SAP Restocks Its Cloud-Zoo With Ariba

Holger Kisker

SAP Turns To Acquisitions For Cloud Innovations

Just three months after SAP acquired SuccessFactors, a cloud leader for human capital management solutions, for $3.4 billion, it has now announced the acquisition of Ariba, a cloud leader for eProcurement solutions, for another $4.3 billion. Now, $7.7 billion is a lot of money to spend in a short amount of time on two companies that hardly make any profit. But it’s all for the cloud, which means it’s for the future business opportunity in cloud computing services. So far, so good; SAP has invested and acquired quite a number of cloud companies over the past years: Frictionless, Clear Standards, Crossgate, etc. The difference in this most recent acquisition is the big overlap with existing solutions and internal R&D.

Following the first wave of cloud acquisitions, SAP was sitting amid a zoo of cloud solutions, all based on different platforms: ePurchasing, CRM-OnDemand, BI-OnDemand, Carbon Impact, ByDesign, Streamwork . . . They all used very different technology, resulting in big integration and scale challenges behind the scenes. The market welcomed with open arms SAP’s announcement 1.5 years ago that it would consolidate its cloud strategy on the new NetWeaver platform for both ABAP- and Java-based cloud solutions.

Read more

SAP Middleware Directions: More Open Source, In-Memory Stuff

John R. Rymer

At the 15 March press and analyst Q&A by SAP co-CEOs Jim Hagemann Snabe and Bill McDermott, new middleware boss Vishal Sikka shed more light on the company's intentions for NetWeaver. Many of SAP's business applications customers use NetWeaver, both as a foundation for SAP's applications and to extend those applications using integration, portals, and custom developed apps. For about a year, the question has been how much additional investment SAP will put into NetWeaver.

Sikka made two comments that indicate how he's thinking about the NetWeaver portfolio.

1. In response to my question about whether SAP is concerned that Oracle's ownership of Java will put it at a disadvantage, Sikka started by highlighting SAP's work on Java performance, but then noted the availability of good open-source Java software to support the requirements of SAP customers.

Read more