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Sep 16 2007   9:48PM GMT

HP and SAP: A winning combo?

badarrow Barbara Darrow Profile: badarrow

A good source swore last week that Hewlett Packard is talking with SAP about buying the ERP kingpin.

This guy is tight with HP insiders. And knee-jerk doubts aside, the idea is not so farfetched. Please note: I know nothing more about a potential deal than what this guy is saying. But, let’s think about it a second.
For one thing, HP has a big SAP services business. For another, ERP is not new to HP which used to field its own ERP for itty-bitty little customers like General Electric. It was called MM3000. Or MM-3000.

In the past few years huge software companies—Microsoft, IBM, Oracle—were all rumored to be interested in SAP. Microsoft was even forced, by an Oracle court filing, to admit it considered and dismissed the idea of buying SAP. OLarry Ellison must have loved causing that particular kerfuffle.)

The very notion that SAP, a huge software company, has been in play shows the impact of Oracle’s multibillion-dollar-purchases of PeopleSoft/JD Edwards and Siebel Systms, have changed the landscape. Or, looked at another way, it shows how the enterprise software landscape has forced Oracle to drive an unbelievable amount of consolidation.

So, as SAP unveils its A1S hosted ERP service for the mid-market this week, keep this notion of an HP-SAP combo in the back of your mind.

Let me know: Would SAP/HP be a winning combo? Or just another megadeal made in Wall Street

Barbara Darrow, a Boston-area journalist, can be reached at badarrow@comcast.net.

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