News Analysis - SAP Gets Database and Mobility From Sybase Marking the Start of an Acquisitions Race

Author(s): Gord Harrison

SAP has announced that it is acquiring Sybase for $5.8 positioning them to compete against Oracle in the database and mobile applications markets.

"SAP needs to catch up with Oracle and Sybase is the ideal target." said George Goodall, Senior Research Analyst, Info-Tech Research Group. "SAP is making a bet on mobile but the deal also includes a very strong hedge. Sybase and SAP have already been successful in enabling SAP's core applications on mobile devices, and SAP is very bullish on the future of mobile. Sybase also brings a very capable database, particularly for information-intensive processes requiring in-memory deployments. Overall, Sybase will help SAP to keep Oracle out of their deals."

While SAP spent most of last year digesting its acquisition of Business Objects, its management team stated the company wouldn't be making any large acquisitions any time soon. But times have changed and the battle with Oracle is heating up. This event could mark the start of a series of acquisitions between the two companies.

"SAP is changing its strategy. It needs to increase functionality to compete against Oracle. And a corner of the University of Waterloo campus may reveal the key to this strategy,” said Goodall. “From one point you can almost see the offices of three companies: RIM, OpenText, and the iAnywhere division of Sybase. The combination of content and mobility is a powerful driver for the future of applications providers and Waterloo is at the center of it all."