Wed. Mar 17th, 2021

Purchased Austin-based StackEngine; growth driven by cloud sales

IT giant Oracle, which provides everything from data center operation to cloud applications, is investing heavily in cloud computing with the recent acquisition of Austin, Texas-based StackEngine, as well as the unveiling of plans to build a new campus in the tech hot spot.

In a joint announcement with Austin Mayor Steve Adler and Texas Gov. Greg Abbot, Oracle said the new investment “will largely be driven by growth in Oracle’s cloud sales organization.”

Oracle has a massive portfolio of cloud offerings including software, platform and infrastructure services. Oracle announced the StackEngine purchase on Dec. 18 in a very brief statement: “All StackEngine employees will be joining Oracle as part of Oracle Public Cloud.”

Oracle said it will look to grow its Austin-based workforce by more than 50% in 2016 with an emphasis on recent college graduates – the University of Texas-Austin is a premiere research institution – and tech professionals in the early stages of their careers.

“Austin was a natural choice for Oracle to invest and grow,” explained Scott Armour, direct SVP at Oracle. “We already have a high-performing employee base in the region, and the surrounding technology community is teeming with creative and innovative thinkers. Our state-of-the-art campus will be designed to inspire, support and attract top talent – with a special focus on the needs of millennials.”

The new campus will be situated on 27-acres to the south of Lady Bird Lake and to the east of I-35 near South Lakeshore Boulevard and Elmont Drive; the office and parking facilities are projected to cover 560,000-square-feet. The company will also purchase an adjacent 295-unit apartment building, the Azul Lakeshore, to house employees.

The East side corridor Oracle is targeting for development is going through a period of rapid gentrification as previously affordable units are being purchases and converted into new, upscale units at a higher price point.

Some of Oracle’s new campus will be on the site of the Lakeview apartments, which were sold to Oracle by Cypress Real Estate Advisors. In turn, Texas RioGrande Legal Aid is representing former tenants in a dispute with the real estate company.

TRLA’s Stephanie Trinh said Oracle’s plan is “a slap in the face to the residents who once resided there,” according to The Austin Chronicle.

“Oracle, the City of Austin and the developers may be pleased with this move, but it is emblematic of the largest problem affecting this city, and each has done what it can to ignore the residents who once resided there,” TRLA noted. “Oracle, the world’s second largest software company, will now benefit from Cypress Real Estate Advisor’s wrongdoings, as the city welcomes Oracle with open arms. What was affordable housing in a low-income neighborhood is now office space for one of the wealthiest companies in the world. The Lakeview families shouldn’t be treated like pawns in this developer’s game.”

Oracle already operates three facilities in Austin, two on the North Mopac Expressway and another on Riata Park Court.

And, despite objects, Adler and Abbott both lauded the investment from Oracle.

“What Oracle is doing in Austin reinforces what I’m talking about when I say that great cities do big things, especially in the technology sector,” Adler said. “With this significant investment, Oracle demonstrates that it believes in Austin and its future, and it’s serious about creating fantastic job opportunities in our community. I look forward to working with major employers like Oracle to tackle our biggest challenges, including mobility and affordability.”

“We’re positioning the State of Texas to become a home for innovation and technology,” Abbott said. “Thanks to our skilled workforce, combined with our low-tax and low-regulation environment, one of the largest tech companies in the world has chosen to expand in Austin. As Governor, I will continue to pursue policies that invite the expansion and relocation of tech companies to Texas.”

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