Why SaaS is the Future for SAP

May 29, 2012 Bertram Meyer

sapAfter the acquisition of SuccessFactors for $3.4B in December, SAP now acquires Ariba for $4.3B, thus adding the second SaaS provider to its portfolio and gaining access to a SaaS (or "On Demand", to stay consistent with SAP terminology) procurement platform, as well as the world's largest supplier network.

There are two important lessons here:

First, SAP is stating unequivocally that it has now fully realized the importance (and future dominance) of the SaaS model, as supported by its declared 2015 On Demand revenue target of $2 billion.

Second, SAP is ready to rely mainly on acquisitions to achieve this target and to develop its On Demand portfolio.

Interestingly, according to SAP, one of its ambitions for the integration of Ariba is to improve the connectivity between Ariba's on demand procurement and SRM solution and SAP's installed base of 25,000-30,000 on premise ERP systems.

At Taulia, we support this ambition, as it validates a strategy we decided to embark on 3 years ago. Over these years Taulia has created unmatched financial benefits through an SAP certified standard solution that seamlessly connects on-premise SAP ERP systems with our SaaS platform for Dynamic Discounting, Supply Chain Finance and Supplier Portals. Thus, all of our current and future blue chip clients are already aligned with SAP's vision on the architecture of the future.

We feel that we have a second reason to be proud; SAP's announcement to migrate Ariba's platform onto SAP HANA for better analytics closely follows an earlier Taulia decision: the architecture behind Taulia's analytics-based finance solution that is built on SAP HANA and was unveiled in SAP CTO Vishal's keynote at Sapphire, is built on the same lines as the new proposed Ariba/HANA structure.

Taulia is dedicated to continuing to innovate and to pave the way - with the best interest of our clients (both buyers and suppliers) at heart. Our roadmap is ambitious and includes more connectivity to further business partners and network as well as value added services through our API, as well as an increase in both functionality as well as geographic coverage (moving beyond the more than 40 countries we are currently compliant in).

Taulia will remain open to all networks to leverage our platform as well as our financial expertise, including our longstanding partner OB10, our newest partner Tradeshift and a multitude of players and networks that we are working with.

We are truly looking forward to these exciting times filled with opportunity as a more dense network of interconnected cloud solutions emerges. The networked cloud provides unique benefits at unmatched total cost of ownership to businesses worldwide.

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