|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.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Oct. 9, 2015 10:45 AM EDT Reads: 109
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...
Oct. 9, 2015 10:45 AM EDT Reads: 504
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Oct. 9, 2015 10:45 AM EDT Reads: 147
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
Oct. 9, 2015 10:31 AM EDT
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Oct. 9, 2015 10:30 AM EDT Reads: 147
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
Oct. 9, 2015 10:15 AM EDT Reads: 142
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 17th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity
Oct. 9, 2015 10:00 AM EDT Reads: 486
In his session at DevOps Summit, Bryan Cantrill, CTO at Joyent, will demonstrate a third path: containers on multi-tenant bare metal that maximizes performance, security, and networking connectivity.
Oct. 9, 2015 10:00 AM EDT Reads: 158
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Oct. 9, 2015 10:00 AM EDT Reads: 287
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
Oct. 9, 2015 10:00 AM EDT Reads: 770
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Oct. 9, 2015 10:00 AM EDT Reads: 151
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction....
Oct. 9, 2015 10:00 AM EDT Reads: 232
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
Oct. 9, 2015 10:00 AM EDT Reads: 1,257
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
Oct. 9, 2015 10:00 AM EDT Reads: 225
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Oct. 9, 2015 10:00 AM EDT Reads: 220