Dive Brief:
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SAP acquired CallidusCloud, of Callidus Software, in a $2.4 billion deal, according to a company announcement. CallidusCloud, which has been an SAP partner for a number of years, will help SAP grow its "lead-to-cash" offerings.
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Because CallidusCloud is a "synergistic addition" to SAP, meant to strengthen SAP's CRM and ERP offerings with is configure price quote (CPQ) capabilities. SAP leadership is hoping to increase overall cloud revenue, reports Reuters.
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"The addition of CallidusCloud aligns perfectly to SAP's innovation strategy to transform the front officer," said SAP CEO Bill McDermott, in an announcement.
Dive Insight:
SAP, an already dominant CRM provider, is looking to diversify its cloud-based offerings with the purchase of CallidusCloud. By adding to its portfolio, CallidusCloud aligns SAP more closely with its competitors, including Oracle, Salesforce, Workday and IBM.
SAP's acquisition of CallidusCloud is reminiscent of Oracle's purchase of NetSuite in 2016. Both companies' motives stem from the desire to move software from the back to front office offerings as part of a consumer-driven approach.
SAP has a robust suite of offerings and has found success with its Software as a Service approach. In its last earnings report in Q4 2017, the company saw a 17% year-over-year increase in the new cloud and software license order entry.
The company was also named a leader in Gartner's 2017 Magic Quadrant for multichannel campaign management, or vendors that "orchestrate customer engagements and marketing content to individuals and segments across multiple channels," according to the announcement. SAP was closely followed by Oracle, IBM and Adobe.