SAP Acquires Analytics, Inc. -- It's Finally Official

Posted At : August 12, 2008 2:35 PM
Related Categories: Spend Management

I just came across this press release that SAP issued a couple of hours ago. In it, there's a notation buried deep within that SAP has "further strengthened" its new Spend Analytics solution "with data services and technology from industry leader Analytics Inc., which recently was acquired by SAP." While we all know the deal was done sometime ago, I'm happy that SAP has finally made it official. For my earlier take on the deal before it was announced, click here. I'll plan to add some additional thoughts on the acquisition as well as where SAP is headed down the spend visibility path later this week. This is good news for the market, yet I believe that SAP, Emptoris, Ariba and others might get run over in the coming years by a new breed of spend navigation and analysis software that is just beginning to emerge from players like Endeca that have the potential to change the entire visibility paradigm.

- Jason Busch

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I have seen Endeca type technology and applications over the last ten years. Does anyone recall a company called Saqqarra? They had a similar step-search approach that they used to narrow down the results. All these innovative attribute search solutions are cute. Every so many years, they are re-marketed with a twist, and some buzz. But the truth of the matter is that they rely on structured data, i.e. data that has been parameterized. Without that, they fall flat. And we all know how structured real world data is, and what priority content rationalization gets in the IT budget. So, bottomline, i have no idea how this technology can deliver better results in Spend Analysis. Perhaps a different cuter user experience, but better results?...perhaps Jason you can shed light on your thinking...

# Posted By SCMWise | 8/13/08 9:11 AM

I'm not so wise as SCMWise but, I think Endeca (Fast, Siderean, Autonomy others) is different than http://www.saqqara.com/ or any other catalog - item master management companies of the past. The attribution is not derived through structured descriptions (although, I'm all for fully attributed description format) but, from Googlesque indexing of text and proximty inference \ word frequency that help classify the information. I'm just as skeptical as the next person but, I think the technology is significantly different.

As far as "cuteness"; sizzle sells. If a tool can demonstate functionality that makes you say "WOW!", I think the sell should seek to deliver the sizzle. Your (our) job is to separate out the substance from the show.

Jason, bring on more sizzle, show, or substance related to SAP and Analytics, Inc. - what might a spend analyst look forward to?

# Posted By Mike O. | 8/13/08 9:31 AM

Jason, Mike, thanks for the kind words. And SCMWise, Endeca does offer a variety of techniques for inferring structure, but I think the more important innovation is our ability to handle highly irregular data (often called semi-structured data) that breaks parametric search. It's earned us a bit more than buzz. :-)

# Posted By Daniel Tunkelang | 8/14/08 7:42 AM

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