MIS2101 Section 702 – Amy Lavin – Spring 2014

SAP Invades Silicon Valley Via Acquisitions

German software giant SAP (SAP), the 41-year-old maker of financial and supply-chain software, has been slow to shift to cloud computing and has struggled for years to catch up to U.S. competitors such as Oracle (ORCL) and Salesforce.com(CRM). Among other things, it’s broken some of its brightest engineers into startup-like teams far from its main campuses. While waiting for them to spawn new products, the company is doubling down on plan B, for “buyout.”


1) Do you think that once this wave of buyouts subsides, one ERP company will dominate with superior cloud computing capabilities? Or are these ERP giants just trying to stay on even ground with one another?
2) When SAP is consuming tech companies in the silicon valley do you think they are more concerned with making sure they can create the best product, or keeping the best technology from their competitors?
3)Do you think the rush to move SAP to the cloud will create a better user experience or a partially finished system that will create problems for users?

2 Responses to SAP Invades Silicon Valley Via Acquisitions

  • 1. I think that this massive buyout is just trying to level the playing field and for SAP to stay to relevant. Clearly they have been behind the ball in going to cloud based computing. With Oracle and Salesforce being such powerhouses they need to stay relevant and balance the power.
    2. I think that SAP is much more concerned with their business share of the market. I see similarities to Facebook in that their starting to phase out but previously have been successful so they have tons of money to throw on other people being on the brink of exploding commercially.
    3.I think their will be a better user experience because they definitely will create their own mold and a hybrid cloud. They can disseminate the information to keep the data that needs to remain in the on premise situations. Tag teamed with up to date cloud information that has a seamless interface.

  • Supply Chain News: IBM, Indian Auto Groups Launch Ambitious Connectivity Hub to Integrate OEMs, Parts Suppliers.

    Published April 2, 2014


    While there are always individual company leaders which drive connectivity for their own benefits, rarely if ever has an entire sector really tried to address the issue, other than perhaps developing electronic communication standards, such as the VICS EDI standards in consumer goods to retail.

    After reading this article

    1.Do you think lack of connectivity and integration is a key limitation in the progress of the supply chain in any industry sector, from consumer goods to health care?

    2.How do companies such as IBM improve their Supply Chain Management (SCM) system using the new system and do you think it will be industry standard?

    3.How will developing new electronic communication standards benefit industries comparing to present system?

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