Enterprise

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

By Julie Bort
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Larry Ellison
Oracle CEO Larry Ellison  Flickr/Oracle_Photos_Screenshots

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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Julie Bort
Julie Bort
Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.
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