systematicHR

Perhaps this is in reaction to Oracles buying Hyperion.  I always thought that SAP’s Business Warehouse product was pretty good.  Then again, PeopleSoft EPM isn’t bad either, and Oracle felt the need to go out and continue their buying spree.

SAP AG has agreed to acquire software maker Business Objects SA in a tender offer valued at more than 4.8 billion euros ($6.8 billion), the companies said Sunday.

Under the terms of the agreement, SAP, the world’s largest maker of business software that helps companies do back-office work such as payroll, inventory management and accounting, will pay 42 euros ($59.35) per share in cash.

Business Objects will operate as a stand-alone business as part of the SAP Group, and Business Objects customers will gain the advantage of application alignment for business analytics, the companies said.

I’m all for great ERP system with robust functionality across multiple modules.  However, the spending spree that Oracle and SAP are on seems to be clearing the field of competitors.  Where a year ago, there were a good number of very strong best of breed analytics solutions in addition to the ERP vendors, now there is Cognos and a few runner up solutions with everything else owned by Oracle, SAP or Microsoft.  I personally think that the market and the ERP products were just fine where they were assuming continued R&D which is kind of a given.  Instead, I’m not rather unhappy with the marketplace.

Too much consolidation is not a good thing.  In an area like talent management where there are too many vendors, some thinning out is appropriate.  Not here however.  You already have Business Objects having swallowed Crystal a few years ago and I’m sure Hyperion made similar purchases.  When the capabilities of the acquirer are already strong, these moves seem to be simply to grab market share and not to increase capabilities.