SAP restarts software industry merger battle for cloud Computing

December 4, SAP announced that it will buy successfactors 3.4 billion dollars in cash to strengthen its cloud computing products. To count Sybase, this is the second largest acquisition in SAP's history, indicating that SAP will further strengthen the three major business of "cloud computing", "mobile apps", "Memory Computing", and take this opportunity to intensify the cloud-computing product line to overtake Oracle, the direct competitor. To achieve this goal, SAP may continue to carry out a series of mergers and acquisitions on cloud computing.

Mergers and acquisitions--from behind closed doors to taking home the long

It is reported that SAP expects the trade fair to end in the quarter of 2012 year. SAP also said in a statement that the acquisition would significantly add momentum to SAP as a cloud program, platform and infrastructure provider. SAP, which has always revered original technology, is "dismissive" of Oracle's obsession with mergers and acquisitions. The current move suggests that SAP has realised that "behind closed doors" is not as good as taking home. "SAP is very much in need of this step, which will give sap greater resilience in cloud computing," said Ray Wang, analyst at Constellation, San Francisco, Rey Wang. ”

In 2009, Leo Apotheker, the CEO of SAP, told investors that the company's original technology was "far better than" Oracle, which was "not as effective through acquisitions". SAP was still at the stage of reducing costs. Soon after, SAP co-founder Haso Pratna Hasso Plattner decided to dispense with Apotheker's position and develop product innovation.

Then McDermott, the successor, McDermott and Snabe (Jim Hagemann Snabe) began a big merger, and has so far spent more than 9 billion of dollars on two large-scale mergers and acquisitions. The first was to buy Sybase 5.8 billion dollars in 2010, and the second was the 3.4 billion dollar takeover of SuccessFactors. As Haso has said, SAP will be the oldest and most successful software provider in the world by 2012, and will gain a reputation comparable to IBM's in the 40 years since its inception. To win such a reputation, SAP must defeat a group of aggressive rivals. Mergers and acquisitions are undoubtedly a quicker and more direct way.

Shuffle--from one-stop service to cloud computing strategy

According to Gartner, the 2011 cloud-based SaaS Market is $1.23 billion trillion and is expected to reach $17.3 billion in 2013, up 41% per cent year-on-year. International giants such as Oracle, Apple, salesforcecom, IBM, Amazon, Dell and Microsoft, including SAP, are actively promoting cloud computing services.

Cloud computing will speed up the software industry's shuffle, and SAP's most direct competitor is Oracle. At the Oracle Global Congress in San Francisco in October, Ellison, founder of the company, said the SAP product "looks like the classic of the 60." This is no doubt a denial of current product innovation in SAP, but it should also be the ridicule of "ridicule" more determined by SAP to buy cloud computing manufacturers decision.

SAP has been emphasizing its one-stop service before, but since cloud computing has been fiercely scrambled by the Giants, SAP has shifted to emphasizing its three main lines, cloud computing, memory computing, mobile apps. and has also been emphasizing the importance of cloud computing, while introducing a range of cloud computing products and solutions. But the cloud strategy of SAP is perceived by the market as lagging behind its rivals. It is understood that SAP's profit from cloud computing accounts for only 2% of the company's overall profit.

So SAP chose to buy SuccessFactors to catch Oracle in the cloud computing market. From now on to increase the investment in cloud computing to better meet user needs. Voldemort, SAP's CEO, said that the cloud strategy would be an important future for the company and that SuccessFactors had superior technology, so SAP was looking forward to its effectiveness.

Conjecture--sap continued mergers and acquisitions in cloud computing

Oracle has been increasing its business through mergers and acquisitions, and has spent 42 billion of dollars on acquisitions since 2005. SAP may continue to expand in cloud computing after completing a takeover of SuccessFactors, but it should not be a big deal.

In fact, SAP began to transform the strategy, a large acquisition, and not only in the acquisition of SuccessFactors. As recently as November 1, SAP has just completed its acquisition of the commercial social networking site Crossgate, with Crossgate products, SAP will provide customers with a full range of 360 degrees, can be fully deployed in the cloud services.

Brendan Barnicle, analyst Brendan Bannick of Pacific Atlas Securities, said SAP may need to start more cloud-computing mergers. such as the acquisition of Concur technologies such a cost management company or Ariba such as procurement management company. Seekingalpha, the US technology blog, said SAP was looking for more software to buy, with 5 cloud computing software stocks currently a better takeover opportunity:

First, Salesforce, customer relationship management software as a service (SaaS) leader;

Second, Taleo provides talent management solutions through SaaS;

Third, Concur Technologies provides SaaS services for cost and journey management software;

IV, ARIBA, provides SaaS solutions for expenditure management software, contract management software, and financial solutions;

V, NetSuite, provides cloud-based enterprise resource planning (ERP) software.

(Responsible editor: The good of the Legacy)