SAP acquisition of Syclo needed to meet mobile app plans

SAP’s announcement this week it is acquiring Syclo is the latest in a series of moves to build up its mobile application strategy. Syclo, which focuses on industries such as utilities, oil & gas, life sciences and manufacturing, has previously partnered with SAP to create mobile apps on the Sybase Unwired Platform (SUP) with its Syclo SMART Mobile Suite for SAP Systems.

Recent studies confirm that more and more companies are moving towards mobile applications. According to a 2011 Gartner report, mobile application development projects targeting smartphones and tablets will outnumber native PC projects by a ratio of 4-to-1 by 2015. In its “2012 Small and Medium Businesses Mobile Solutions Study,” the SMB Group noted that SMBs expect to spend 36% more in mobile applications.

The 2011 SearchSAP.com reader survey revealed that operational efficiency is the main driver for adopting mobile technology and at least two-thirds are interested in deploying mobile applications. The SMB Group study also noted that operational efficiency concerns were the main drivers, with working away from the office and better access to people and information for decision making revealed as the main benefits of mobile applications for SMBs.

The 2011 SearchSAP.com survey indicates operational efficiency is the main driver for adopting mobile technology.

The Syclo acquisition makes sense for SAP because of its plans to increase the number of mobile apps it offers to enterprises – and elsewhere. As part of its push to perhaps gain more customers, SAP has been dabbling in other areas, such as the collaboration app StreamWork (which doesn’t require the user to have an SAP system) and Recalls Plus, a consumer-level app targeted at new parents that alerts them to recalls on children’s products. To create all the apps it – and its customers – would like, it’s going to need help. I wouldn’t be surprised to see other acquisitions and partnerships in the next year or so.