SAP and Fieldglass – Where Does Services Procurement Fit Into a Morphing Cloud? [Plus+]
SAP is a company in the midst of a transition, owing to a range of factors, not the least of which is a management structure that makes it hard for a single leader to call the shots. In this case, the shot is a bazooka: spending roughly $1 billion on a best-of-breed services procurement provider in a market where SaaS valuations have recently taken a slight hit, and with an internal environment not necessarily conducive to seamless integration. But besides the market valuation and the dynamic nature of the current governance structures, the primary business issue at hand is the role of cloud in SAP’s future and how it works with the core business as a tightly coupled component or a loosely coupled and separate extension There are many factors that will contribute to the ultimate outcome of the transaction and as with Ariba, there will come a time when SAP takes the provider into the fold versus treating it as a loosely coupled business line extension. In this Spend Matters Plus research brief, Chief Research Officer Pierre Mitchell and Managing Director Jason Busch examine the opportunities for integrating Fieldglass within the broader SAP juggernaut and the potential for further acquisitions given the changing of the SAP cloud guard.