More on a Possible Business Objects Buy – Part I

Is Business Objects Up for Sale?
September 17, 2007
More on a Possible Business Objects Buy – Part II
September 20, 2007
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More on a Possible Business Objects Buy – Part I

I rambled long enough in my answer to the comment that Vincent McBurney left on my post Is Business Objects Up for Sale? that I figured I should just add it here as a regular post. Thank you Vincent for the feedback.

Vincent said:

I rate SAP low as they just signed a multi year deal with
Informatica and IBM low as they have too much overlap with the data integration
tools. There are much better BI options for these two. I give Microsoft almost
no chance as they are building out cheaper BI tools.

I would rate Oracle a good chance as it would give them a new
set of BI customers and a heterogeneous data integration stack that complements
the ELT solutions.

I rate HP the best chance of all as it would give them an end to
end Data Warehouse suite to counter offerings from Oracle and IBM.

My thoughts on this:

SAP: I was surprised to hear that the rumor was that SAP was
the leading candidate to acquire BOBJ. It is out of character for them to do an
acquisition this big. It also would get them out of their application "comfort" zone. It also would not really advance their push into the SMB (small to medium
size business) market. BUT they are fierce competitors with Oracle and intense
(macho?!) competition, like jealousy, may make them do things they otherwise would not.

IBM: There is an overlap with DataStage and Data Integrator
technically, but maybe not from a marketing perspective. Data Integrator sales
are small in a relative sense to BOBJ overall sales and to DataStage. BOBJ
bought Acta and integrated it into their product line (a very good product to
begin with and even better now) but they might have been too late to the dance
for many potential customers. By the time Data Integrator was ready for its
customers many of them had already standardized on Informatica or Ascential/IBM.
You can transition the best aspects of Data Integrator, such as the metadata
management, into DataStage and MetaStage products. ETL sales would not be a
roadblock to this potential merger.

Two questions they need to ask themselves. First, do you want a
best-in-class BI software package and associated Services revenue versus being
independent and its associated Services revenue? They crossed the line with
best-in-class ETL, so best-in-class BI is a logical next step. Second, if you
are going to buy a BI software vendor, should you buy Business Objects, Cognos
(COGN), MicroStrategy (MSTR) or someone else? Any other suggestions?

Oracle: They already have Oracle Warehouse Builder (OWB) and
Oracle Data Integrator (ODI), formerly Sunopsis, so one more overlapping tool is
fine?! They would produce a roadmap and, just like with IBM the ETL tool
overlap should not deter a sale.

Finally, it is not just about technology. It also about
revenue and profit from sales, maintenance, professional services; the size of
the customer base; the quantity and quality of the sales and engineering
organizations; and, the negotiations and the price.

More business intelligence or performance management
companies are likely to be acquired. Stay tuned.

 

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