SAP has addressed a major gap in its business planning performance management offerings with the acquisition of Outlooksoft today. The internally-developed SAP offerings known as SEM had seen limited traction among its customer base do to usability and complexity issues. SAP has been vulnerable to competitors (e.g., Hyperion, Cognos), particularly in the planning and budgeting domain.
Outlooksoft’s offering, by contrast, features a native Excel UI that appeals to finance and business users, and has integrated capabilities for planning, financial consolidations, and business performance analytics. It has seen good traction as a best-of-breed offering, with a base of approximately 700 customers. Its newest release (5.0) incorporates SOA and Web 2.0 technologies, making it compatible with SAP’s technology directions. Also, Outlooksoft has begun to move away from its sole dependency on the Microsoft BI platform.
SAP's annual Americas user conference was held last week (April 23-25), with impressive attendance of approximately 14,000. The abrupt departure of Shai Agassi a few weeks prior to the event was well covered, as Hasso Plattner stepped in to handle the technical vision keynote slot. A key message of the event was progress in adoption of SAP's NetWeaver platform and the latest release of the ERP suite, renamed ERP 6.0 from mySAP ERP 2005. ERP 6.0 adoption was announced to be approximately 2,600 to date, but upgrades from the older 4.6C and 4.7 versions continue to be a challenge for customers. SAP is looking to have 75% of its ERP base upgraded by mid-2008. Besides relief from rising support costs under the 5-1-2 maintenance plan, customers who upgrade to 6.0 can take advantage of a series of forthcoming enhancement packs as incremental add-ons (a strategy reminiscent of Oracle's family pack releases).