SAP bets on in-house innovation, but does not rule out further acquisitions


SAP bets on in-house innovation, but does not rule out further acquisitions

Warwick Ashford

SAP co-chief executive Jim Hagemann Snabe says the company's ability to innovate is key to its long-term success, but does not rule out further acquisitions.

In-house innovation is a better strategy, but acquisition can be an important part of an innovation strategy if focused on future technology, he told Computer Weekly.

SAP reported record third quarter software revenues, which Snabe attributes to innovation in SAP's core products, integration with analytics and innovation around mobile applications, in-memory computing and cloud services.

SAP'S acquisition of analytics technology with Business Objects in 2007 and mobile technology with Sybase in 2010 directly support two of these.

More recent acquisitions include enterprise data exchange service firm Crossgate and 3D visualisation software maker Right Hemisphere.

Through the acquisition of Crossgate, SAP sought technology to enable companies to connect systems through the cloud to optimise end-to-end processes beyond the boundaries of the organisation. Right Hemisphere will enable SAP to bring 3D into the user experience of business software.

"We are not shying away from acquisitions; we just want to make sure that our innovation capability as a company is the main driver of growth, but we always look for opportunities in the market, even to acquire," said Snabe.

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