The continuation of two mega-deals (SAP & HP) this quarter is remarkable, despite the difficult times in which we now find ourselves where as effect a substantial reduction in the number of transactions has taken place. The fact remains however that especially in the beginning of Q4 market dynamics where still very much in motion.

Mega Deal SAP
SAP has acquired the California company SuccessFactors. The company develops human resource software that is made available through the cloud. The acquisition fits in with the renewed focus on SAP cloud services. To date it appears that SAP’s own cloud services have been less visible then desired.

Analysts have warned that SAP risked losing ground in the area of cloud computing. But there weren’t many acquisitions to be made with the right business profile. Salesforce.com was seen as too big to buy. Oracle bought RightNow Technologies and NetSuite in was majority owned October by Larry Ellison.

The price SAP paid is approximately 8 times forecasted revenue 2012, compared with a multiple 5 Oracle paid for RightNow. The valuation of the deal is high, but analysts consider this to be a reasonable valuation.

SAP now says it aims to become the world's No. 1 cloud business and plans to get there without more major acquisitions.

According to CEO Bill McDermott, SAP remains a company that primarily pursues organic growth, but where there is an opportunity, a crown jewel in the market like SuccessFactors, and it can help us become the cloud powerhouse we want to be, we will move.

Trend accounting firms continues
PWC acquired Proxyon SAP service and TruEconomy consulting this quarter. After KPMG and Ernst & Young, PWC is now also back to investing in IT consulting and implementation services. Remarkable news despite the criticism of potential conflict of interest by the Big 4 firms. Consultancy activities are now further strengthened next to the core activities in Assurance, Tax & HRS.

The discussion regarding this issue on European level seems to yet again favor the accounting firms. The political debate however, continues.

Specific acquisition in the fashion retail software market
There was particular news this quarter regarding the fashion IT world. Dutch retail software specialist Unisoft has been taken over by the English K3 Software Solutions.

Following the earlier acquisition of Pebblestone Fashion by K3, the number of players in the fashion retail and wholesale has become much smaller. Further consolidation in this market segment is to be expected.

Next to the competition in back office ERP systems its especially about the cash register and store process automation, and the display of the products. Web shops are getting more importance and the increasing need for one stop shopping regarding the implementation and integration services of software, hardware, communication & security equipment.

Remarkable further deals this quarter

Virtualization

• The acquisition of FileShare and APP DNA by Citrix this quarter. The acquisition of share file storage and the cloud expands portfolio in addition to the current virtualization services
• Quest Software takes over Changebase

Cloud computing

• GFI cloud management buys Montis managed cloud services
• Oracle enhances its cloud offering with the acquisition of RightNow Technologies

ERP / CRM

• Developments Qurius: Qurius sells Belgian and Spanish activities to Prodware. This transaction can contribute to making it back to health for Qurius
• Online CRM specialist Salesforce.com buys for an undisclosed amount a provider of mobile cloud services for social networking named Model Metrics

Other

• Rim incorporates New Bay
• Mega Deal: HP is still the UK's Autonomy for about EUR 12 billion
• Success Factors takes over Jobs2Web
• Acquisition Progress Software of Corticon. Corticon has many customers in Financial Services with its Business Rules Management Systems (BRMS) solutions
• Software Supplier Topdesk takes over rival Aventor
• Tech Data Acquisition in Germany