SAP just did a big acquisition, along with a little head fake.
While the announcement by SAP, the German enterprise software
company, said this was a deal about online marketing, in fact, it’s part
of a broader effort by many companies to reshape retail sales.
SAP
announced Wednesday
that it was buying Hybris, a Swiss e-commerce software company. The
price was not disclosed, but someone familiar with the deal who was not
authorized to speak on the record, said SAP paid “somewhat less than $1
billion” for hybris.
The deal follows Tuesday’s announcement by
Salesforce.com that it was acquiring ExactTarget, an online marketing services company, for close to $2.5 billion.
Not surprisingly, many industry analysts wanted to make a connection between the two deals.
Stringer/Germany/Reuters Bill McDermott, SAP’s co-chief executive.
That link was reinforced when Bill McDermott, SAP’s co-chief
executive, took a couple of shots at Salesforce during the conference
call about the Hybris deal, saying Salesforce had bought an
old-fashioned e-mail marketing company (yes, that’s old-fashioned now).
Gartner, an industry research firm, recently announced that Salesforce
had replaced SAP as the leading vendor of customer relationship
management software, giving Mr. McDermott reason to want to get even.
The Salesforce deal, however, is part of
a larger plan
by Salesforce to blend advertising, marketing and sales. Marc Benioff,
the chief executive of Salesforce, has said that technologies like cloud
computing and social media increasingly break down the distinctions
between those things.
This is particularly true for customer relationship management of
sales from one company to another, where complicated specs and contracts
mean e-mail matters more.
SAP is going after consumers as much as businesses with Hybris and
hoping to use the data from online commerce for Big Data marketing, and
eventually, things like planning inventory and manufacturing. That is a
much bigger goal, and ties into both SAP’s roots in enterprise resource
planning software and the online data analysis of its HANA platform.
“You can read this purchase as us being serious” about customer
relationship management,” said James Dever, a spokesman for SAP. “But
it’s deeper than that. This touches a company’s back end transactional
data,” or information about things like inventory.
One feature of Hybris’s software is that it allows customers to open
an online shopping cart on one computer and then adjust an order later
on another computer before closing a sale. Using its HANA platform, SAP
hopes to let sellers see behaviors, then offer deals or companion offers
before a sale is completed.
Eventually, companies may be able to use that overall information and
data analysis to figure out faster how much of a product they need to
make, store or sell quickly. The product could also help in planning
what to stock in retail stores.
In some ways, the SAP deal is closer to last year’s move by NetSuite, another SAP rival, to offer online
commerce services.
While that business has been slow to emerge, NetSuite recently
announced some significant deals involving blended online and
traditional brick and mortar sales.
“The big picture is that consumers want to connect with companies on a
personal, individualized basis, online and offline,” Zach Nelson, the
chief executive of NetSuite, said.
In an even bigger picture, deals like this are part of the broader
move to create the immediacy and data-led insight (or, if you prefer,
cookie-based spying) of online retail with the high-touch experience of
physical stores.
Amazon.com moved early into online skills and has edged into the
physical world by offering fast delivery of goods. Apple has gone
farther, designing stores that in many ways embody its online sales
presence, from the minimalist look to the absence of formal checkout
kiosks.
If SAP can build out Hybris, it could blur further the barriers
between ads, sales and marketing. And more companies could break down
barriers between things online and off.