Dave Kellogg shares his insights on the SAP/Sybase deal – an excerpt:
SAP has a database problem. That’s clear. And I think buying Sybase was probably the best way out of it. The price, at 4.8x TTM sales seems a bit high as does the 50%-ish premium. But then again, SAP didn’t have any real alternative if it wanted to buy size and credibility in the relational database market. The only other $1Bish company in the space is Teradata and they are data warehouse oriented. SAP presumably wants a data warehouse DBMS, but they need an OLTP DBMS as well. With its wide portfolio of DBMSs (e.g., column-oriented, in-memory, mobile, OLTP), Sybase fits the bill nicely. And that’s not to mention its Sybase 365 mobile services which position it well in mobile analytics.
Check the full post for more insights on what is clearly a very risky bet for SAP.