SAP Watch

May 5 2015   5:59PM GMT

SAP squashes any idea of a Salesforce bid

Scott Wallask Scott Wallask Profile: Scott Wallask


Regardless of whether the reports of Salesforce possibly seeking a bidder represent only rumors, SAP stated something as a fact:

It won’t buy Salesforce.

“We have zero interest in,” said Bill McDermott, SAP’s CEO. McDermott spoke to reporters and other attendees during a Q&A at the SAP Sapphire conference today in Orlando.

Last week, Bloomberg Business reported on rumors that Salesforce had sought advice from bankers in reaction to a potential bid for the company. The issue is of interest to attendees at Sapphire because so many SAP customers also use Salesforce.

“You couldn’t throw a rock in here without hitting a Salesforce customer,” said Don Loden, principal consultant at Decision First Technologies in Atlanta.

Obvious suitors for Salesforce would include SAP, Oracle, IBM, and Microsoft. Salesforce is valued at around $42 billion, but has been losing market share, according to some high tech observers.

At Sapphire, SAP is pushing a “run simple” motto that boils down to SAP’s HANA system, particulary on a cloud platform, pulling data from a company’s core ERP system. McDermott envisions an automated supply chain using such data that gives customers the items or services they want within an e-commerce arrangement.  The need for salesforce automation (SFA) to make those customer contacts is dwindling, McDermott said, terming Salesforce a “redundant system” in such cases.

“The cheese moved from SFA to external customer e-commerce,” he said.

Scott Wallask is news director for the Business Applications and Health IT groups at TechTarget. Follow him on Twitter @Scott_HighTech.

3  Comments on this Post

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  • dring1
    Bloomberg broke the story, saying that "people with knowledge of the matter" told Bloomberg that Salesforce was approached by a would be buyer and that now Microsoft is evaluating a bid.
    3,015 pointsBadges:
  • Scott Wallask
    Hey Dan -- 
    It's funny, after I posted the blog on Tuesday, I ran into people Tuesday night who were talking about the Microsoft article and some of the trading news with Salesforce stock. I wonder whether SAP was so strong in its reaction because execs knew Microsoft was bidding.
    685 pointsBadges:
  • dring1
    Scott -- I'll tell ya -- Who else could absorb Salesforce but MSFT or ORCL? And I can't imagine Marc Benioff, CEO of CRM, suddenly finding himself an underling of arch-rival Mark Hurd, CEO of ORCL. MSFT has got to be the buyer here if there is a buyer, but who knows? With a $380 billion market cap - 7 times the size of CRM - MSFT could certainly pull off this deal.
    3,015 pointsBadges:

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