SAP Bids $3.4B for SuccessFactors

Germany-based enterprise software provider SAP has placed its largest bet but on service-based cloud computing with a $3.4 billion bid for U.S. based SuccessFactors, which provides human resources software on demand. News of the proposal was unusual for arriving on a Saturday when analysts and clients of the companies would be more often than not unaware of such an announcement.

The moves of competitors

Analysts have noted SAP's focus on cloud research amid the moves of competitors and the rise of new independent vendors in outsourced innovation, notably Salesforce.com SuccessFactors, Workday and other emergent competitors.

Reuters quoted Forrester Technology analyst Paul Hamerman as saying that SAP had paid a premium for SuccessFactors, however put itself into a better competitive position. Forrester has pegged the cloud computing market growing from $40.7 billion in 2011 to more than $241 billion in 2020.