Oracle has bought human resources software-as-a-service (SaaS) supplier Taleo for $1.9bn (£1.2bn).
The move follows rival SAP's acquisition of software-as-a-service supplier Success Factors for $3.4bn in December.
The acquisitions show the increasing enterprise acceptance of the SaaS model, said Tim Jennings, chief analyst at Ovum.
“It also emphasises the urgency that the major enterprise application vendors attach to establishing a strong position in cloud-based software. Both Oracle and SAP have existing on-premise HR solutions, but both have been prepared to pay out large sums on cloud-based equivalents, rather than simply transitioning their existing solutions to the cloud,” said Jennings.
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Michael Gregoire, CEO of Taleo, said: “We look forward to continuing to deliver the solutions and services that you have come to expect from Taleo and will be providing you with important updates on how this combination will benefit our customers and partners around the world.”