SAP, Ariba, and SuccessFactors — By the Numbers

Please excuse our back-of-the-napkin math, but while we're waiting on hold to join the SAP/Ariba analyst call, we thought we'd share some quick arithmetic on SAP's recent cloud transactions.

SuccessFactors

2011: 1,578 employees, sales $327.9M - $208K per employee

SAP paid $3.4B -- 10.4X revenue or $2.15M per employee

Ariba

2011: 2,432 employees, sales $443.8M - $182K per employee

SAP plans to pay $4.3B - 9.7X revenue or $1.77M per employee

SAP

2011: 55,765 employees, sales $19,116.3M - $343K per employee
At the same 10X evaluation SAP would be worth $191B -- however today their market cap is $70B

Clearly, SAP is willing to pay a premium for Ariba based on the network business model (which is figuring prominently as an early theme on the SAP/Ariba analyst and media conference call). While the early details of the execution plan remain sparse so far, SAP is clearly excited about the "cloud-based business network," as they put it on the call. Stay tuned as our analysis continues.

- Thomas Kase and Jason Busch

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