To: paul who wrote (5132 ) 1/22/1998 5:59:00 PM From: Maverick Respond to of 19079
Business app makers shake out By Erich Luening January 9, 1998, 11:20 a.m. PT news analysis Business application software makers, in search of fresh revenue sources, are finding that the best way to expand is through mergers and acquisitions. Out of the five major players in this global industry--Baan, JD Edwards, Oracle, PeopleSoft, and market leader SAP--three have either invested in, partnered with, or bought out smaller application developers in the past year to shore up their core products and build integrated enterprise applications suites. Baan, PeopleSoft, and SAP all made major buys in 1997. And analysts say the purchases definitely mark a trend in the industry, and they expect more in 1998. "What you have are these companies trying to develop a continuous business solution...by integrating their back office applications with the front office," Judy Hodges, an analyst with International Data Corporation, said. Observers say the move represents a new drive by many companies in the industry to bring their core product into the customer services area--the front-office, which will help their presence in the electronic commerce market as well. In the most recent procurement in the industry, SAP last month announced plans to buy a 50 percent share in one of Europe's leading sales force automation firms, Kiefer & Veittinger. SAP said it plans to combine K&V's technical resources and consulting services with its development efforts to provide corporate users with customer management applications. No specific financial terms have been disclosed. Observers say the move represents a new drive by many companies in the industry to bring their core product into the customer services area--the front-office, which will help their presence in the electronic commerce market as well.