January 30, 2012
During an interview with a German newspaper, SAP’s co-chief executive Bill McDermott presented the idea of offering a HANA licensing deal to rival Oracle, according to Reuters.
"That would be possible. The question is whether Oracle can imagine it," said McDermott. "A technological platform is not a real platform if it were not open to partners and even competitors."
There has been debate if Oracle has the big data analytics technology to compete with SAP. However, Oracle’s Big Data Appliance tool was recently launched, and with their Exadata database and Exalytics in-memory business intelligence, they could compete within the big data analytics market.
Some are skeptical if this deal would ever occur, one being V3 MWD Advisors Analyst Helena Schwenk.
"I think this is something Bill McDermott said to generate a few headlines," Schwenk said. "SAP is buoyed up by its recent financial results but his comments should not be read into."
However, she is not totally ruling out the idea. She says that the big data analytics market is “immature” and rivals could possibly benefit from sharing complementary technology.
"If they ever were to partner, Oracle would probably use Sun's hardware and run HANA on that," said Schwenk.
Mike Davis, Senior Analyst at Ovum, also agrees with Schwenk in that this market is pretty young, but the hypothetical deal between SAP and Oracle would be dependent upon what customers want if it were to happen.
"Oracle could compete with SAP, but they could also license HANA. It depends what [customers] want to do with analytics," said Davis.
Since this is a fairly new market in the IT industry, could two rivals make a licensing deal like this and both be successful? What risks would be involved for these companies if they used the same HANA software?
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