Business Objects to be acquired by SAP
Posted by Venkatakrishnan J on October 8, 2007
It looks like the rumor mills that have been going around for some time is indeed true. Atlast, BOBJ would be acquired by SAP. I picked this up from Mark’s Blog here. According to me, there are some positives as well as negatives which is true for any acquisition i believe. One of the strange things about this possible acquisition is, it is as expected. None of Oracle’s acquisitions were. For quite some time there have been news that BOBJ had hired Goldman Sachs for finding out possible acquirers, if i can put it that way. Following are some of my thoughts
1. Good for the BI space in general as we can expect both Oracle and SAP to bring out the best in the BI tools as they pan out for both Technology and Applications space.
2. SAP can leverage BOBJ to get a foothold into Technology space.
3. Good for BOBJ since SAP can afford to invest more.
1. Nobody knows whether this acquisition has been completely thought through considering the timing of the acquisition. This is immediately after BOBJ had put itself up for grabs.
2. Nobody knows what would happen to the acquisitions done by BOBJ. Since, currently all these acquisitions are not yet integrated into BOBJ.
3. It would take time to integrate BOBJ with SAP since acquisitions are new to SAP.
4. What would happen to Outlook Soft that was acquired by SAP since BOBJ has similar toolsets.
5. What would happen to the custom BI offerings from SAP? These cannot be sold seperately since they work only with SAP.
6. SAP still does not have a complete EPM solution.
More negatives come to my mind since i have been used to the Oracle’s way of acquisitions. Others can correct me if i am wrong here. But poor Cognos. It is the only one that is left behind. Lets hope there is someone out there to buy it. Maybe Microsoft or IBM? But still, interesting times ahead indeed!!