SuccessFactors competitor happy about SAP acquisition

Taleo, a competitor of HR software-as-as-service supplier SuccessFactors is happy about the planned acquisition of the firm by enterprise software maker SAP in a $3.4bn deal.

Taleo views the acquisition as good news on several fronts, according to Mike Gregoire, chairman and chief executive of Taleo.

First, he says, it reaffirms that talent management and a cloud strategy are a critical part of every company’s success, and second, it takes SuccessFactors out of the competitive equation as a talent management focused player.

This, claims Gegoire, leaves Taleo as the only stand-alone SaaS talent management vendor of scale with more than 5,000 customers.

“While our competitors are trying to figure out a complex integration, we’ll be 100 percent focused on the success of our customers and growing our business,” he says.

SAP says the acquisition will accelerate its momentum as a provider of cloud applications, platforms and infrastructure and establish an advanced end-to-end offering of cloud and on-premise solutions for managing all relevant business processes. 

By acquiring SuccessFactors, SAP puts itself into a much stronger competitive position in human resources applications and reaffirms its commitment to software-as-a-service as a key business model, says Forrester analyst Paul Hamerman.

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