Feeds

Business Objects buys ALG

Debunking the debunker

Boost IT visibility and business value

Comment Business Objects is buying ALG, which may be better known to some readers as Armstrong-Laing (I never quite understood the rationale behind changing the name, especially as ALG was likely to be confused with ASG but that's another story). Anyway, ALG is one of the leaders in the market for activity-based costing (ABC) and management (ABM). Indeed, it was probably the leading pure play vendor in this field.

So, does this acquisition make sense from Business Objects point of view? In my view this is clear cut. The company wants to further extend its penetration of the enterprise/business/corporate performance management space, which it entered with its acquisition of SRC last year, and it sees the addition of ABC/ABM as complementary technology that will help the company to push deeper into this market. Of course, there will be some integration to do but after the exemplary manner in which Business Objects achieved the integration of Crystal, I am sanguine about its capabilities with respect to ALG and SRC.

So, I think this is a very sensible move and puts Business Objects one up on Cognos, which is reliant on partners for this sort of functionality. However, just because I think this, it doesn't mean that everybody does. In particular, Cartesis seems to be very upset about it.

Now, regular readers will know that one of the things I abhor most about vendors is when they make adverse comments about their competitors (particularly when I don't agree with them anyway). Moreover, I have written about this on more than one occasion. So you can imagine my surprise at receiving a debunking email from Cartesis's PR agency that attacked this acquisition, stating that it didn't understand Business Objects' strategy and couldn't understand what Business Objects could possibly want with ALG. In effect, the email suggested that Business Objects should stick to the BI stuff (for which Cartesis conceded that it held Business Objects in high regard) that it's most well known for and leave performance management to the likes of Cartesis who know what they are doing.

Let's spell this out simply: if Cartesis is right then Business Objects has just blown a load of money and the company won't get any leverage out of the acquisition. In which case, that must be good for Cartesis. This, of course, suggests that Cartesis should applaud its rival's desire to waste money and it should therefore put out a congratulatory email to encourage Business Objects to pursue further fantasies that can only damage Business Objects' reputation while, by comparison, enhancing that of Cartesis.

But has Cartesis followed this line of logic? No. So what can we conclude? Actually, that this purchase scares Cartesis; that it doesn't like it; that it sees it as a threat. Which means that they are plain daft to draw attention to that fact. Of course, they may be able to pull the wool over some people's eyes but if they want to try this sort of stunt again in the future then they would do better to qualify me out.

Copyright © 2006, IT-Analysis.com

The Essential Guide to IT Transformation

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Mozilla keeps its Beard, hopes anti-gay marriage troubles are now over
Plenty on new CEO's todo list – starting with Firefox's slipping grasp
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.