SAP-Microsoft Merger Talks

The same week software giants SAP and Microsoft own up to merger discussions, a new study shows how consolidation forces within the enterprise-level applications and services space are working to shrink the number of vendors.

The study, released earlier this week by consulting firm Bain & Company, delineates the ways in which "gorilla companies" -- large vendors, such as Oracle, SAP, Microsoft and IBM -- continue to seek still greater size and scale through mergers and acquisitions.

Simon Heap, partner and technology strategist at Bain, and Vince Tobkin, co-head of Bain's global technology and telecommunications practice, co-authored the study. Heap said that the current capital market environment is driving mergers and acquisitions.
"The two questions are, 'Does this deal make strategic sense, and can it be made at the right value?'" he told CRM Buyer.

More here.