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Oracle, SAP, Microsoft, IBM hiring more SaaS talent

What was that? The giants are stirring? Not only stirring, but acting like the ‘common people’? Yes, that’s right, large software companies including Oracle, SAP, Microsoft, and IBM are focusing more on Saas talent. Some reasons may be obvious… but as the old business question goes “What’s in it for them”? One word: Money. Specifically, valuations. Recently Martin Wolf M&A Advisors released research that showed Saas company valuations rose twice as much as those of legacy software companies.

So what does this mean in the ERP and CRM sphere? Well, we’ve said for a while that the cloud wasn’t going away… but that was more from a pragmatic viewpoint of what customers were slowly gravitating towards. Now that the large companies also see the rewards in terms of valuation, you can expect the marketing, advertising, and hopefully substance behind all of it start to increase significantly… to the point where it is no longer an attitude of “I guess we have to” from the giants, but rather “Hey, let’s focus on this to raise our stock value”.

…and what does that mean to the buyers of such systems? It means there will be a lot more focus on the giants telling you why SaaS is right for you, rather than a reluctant showing of glossy brochures that say “yes, we do it too”. This is neither good nor bad, but just something to be aware of in your software selection process.

SaaS valuations compared to Legacy company valuations
About Author

Jason Spanos

Jason Spanos is a Partner at successERP, conducts a variety of enterprise projects, and has seen so many implementations that he is rumored to have a tattoo on his shoulder that says "Go Live".

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