Boy did second round negotiations happen under the radar screen on this one!
As I said back in October, Larry Ellison was NOT going to let this one go!
This morning according to the Wall Street Journal BEA accepted a bid from Oracle for $19.375. The area of middleware is HOT.
Oracle needs this acquisition to maintain an edge in middleware space.
The promise of SaaS and SOA in ERP architecture could revolutionize ERP as we know it.
Middleware will continue to be an area of intense focus in 2008 and in the specific areas of …
First, Business Intelligence…
On the supplier side, the fact that billions have been spent in the acquisition of Cognos, Hyperion and Business Objects by IBM, Oracle and SAP respectively should make it crystal clear the tier 1 sees the writing on the wall.
On the customer side, according to a recent discussion between Tony Friscia and John Hagerty of AMR Research, “getting more out of systems, getting better information for decision making is the number one strategic investment area for companies”. They further commented that this focus will remain regardless of where the economy goes … I would agree.
My organization is no different with strategic emphasis on BI. I think that it is safe to say that more companies have an ERP system than ever before… Now let’s make sense out of the data and make better decisions!
This one is not quite the, “Here it is 1,2,3” as Business Intelligence.
While on the supplier side, marketing alchemy is alive and well AND market consolidation is seriously underway.
The Oracle and BEA deal fell flat, but serious money was spent in this space by IBM acquiring WebFly, DataPower and Bowstreet, HP acquired Mercury, there are others …
There is no question that the investment dollars are there.
I just don’t yet see the value proposition materialize for the average ERP system customer. It sounds good, but have yet to see it materialize.
SAP, Oracle, IBM, HP, Infor
All is quiet for the moment, but 2008 looks to be a lively year in this space.
And Finally … ERP and Web 2.0 – A Parting Note
Talk about the ultimate oxymoron, the marriage however of the two could provide strategic advantage in many different ways. There are hosted ERP systems utilizing SaaS up and running now, so this is not vaporware.
Until next time…