Cloud Migration Accelerating

Yesterday, SAP announced its agreement to acquire Ariba Inc. for $4.3 billion as it races against Oracle to obtain a dominant position in cloud computing offerings, according to Bloomberg News.  This is SAP's second multi-billion dollar cloud computing acquisition - it acquired SuccessFactors, a cloud-based human resources solution provider last December for $3.4 billion.

Ariba connects businesses to more than 730,000 suppliers and claims to be the leader in cloud-based business-to-business collaborative commerce applications.  Its extensive business intelligence database and integration capabilities enable users to use "eSourcing" to efficiently manage contracts, costs and cash flow.

According to research firm IDC, the market for cloud software delivered via the Web will grow five times as quickly as on-premises solutions.  Oracle purchased human resources solution provider Taleo Corp. in response to SAP's acquisition of SuccessFactors and also acquired customer relationship management solution provider RightNow Technologies Inc. to strengthen their position in the cloud.

We expect to see cloud-based enterprise document management solutions follow or even outpace this adoption trend as mobility platforms proliferate and global collaboration increases.  Stay tuned for breaking news and insights from Digital Designs as events unfold.

Until next time,

John Queen