SAP and Google Team Integrate Google Apps with SAP’s Business ByDesign ERP Suite
SAP (NYSE:SAP) and Google (NASDAQ:GOOG) have announced a partnership, through which they will integrate their on-demand offerings – SAP’s Business ByDesign and Google Apps – for enterprise customers. SAP is currently the largest ERP software vendor, and competes primarily with Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and Salesforce.com (NYSE:CRM) in the enterprise resource planning software market. Google Docs competes with Microsoft’s Office suite, which dominates the productivity software market.
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SAP-Google partnership to help both acquire additional customers
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The integration will enable SAP’s Business ByDesign customers to use Gmail and Google Docs along with SAP’s ERP offering. Since there is no overlap between SAP Business ByDesign and Google Apps, we expect it to help both SAP and Google acquire additional customers. SAP and Google will encourage their software resellers to offer each other’s products.
As part of the arrangement, developers will also be able to create new apps using Google’s App Engine which tie into SAP’s Business ByDesign ERP suite. While Google has a similar partnership with Salesforce.com, SAP also offers Microsoft Office integration with its ERP apps.
ERP software accounts for nearly 38% of SAP’s $63 Trefis price estimate, which stands nearly 20% above its current market price.
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