SAP Partners with NetBase to Enter the Social Media Analytics Market

SAP (NYSE:SAP) has announced a partnership with cloud-based software maker NetBase, which will enable it to offer social media analytics capabilities, and also integrate it with SAP’s existing enterprise business intelligence offerings. ^[1] SAP competes primarily with Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM) and Salesforce.com (NYSE:CRM) is enterprise software, and is trying to gain a foothold in the burgeoning cloud-based software market. It recently acquired SuccessFactors, a leading cloud-based HRM solution provider, to bolster its ERP offering.

Check out our complete price analysis for SAP

We currently have a $63 Trefis price estimate for SAP, which stands nearly 20% above its current market price.

NetBase partnership to add social media analytics to SAP’s business intelligence offering

NetBase has developed ConsumerBase, a social intelligence database which analyzes and stores data from Facebook, Twitter, LinkedIn and other social media websites. SAP will resell NetBase’s service as SAP Social Media Analytics, and also integrate it with its business intelligence product, which will enable it to add social insights to transactional business data from its customers, to create a much more effective product which combines business and social analysis. SAP’s new social media analytics tool will compete with Salesforce.com’s recently launched Radian6 Social Marketing Cloud.

We expect SAP’s market share in the business intelligence software market to rise steadily going forward. Business Intelligence accounts for nearly 12% of SAP’s Trefis price estimate.

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1. SAP Tries To Leapfrog Salesforce.com On Social Analysis, Information Week [↩]