SAP Strikes $2.4 Billion Deal To Acquire Sales Performance Software Developer Callidus, Plans Front-Office App Offensive
SAP, continuing its push into cloud computing, this week inked a deal to acquire Callidus Software for $2.4 billion. SAP will combine the Callidus cloud-based sales performance (also called "quote-to-cash") applications with its Hybris ecommerce and omni-channel cloud software as the core of a new set of cloud front-office applications.
The acquisition steps up SAP's cloud application game as the company continues its transition from its reliance on revenue from traditional software license sales. It also fuels SAP's competition with rival Salesforce.com in the market for CRM/SFA cloud applications.
This week SAP CEO Bill McDermott, while announcing SAP's 2017 financial results, said he expects that cloud revenue in 2018 will, for the first time, exceed revenue from traditional software license sales.