The bottom line is this: A series of cloud acquisitions won’t help lumbering old ERP one bit. Acquiring cloud companies doesn’t make you a cloud company any more than buying a Giants jersey makes you Eli Manning. It’s not a strategy for an on-premise solutions company. It’s an attempt to distract customers and hope they will forget about the ERP boat anchor they’re stuck with.
The big ERP players had their day, but now it’s coming to an end. This is the classic Innovator’s Dilemma. For too long SAP and Oracle have watched the enterprise market innovate around them, stuck to their knitting and failed to adapt. The cloud technology wave has passed them by, and now it’s too late.
It’s time for SAP and Oracle to either accept that they need to adapt and go all cloud, or accept that they are going to go the way of the mainframe stuffed in the back closet. They won’t die completely. They’ll just become irrelevant.
Sunday, February 19, 2012
Great Acquisitions! Now Put a Fork in ERP | TechCrunch
via techcrunch.com
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