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Posted by Boris Evelson on October 7, 2007
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:
Issues and challenges:
What does it mean to the rest of the market? Remaining pureplay BI vendors (Cognos, IBI, Microstrategy, SAS, Actuate) will most probably treat this as a non-event, and will possibly even try to spin a positive story - the less independent BI vendors left on the market, the more opportunities they have to go after customers who want stack independence. As far as recommendations to enterprise BI users - I say take quick advantage of uncertainties in the product roadmap, lock down maintenance contracts and sweetheart deals while you can to get a good deal from BOBJ before SAP really takes over.
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