Indigestion for SAP

Écrit par
Sara Driscoll
Sara Driscoll
Published: Oct 8, 2007
Updated: Feb 2, 2021
1 minute read
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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.

/zimages/4/28571.gifRead the full story on Channel Insider.com: Indigestion for SAP

Sara Driscoll

Sara Driscoll has over a decade of experience in journalism, starting at 16 with The Watford Observer. After earning a Journalism degree from Bournemouth University, she worked across major publishing houses, covering industry news, market trends, and in-depth analysis. She progressed rapidly, leading editorial teams and expanding publications across digital platforms, live events, and multimedia. With years spent shaping content strategies and providing expert commentary, she has built a career at the intersection of journalism, business insights, and media innovation.

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