TechCrunch trivializes SAP's $3.4B (billion) cloud acquisition

SAP's huge acquisition is important to the entire cloud computing ecosystem. It's a big deal!
Written by Michael Krigsman, Contributor

Photo credit: Cloud watching by Michael Krigsman

Photo credit: Cloud watching by Michael Krigsman

TechCrunch trumpeted an odd lack of interest in SAP's acquisition of human capital management vendor, SuccessFactors, for $3.4 billion. The popular technology startup blog offered these choice comments:

In what is perhaps the most boring piece of tech news to come out of this week, German software giant SAP has today announced that it will buy the US-based SuccessFactors....

I think this means that it provides enterprise software for human resources, but you can never be too sure with these incredibly dull companies. I am too bored to Google it.

If you are actually interested in finding out more, or having trouble sleeping and need something to push you over the edge, SAP will be holding a conference call....

Even the carefully chosen web address for the TechCrunch article speaks volumes:


Now, I totally get that enterprise software is not exciting. But let's remember two facts:

  • This deal is worth billions and is about the cloud. Regardless of your opinion good or bad, it's important.
  • According to SAP, 63 percent of the "world's transaction revenue" touches an SAP system

The SAP acquisition demonstrates the mainstream importance of cloud computing; it's good for everyone involved in the cloud ecosystem. From startups, which are TechCrunch's usual fare, to the largest players in the world this acquisition says: CLOUD HAS ARRIVED.

One startup CEO, Aaron Levie from Box.net, which sits at the junction of consumer and enterprise, tweeted his recognition that this acquisition matters:

A a million dollars isn't cool. You know what's cool? $3.4B cloud acquisitions. Take that consumer internet!

As of this writing, here are the best pieces I have seen discussing the SuccessFactors acquisition:

SAP Press Release: SAP To Accelerate Cloud Strategy with Acquisition of SuccessFactors

ZDNet: SAP acquires SuccessFactors for $3.4 billion: Cloud consolidation accelerates

Jon Reed: Some quick thoughts on SAP's acquisition of SuccessFactors

John Appleby: SAP acquires SuccessFactors – is it all hot air in the cloud?

Ray Wang: News Analysis: SAP Buys SuccessFactors for $3.4B Signals SAP's Commitment To Cloud, HCM, and Social

Paul Hamerman: SAP’s Acquisition Of SuccessFactors Re-engergizes Its HCM And SaaS Strategy

Sven Denecken: SAP to Accelerate Cloud Strategy with Acquisition of SuccessFactors – will talk more #SAPSummit

Phil Fersht: SAP + SuccessFactors = Great for SAP, but could restrict growth potential for the HR services industry

Editorial standards