Welcome!

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Agile Computing, Artificial Intelligence, @DXWorldExpo

@CloudExpo: Article

SAP to Buy E-Commerce Firm

SAP means to connect the front-end e-commerce engine to back-end systems and then manage the resulting transactional data

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.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.