|By Maureen O'Gara||
|June 10, 2013 08:00 AM EDT||
SAP is buying hybris, a 16-year-old $85 million-a-year Swiss e-commerce company, expecting to deliver the next-generation e-commerce platform for on-premise and cloud deployment.
It claims the purchase, which many have expected for a long time, puts it at the leading edge of the consumer economy, raising the stakes in customer relationship management (CRM) and defining the next-generation customer experience.
Terms weren't disclosed, but All Things Digital thinks the deal is costing SAP $1.2 billion-$1.5 billion.
hybris just got $30 million from the VCs in March including Meritech Capital Partners and Greylock Israel. Its majority investor is Huntsman Gay Global Capital (HGGC), a private investment firm based in Palo Alto, California.
Forrester Research thinks these guys and their controlling interest dissuades hybris from going public and pushed it into SAP's arms instead.
Forrester also thinks SAP made the move now because its Web Channel Experience Management was way behind the market; because hybris has been treading on SAP's traditional ERP turf; and because SAP had a gaping hole in its portfolio compared to Oracle and IBM.
Forrester says, "With this acquisition, the enterprise commerce technology landscape is now dominated by four large software companies: SAP, IBM, Oracle and eBay. There are other smaller players, notably: Demandware, Digital River and Intershop, all of which have long been publically traded. The acquisition of hybris brings to a close a multibillion-dollar, three-year spell of intensive M&A and IPO activity in the enterprise commerce technology space. There will be future acquisitions for sure, but there are few independent vendors left now. The enterprise commerce space has entered a new phase of maturity and is now firmly entrenched as a strategically key product line alongside ERP and CRM."
The total value of the e-commerce technology market is estimated at $37 billion.
The consumer-facing widgetry is supposed to reinforce SAP's e-commerce applications and counter market share gains made by Salesforce. SAP's sales from CRM software was up just 0.1% last year, putting it behind Salesforce which grew 26% according to Gartner.
SAP means to connect the front-end e-commerce engine to back-end systems like inventory management and applications managing sales accounts, marketing and social engagement and then manage the resulting transactional data in other systems.
SAP will be going after folks interested in multiple delivery channels, devices and touch points. The combination of its enterprise solutions and hybris' omni-channel commerce solutions is supposed to offer the enterprise the enhanced data and tools needed to optimize margins and customer loyalty.
SAP said, "Today's consumers and businesses demand a seamless brand and shopping experience across all channels. Big Data, cloud and social technologies only heighten demand for the innovative commerce solutions needed to manage consistent customer engagement. Growing at more than twice the rate of the retail industry, e-commerce is increasingly recognized as a critical capability in identifying, winning and growing profitable customer relationships."
hybris will keep its current management led by CEO Ariel Lüdi and president and co-founder Carsten Thoma and remain standalone - which suggests to Forrester that there will be no forced dependencies.
SAP already has Ariba to facilitate transactions between businesses and it plans to integrate its HANA in-memory database technology with the service so clients can find and compare what they want. It also has the Jam social software platform
Actually everything SAP's got is ultimately supposed to be integrated with HANA and its analytics.
Besides Salesforce, SAP will be up against IBM and Oracle. hybris competes with IBM's WebSphere Commerce Suite and Oracle's Commerce Suite. NetSuite also just said it's getting into e-commerce and has a deal with Williams Sonoma.
The deal theoretically makes SAP number three in the market behind IBM and Oracle.
The company is based in the pretty lake-side town of Zug, Switzerland. It has 650 employees and its main offices are in Munich and Montreal. It has 500 corporate customers including GE, P&G and Ericsson.
hybris is supposed to be the world's fastest growing e-commerce software company although some Chinese firms might dispute that statement.
Its omni-channel commerce platform incorporates web, mobile, call center and store solutions. SAP says it helps businesses of all sizes on every continent sell more goods, services and digital content through every touch point, channel and device. Its solutions provide a single view of customers, products and orders across multiple demand and delivery channels through state-of-the-art master data management and unified commerce processes.
SAP is supposed to expand its scope, scale and power.
The deal should close in Q3.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Jan. 31, 2015 01:30 PM EST Reads: 2,270
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Jan. 31, 2015 01:15 PM EST Reads: 2,674
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of present...
Jan. 31, 2015 01:00 PM EST Reads: 2,041
In this scenarios approach Joe Thykattil, Technology Architect & Sales at TimeWarner / Navisite, presented examples that will allow business-savvy professionals to make informed decisions based on a sound business model. This model covered the technology options in detail as well as a financial analysis. The TCO (Total Cost of Ownership) and ROI (Return on Investment) demonstrated how to start, develop and formulate a business case that will allow both small and large scale projects to achieve...
Jan. 31, 2015 01:00 PM EST Reads: 2,098
IBM has announced a new strategic technology services agreement with Anthem, Inc., a health benefits company in the U.S. IBM has been selected to provide operational services for Anthem's mainframe and data center server and storage infrastructure for the next five years. Among the benefits of the relationship, Anthem has the ability to leverage IBM Cloud solutions that will help increase the ease, availability and speed of adding infrastructure to support new business requirements.
Jan. 31, 2015 01:00 PM EST Reads: 1,544
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Jan. 31, 2015 01:00 PM EST Reads: 1,650
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, explored the synergies in these two approaches, with practical tips, techniques, research data, wa...
Jan. 31, 2015 01:00 PM EST Reads: 3,228
Software AG and Wipro Ltd. have announced a joint solution platform for streaming analytics that provides real-time actionable intelligence for the Internet of Things (IoT) market. “The key to successfully addressing the IoT market is the ability to rapidly build and evolve apps that tap into, analyze and make smart decisions on fast, big data”, said John Bates, Global Head of Industry Solutions and CMO, Software AG. To address the huge market potential created by streaming analytics in conj...
Jan. 31, 2015 01:00 PM EST Reads: 1,127
Appcore deploys cloud for service providers based on the Apache Cloud set. In this demo at 15th Cloud Expo, Nate Gordon, Director of Technology at Appcore, shows their new product that's coming out in January - Appcore Atlas, which is focused on deploying private clouds based on CloudStack in 15 minutes or less. Our upcoming June 9-11, 2015, event in New York City will present a total of 10 simultaneous tracks (the largest conference content in the world) by an all-star faculty, over three days...
Jan. 31, 2015 01:00 PM EST Reads: 1,605
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubN...
Jan. 31, 2015 12:45 PM EST Reads: 1,770
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise be...
Jan. 31, 2015 12:45 PM EST Reads: 1,949
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Jan. 31, 2015 12:45 PM EST Reads: 2,570
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
Jan. 31, 2015 12:15 PM EST Reads: 1,984
DevOps means different things to different people. Qubell defines DevOps as the ability for the developer teams to do what they need to do to have this level of self-service. At DevOps Summit, Stan Klimoff, CTO of Qubell, demos the enterprise DevOps platform.
Jan. 31, 2015 12:15 PM EST Reads: 1,369
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
Jan. 31, 2015 12:00 PM EST Reads: 892