Feeds

SAP splashes out on BO

€4.8bn buys software firm and strategy change

Internet Security Threat Report 2014

Updated: SAP is offering €4.8bn (£3.3bn) for Business Objects - a strategy change for the German company which usually develops technology inhouse rather than making big purchases.

The move is also a boost for the business intelligence market.

Business Objects (BO) will continue to function as a separate company, but will share execs and other resources. BO's CEO John Schwartz will keep his job as well as taking a seat on the SAP board.

SAP is already changing its strategy by moving into software for smaller businesses and has struggled to shift to "on-demand software" - where users access software via a website.

The companies hope the deal will close in the first quarter of 2008 and add to earnings by 2009.

The official statement is here.

Analysts from Ovum said part of the reason for the deal was a response to Oracle's purchase of Hyperion but also a way to squeeze more cash out of existing customers.

David Bradshaw, Principal Analyst and Helena Schwenk, Senior Analyst at Ovum, said: "Large suppliers are attracting ever larger share of customer spend, as customers try to reduce the number of suppliers to bring some order to their IT buying. In some accounts, the purchase might turn SAP from being an 'also ran' into a strategic supplier. However, our experience is that SAP tends to be either a strategic supplier to its customers, or to have such a small footprint that it is barely on the corporate radar screen.

"But a much more important and longer term objective is what we call 'operationalising' the intelligence from the business data, and here Business Objects brings great breadth of BI and performance management capabilities to SAP. Managing processes and transactions efficiently is only half the challenge that the typical business faces - the other half (at least) is trying to decide what the smart thing is to do." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Sway: Microsoft's new Office app doesn't have an Undo function
Content aggregation, meet the workplace ... oh
Sign off my IT project or I’ll PHONE your MUM
Honestly, it’s a piece of piss
Return of the Jedi – Apache reclaims web server crown
.london, .hamburg and .公司 - that's .com in Chinese - storm the web server charts
NetWare sales revive in China thanks to that man Snowden
If it ain't Microsoft, it's in fashion behind the Great Firewall
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.