10 Software Industry Predictions For 2012


2. Big Software Vendors Will Go On A Cloud Acquisition Spree

In a sign of what's to come in 2012, SAP struck a deal in early December to acquire SuccessFactors, a developer of cloud-based human capital management applications, for $3.4 billion. The deal brings "cloud DNA" to a company whose core business has long been selling big, on-premise ERP applications.

SAP's move certainly wasn't the first cloud technology-related acquisition. CA, for example, has aggressively been buying up cloud software companies such as Nimsoft and Interactive TKO.

But in 2012 you can expect this trend to accelerate as big, mainstream software vendors acquire cloud technology startups as they try to keep up with customers' transition to the cloud. Even relatively big cloud-application companies such as NetSuite, Intacct and Workday could be acquisition targets.



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