Oracle Gambles Big on Cloud Computing

Cloud computing is the future -- and the billion-dollar investment present for Oracle.

Oracle doubled down on cloud computing this week when it plunked down $1.9 billion for Dublin-based Taleo, according to the San Jose Mercury News.

That's the second cloud buy for Oracle in a month's time, the newspaper reported. Oracle paid $1.5 billion for RightNow Technologies last month.

Taleo offers human resources software used by 5,000 companies across the country, the newspaper reported. Cloud computing, remember, is ones and zeroes on a server separate from the one used by the client.

Oracle paid a premium for the service, paying $46 a share for the company, which traded at $38.94 a share on Wednesday, the newspaper said.

Oracle is competing with rival software giant SAP in acquiring cloud computing companies. SAP bought SuccessFactors for a few billions more. And Oracle is also buying strategically: this buy gives the company human resources software, something it lacked before, according to industry experts.