SAP Buys Business Objects For $6.8 Billion





On Sunday, German software powerhouse SAP announced that it is buying Business Intelligence software provider Business Objects for $6.8 billion in cash. The news release can be found on SAP’s website.

This transaction further shows the consolidation in the Business Intelligence industry, and means that of the “Top 4″ in Business Intelligence software (Hyperion, Cognos, Business Objects, and MicroStrategy), only 2 (Cognos and MicroStrategy) remain independent. It’s interesting to see if either one of those players get acquired. Currently, the only big player that hasn’t made a move in this space is Microsoft, as both Oracle and SAP have made their moves.

The people hurt most by this deal are those who have come to rely on the Business Objects – Oracle partnership. The BO/Oracle relationship is expected to cool down considerably, and I would expect any partnership between the two to dissolve in the not-to-distant future. For clients relying on this combination, they should start looking for alternatives soon.

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