SAP’s acquisition of SuccessFactors validates that SuccessFactors has delivered proven value for their customers that SAP could not otherwise deliver now. This is a story that we have seen play out before, such as when Oracle acquired RightNow Technologies. What makes SuccessFactors appealing is that customer centricity is a core part of the company’s DNA. All the big players will eventually realize how important it is to play in the cloud. They need to get there quickly or risk being rendered obsolete.
What is the proven value that SuccessFactors brought to the table?
Traditional enterprise software has a reputation of being annoying, costly and non-productive for the end-user. Cloud computing companies, like SuccessFactors, can offer easy to use applications for the end-user, while also offering enterprise grade security and scalability that all enterprises require. No matter what value software companies may claim they deliver, they will always be plagued by confusing implementations, customizations, maintenance upgrades, and so on. They will never be able to deliver value to their customers instantaneously. Cloud solutions overcome that right out of the gate.