Arbor Software has acquired Appsource to take on Oracle in the market for sales and marketing applications for online analytical processing (Olap) software.
Appsource is a $3 million company, based in Orlando, Florida, and its 10 management and staff will be fully integrated into Arbor, although its Wired for Olap analysis and presentation tools will retain the same brand name.
Nigel Pendse, author of the Olap Report, commented: ?The two companies are made for each other. In a way, Arbor didn?t need to buy Appsource because Wired for Olap only works with Essbase and is sold into all the same accounts. But, it will strengthen its position in the coming battle of the triad, that is IBM, Oracle and Microsoft, which will dominate this space. It?ll pitch Appsource head on against Oracle, which is market leader with Sales Analyzer.?
He added that the takeover marked a subtle change in strategy for Arbor, which in the past had positioned itself as a back end Olap server vendor only.
The move would now enable it to offer a more complete package, but Pendse predicted it would cause it some problems with its resellers and partners, with which it would now compete.
?Strictly speaking, this will not make Arbor more competitive on the market because all of Appsource?s customers are its own anyway, but it will make it a more fully functional vendor and is a sign that the company is growing up. It?s a sign Arbor sees itself as leaving the small guys behind and as being more a part of IBM, which does not own it at the moment, but is likely to in future,? he explained.
Peter Philpott, Arbor?s director for northern Europe, said the aim behind the acquisition was to try and hit the sales and marketing application area with full force and denied an acquisition by IBM was in the offing.
?Our aim is to knock Oracle for six, but to do that we have to be really focussed on our target markets. But, we?re not looking at getting into the managed query market to take on people like Business Objects and we?re keeping our resellers informed of whatever we?re doing. There may be some pretty grey areas where we come across partners, but we?re keen to work closely with them,? he said.
An Oracle spokesperson said the company welcomed competition in the market, but believed the quality of its product would ensure its continued success.
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