Feeds

SAP splashes out on BO

€4.8bn buys software firm and strategy change

Secure remote control for conventional and virtual desktops

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." ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.