadmap and product line are fluid:

“Oracle is currently reviewing the existing DataFox product roadmap and will be providing guidance to customers in accordance with Oracle’s standard product communication policies. Any resulting features and timing of release of such features as determined by Oracle’s review of DataFox’s product roadmap are at the sole discretion of Oracle. All product roadmap information, whether communicated by DataFox or by Oracle, does not represent a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. It is intended for information purposes only, and may not be incorporated into any contract.”

Along with AI insights, Oracle called out the needs for quality data to back data maintenance, artificial intelligence, and business signals.

Customer Data Challenges (Oracle Presentation, October 23, 2018)
Customer Data Challenges (Oracle Presentation, October 23, 2018)

DataFox has over 275 customers including Goldman Sachs, Bain & Company, Outreach, Live Ramp, and Twilio.

DataFox raised $19 million in funding.  Terms of the deal were not disclosed.  In January 2017, DataFox was valued at $33 million by Pitchbook.

Oracle should study Salesforce’s acquisition of Jigsaw (later renamed Data.com) as a cautionary tale.  Software companies struggle in selling data files as company and contact data decays rapidly and it is difficult to push data quality above 90% absent large editorial investments.  Furthermore, Jigsaw never represented more than 1% of Salesforce revenue so quickly fell off of the company’s internal radar.  The firm is now looking to decommission Data.com and asking its AppExchange partners to fill the sales intelligence and data hygiene gap left in its absence.  Coincidentally, DataFox is one of Salesforce’s Lightning Data partners.

On the positive side, LinkedIn hit $1.3 billion last quarter and has thrived under Microsoft’s ownership.  However, LinkedIn was a much more mature company at acquisition than DataFox with multiple revenue streams and a unique user generated content model.  Microsoft has provided LinkedIn with development capital and allowed it to maintain its independence.  It has also looked to leverage LinkedIn and Microsoft strengths when building sales and marketing products, instead of simply copying other vendors.  For example, Sales Navigator continues to respect the privacy of its members while using aggregated data to provide hiring and employment insights that other companies cannot deliver.  Navigator has also added strong messaging tools (chat, InMail, and PointDrive) which work around its lack of company emails.  Other innovations include SNAP workflow connectors, its new Pipeline CRM updating tool, and Buyer’s Circle for identifying the buying committee at large firms.

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