Playing Monopoly With Enterprise Software: Will SAP And BOBJ Build Hotels On Broadway Or Go To Jail?

by Boris Evelson.

SAP and Business Objects today announced that the companies have reached an agreement for SAP to acquire Business Objects for approximate sum of slightly above 4.8 billion euro. Forrester has been predicting this continued market consolidation for some time — see our Microsoft Buys Proclarity and Oracle Buys Hyperion research documents, as well as a couple of my earlier blogs on the subject. SAP must be feeling a lot of pain and pressure to make such a significant move — SAP executives have been telling the world for years that they prefer small, tuck-in acquisitions. The deal though does make a lot of sense. In one transaction SAP gets the best of breed set of BI tools with full BI stack capabilities, everything from data integration tools like ETL and data quality to reporting, OLAP, dashboards, text analytics and many others. This deal has multiple implications to enterprise software users, especially for those 30-40% from the common SAP/BOBJ customer base:

Positive implications:

  • Business Objects users will gain from SAP’s domain expertise. In the era of increasingly commoditized products and services, domain expertise and industry specific solutions are key differentiating factors for any enterprise software vendor.
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