SAP acquired Datango for an undisclosed amount, a maker of IT training solutions that the business software maker hopes will manage to stand out in a sleepy market.
Datango certainly has potential, a claim that SAP and several pundits are backing up. The company’s offerings provide a development environment for the creation of training material, documentation and support, in addition to providing a way of rolling out the program in a given organization.
Enterprise Applications Consulting’s Josh Greenbaum believes that SAP’s biggest challenge won’t have to do with the newly acquired Datango assets, but rather with the overall market attitude. Vendors have not been addressing companies’ needs adequately, and CIOs don’t consider training to be an area worthwhile investing in anymore.
“Despite the theoretical value that good training provides, training in the enterprise software world has been a colossal failure. It should come as no surprise that training budgets–as well-evidenced in SAP Education’s declining revenue–have been falling over the years as the awfulness of most training content has met the real problem of cost-justifying this awfulness.”
SAP will be taking on the market head-on by integrating Datango into its portfolio. Right Hemisphere, a company SAP acquired back in September, may be a candidate for Datango integration as well, considering that its visualization technology could add to Datango’s value proposition.
But the business software maker’s biggest buy in recent weeks was SuccessFactors. In December SAP announced that it has acquired the PaaS provider for $3.4 billion which, at the time, was a 52 percent premium. There seems to be plenty of justification though. SAP is pursuing growing markets such as the cloud, analytics and mobile to boost its bottom line, and SuccessFactors addresses at least two of these trends. The company has retained a lot of independence after the merger in order to stay on its current track.
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