SAP buys Business Objects

This one's all over the financial press, so I won't bother with any links right now. But it's worth asking what's really driving this. As lots of people have observed, it's a pretty dramatic strategic turnaround for SAP - especially on the heels of the Business ByDesign product announcement (which seemed to underscore their internal-growth plan).

So are they just playing catch-up to Larry Ellison? Or is it a deeper problem? The market expects some pretty big revenue numbers from SAP, and there aren't but so many $100MM software sales out there to be had. OK, so they'll launch the ByDesign midmarket play, but sheesh, that's a lot of volume they'll need to generate.

Maybe cheaper just to buy the revenue.

So, will they end up buying Infor eventually, as AMR's Bruce Richardson and others hasve suggested? I was skeptical, but less so now. Haven't seen that S-1 filing yet. Just think of all the trees we could save by just fast-forwarding straight to that deal.

Burp! That little piece of Syteline tastes like a bad mortgage!

In an interview with Managing Automation, Infor CEO Jim Schaper says they're going to take a little breather from gobbling up software companies. Sadly, it seems the formerly voracious PEGs who funded the takeover spree until now are now worried about the overall state of the debt markets.

It's not fair! Just because Capital One sent all those credit card applications to unemployed people, that doesn't mean we should stop rounding up ERP corpses! What's an ERP graveyard without fresh carrion? :(

Oh well. Schaper does say Infor will concentrate on "preparing the company for an initial public stock offering, which could take place within the next 12 months." That's when the PEGs will cash out, of course. And that gives me an idea.

We've heard similar rumblings from the other end of the spectrum, open source CRM startup SugarCRM. Sugar will do maybe $15 million in revenues this year, but is in a hot space and growing like kudzu organically. Infor will do $2.3 billion (with a B) - that's 153 times more.

Anyone want to bet which company goes out first?

And if you really want to place a bet, talk to me about comparative valuation ranges for the offerings. Comment away!

Soft demand for Soft Brands (or, "please buy us, SAP")

Curiouser and curiouser. After spending the past couple of years batting eyelids at SAP with the "Fourth Shift SAP Business One Edition for Small Manufacturers Who Want to Staple Together Two Completely Dissimilar Legacy Windows Products," now Soft Brands has quietly turned off the lights on the solo Fourth Shift product altogether. Managing Automation has the story. This might be the first Graveyard case where there's nothing left to buy in the end: a nearly-cost-free de facto acquisition.

Oracle's Pretty Late Move

The long-expected PLM acquisition from Oracle came down today, as Agile Corp. fell into the arms of the Redwood Shores serial acquirer. Some good notes from MA's coverage:

• "over the past two years, Agile has had difficulty achieving consistent profitability"
• "Soon after taking over as CEO in January 2006, however, [CEO Jay] Fulcher also began searching for potential buyers for Agile"
• AMR's Jim Shepherd: "It's not really a surprise that Oracle ended up with Agile. The surprise is that it took this long."

Fulcher trots out the familiar canard of CEO's who decide a sale/payday is the best strategic option for a software company that misses its numbers: "Scale is such an imperative in the enterprise software space," he said. "We were at a run rate of $134 million, which is a very difficult size to be and still maintain all the things that are important about being a public company."

Infor loyalty oath, cont'd

CRN reports that serial grave-digger Infor is really putting the screws to its partners, to the tune of one point of margin for every day they don't turn in their exclusivity agreement. Yikes!

(For a more partner-friendly option, click here!)