Indigestion for SAP

By Sara Driscoll  |  Posted 2007-10-08 Print this article Print

The integration of technology and processes will be difficult as SAP digests Business Objects acquisition, analysts warn.

Warnings of integration challenges and technology conflicts have already begun, as analysts warn SAPs $6.78 billion acquisition of Business Objects will be hard to swallow. The deal, announced early Oct. 8, will combine SAPs business analytics with Business Objects BI (business intelligence) technology. It is SAPs largest to date.
Judith Hurwitz, CEO at Hurwitz Associates, said, "SAP clearly understands that customers need to be able to leverage their enterprise data to make better business decisions. Therefore, it is not surprising that SAP would look to a company like Business Objects for their BI and overall analytical software capabilities."
However, she added, "A lot of the revenue from companies like Business Objects comes from renewal of existing licenses. Once a company has hundreds of users trained in the use of [its] software, migration is very unlikely. The deal does seem expensive. The key question is what does SAP really gain that couldnt have been gained from a tight partnership?" David Bradshaw, principal analyst at Ovum, also said the firms existing, joint working arrangement would be put at risk, alongside SAPs other vendor agreements. Read the full story on Channel Indigestion for SAP
Sara Driscoll began her journalism career at 16 years old on her local newspaper, The Watford Observer. Working part time, she covered a range of beats. Leaving to complete her Journalism Degree at Bournemouth University, UK, Sara then went on to graduate and work for Emap. She began as a reporter on APR, Emap's construction title, being promoted to senior reporter with a year.Sara then joined VNU Business Publications as Deputy News Editor on CRN, the weekly trade title for channel players. She covered industry/business news from vendors, distributors and resellers, product announcements, partner announcements as well as market and trend analysis, research and in depth articles to predict up and coming trends in the sector. She was promoted within a year to News Editor, a year later to Deputy Editor and the following year became Editor. Sara remained editor of CRN for three years, launching the magazine on new platforms including CRN TV and eBooks, as well as several magazine and web site redesigns. She was called on for expert industry comment from various publications including appearing on live BBC news programs. Sara joined Ziff Davis Enterprise as Editor of eWeek Channel Insider. She runs the title in all formats – online up to the minute news, newsletters, emails alerts and events. She also manages the brand of Channel Insider in all formats - events, shows, awards, panel debates and roundtables.Sara can be reached

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