The end of January saw our partners at SAP announce a major acquisition in the shape of CallidusCloud, a deal expected to be finalised by the middle of this year at an expected purchase price of $2.4 Billion.
So we’re talking big business and big money here then but what does the acquisition actually mean for SAP and could a mega-transaction like this actually promise benefits to the SMEs we work with every day?
California-based CallidusCloud are the recognised market-leaders in software products known stateside as “Lead-to-Money” applications. This is definitely a case of doing what it says on the tin because the CallidusCloud Lead-to-Money suite of applications are designed to unify front office functions, accelerate the sales process and increase customer retention.
SAP have a clear aim behind this purchase when it comes to their current range of business applications. Within the ERP and business management space SAP are clear market-leaders with offerings unmatched in terms of their functionalities, however the front office and customer relationship management have often been viewed as an area that has lagged behind for SAP.
The acquisition of CallidusCloud changes this. Not necessarily instantly of course, there will be a significant period of integration and adoption required for the full benefit to be felt (although this will certainly be smoothed by the fact CallidusCloud has been a partner of SAP for several years, based on a joint selling agreement). But as the front office power of the CallidusCloud systems are hooked up and absorbed in to SAP’s core solution offerings we’re going to see these business management solutions becoming truly powerful sales engines as well.
As SAP’s press release noted: “The combination of SAP’s assets with CallidusCloud’s will deliver the most complete, end-to-end, fully cloud-based ‘Lead-to-Cash’ offering.”
And SAP CEO Bill McDermott was also clearly excited by the prospect of what the deal could deliver when he stated in an interview on Bloomberg that “This one was too good to pass up, this is a company that helps us define this customer driven growth revolution….this completes us in a certain sense, in the CRM category.”
It’s quite a statement, especially in the tech field, to claim that any particular deal can complete a business’s capabilities although it will now be hard to identify a particular business technology area in which SAP does not have a market-leading solution to offer.
And what could this mean for our SME customers already taking advantage of the power of SAP Business One, as well as those to come? Well, the beauty of an application designed for SMEs but developed by a software giant like SAP is the benefit of trickle-down technology.
SAP Business One today has already grown to become a comprehensive business management system, with capabilities beyond those of enterprise-level systems just 5 or 10 years ago, by taking advantage of cutting edge technologies and functionalities that emerged in the upper reaches of the SAP software tree.
We expect this acquisition of CallidusCloud to promise much of the same and a subsequent revolution in the front office of those forward thinking SMEs running SAP is already something we’re hotly anticipating here at DCS.