Larry Ellison

Oracle buying 'cloud' business software provider NetSuite

Software mogul Larry Ellison once famously mocked cloud computing as a fad. Now his company, Oracle, will spend $9.3 billion to acquire cloud upstart NetSuite.

NetSuite is just the latest cloud acquisition by Oracle, and its biggest splurge in more than a decade. It paid $11.1 billion for PeopleSoft in 2005.

More businesses are switching to the cloud model because it provides flexibility and saves on the cost of running their own computers. Oracle and its leading competitors, including Microsoft and IBM, are increasingly trying to beef up their cloud offerings.

NetSuite, which was founded by a former Oracle executive, makes business software that runs in NetSuite's...