Commenting on the deal, Carter Lusher, chief IT analyst at Ovum,says “This acquisition is less about Ariba’s global trading network than a “talent grab” about the business issues of cloud computing and technical insights on developing applications for the cloud. However, this acquisition has many other motivations as well. These include marketplace factors like acquiring customers and revenue stream and moving into adjacent markets in addition to building block factors like sales team headcount, technology R&D talent, and filling a product gap.”
FSN is running a discussion about SAP and the Cloud in its Linkedin discussion Group which you can find here
“This is a logical step for SAP as it needs to accelerate its move into the cloud. This acquisition is consistent with SAP’s overall M&A strategy and complements the SuccessFactors acquisition in December – providing greater depth of products, executives, and tech talent for the cloud. For Ariba, it’s unlikely the talent, technology and product will be cut. Instead, I expect SAP will invest heavily in Ariba’s R&D. While there is no immediate impact on SAP’s competitors, there could be a need for concern should SAP successfully accelerates its move into the cloud.
“For now, though, it should be business as usual. SAP has a relatively short track record of acquisitions, but those it has completed has resulted in investment for the acquired company. So there should be no concern over the viability of the product. Customers of SAP and Ariba should not see this as anything that impacts their installed base or procurement plans.”