NetSuite has unsurprisingly hit out at rival SAP after the German giant announced its intention to acquire e-commerce specialist Hybris, placing the two firms in ever great competition.
The move is designed to help SAP improve its services for retailers and online storefronts, an area where NetSuite specialises. The firm's have clashed before over their cloud offerings and the latest move from SAP has raised the heckles of NetSuite.
“SAP is running scared," said Craig Sullivan, senior vice president of International Products at NetSuite.
"They know they are ill equipped to make a meaningful impact in the cloud market. They’ve resorted to their standard practice when they don’t know what to do: make an acquisition to plug a gap rather than supplement a core strategy.
"All the best to them with integrating yet another new set of applications and services into the hairball of their already complex product offering."
Nevertheless, SAP said its deal to acquire Hybris into the SAP retail and consumer lineup alongside HANA, Jam and CRM would help give it customers another key platform for their requirements.
“Hybris is a recognised leader in commerce platform technology, and the combination with SAP will enable us to deliver complete omni-channel business solutions and continue our strong growth trajectory,” said Hybris chief executive Ariel Lüdi and president Carsten Thoma in a statement.
“Joining with SAP will significantly expand the scope, scale and power of Hybris’ commerce platform, and allow us to deliver the next generation of customer engagement innovation across all channels.”
Based in Switzerland, Hybris specialises in e-commerce and retail tools for merchants. The company's offerings include both e-commerce application support tools and customer-facing call centre and account management tools.
Analysts believe that the deal will finally give SAP a credible e-commerce and retail application management offering. Forrester analyst Peter Sheldon said that SAP's own WCEM offering was so far behind competitors that the company had no choice but to pay up and acquire the high-flying Hybris brand, underlining NetSuite's comments.
“The lack of a credible enterprise commerce platform has made it hard for SAP to compete against its arch rivals IBM and Oracle, which respectively have invested billions of dollars in their own e-commerce acquisitions over the past three years,” Sheldon explained.
“This situation simply came to a boiling point. SAP finally reached the conclusion that catching up via a build strategy was not working.”