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SAP - Concur deal : SCM Practioner's view

In order to acquire an unbeatable leadership position in the SaaS and Cloud based solutions SAP recently acquired Concur technology, a market leader in cloud based Travel and Expense management software.This 8 billion USD deal has several questions in the minds of several SCM practioners across the globe. My blog will try to address few of them.

With Concur's acquisition SAP will be strengthening its position on the cloud base ERP market which is different ball game then the traditional on premise ERP market. Though SAP is a leader in the on premise SAP market the cloud / SaaS ERP is different ball game altogether. Though SAP took a while before acquiring Ariba, a leader in the cloud based procurement solutions, it was quite swift in acquiring Fieldglass, 'cloud' based vendor management software specialized in temporary workforce management. The question is where in concur fits in. Ariba and Fieldglass are so far successful acquisitions for SAP and Concur will help SAP to help customers in T&E  space. Looking at the fitment, scope and potential of the product, some doubts have been raised on the price at which SAP clinched the deal. But as it happens with every deal, concur's acquisition is no exception as most of the deals are questioned either on the acquisition cost or the timing of the deal.

We can certainly say that SAP has taken a lead in positioning itself in this new 'ERP on cloud' scenario. Besides other advantages, cloud based ERP can help the online access to all the all the parties involved in the 'transaction' without specific integration needs. SAP expects revenues from on demand ERP to surpass on premise from 2020.

We can certainly say that Ariba, Fieldglass and now concur are part of the large jigsaw puzzle which SAP wants to solve in order to be an unquestionable leader in cloud based ERP solutions. I am sure there will be few more acquisitions especially in the mobile ERP space to solve this puzzle which will put SAP in lead position both in premise and cloud.


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