"ClickSoftware Technologies Ltd. (Nasdaq: CKSW) is another Israeli company which has been specializing in developing tools for handling mobile data long before the first iPhone came into the world. It has close ties with the industry giants, such as IBM and SAP AG (NYSE; DAX: SAP), which embed its solutions in their projects.
ClickSoftware chairman and CEO Dr. Moshe BenBassat spoke in terms reminiscent of Rometty's remarks last week. At an IBM conference in the US last week, BenBassat discussed smart tools for doing business on the go and how Big Blue embed his company's ClickButler and ClickMobile products in its Worklight platform.
Remarks at ClickSoftware's last conference call imply that the company is on the verge of rapid growth because of the information revolution. Although the company used to focus on workforce management and optimization solutions, the backlog for its mobile solutions has ballooned and they will be its growth engine in the years ahead. Last year, the company also established a special division to supply cloud computing reliability solutions, which are also showing the first signs of strong future growth. "
Very promising... We will wake up one day just to find out that Click Software is no more an independent company, it will become part of IBM, SAP or Oracle etc.
There was a siesmic shift in the war between Oracle, SAP and IBM last week when Larry Ellison's team reported flat (ouch!) YOY quarterly revenue growth.
Oracle executives were publicly mocking SAP as a weakling competitor only two years ago. That tide has turned dramatically. And we know one thing: Mr. Ellison does not like losing.
My hunch is Oracle gets out their checkbook to make more acquisitions. A key weakness in their current technology stack is mobility where they essentially have no next-generation solution. Their Oracle and Siebel Field Service Management systems are also dropping further into the "legacy software" category as evidenced by the drift down and left on the 2012 Gartner Magic Quadrangle.
If Click can emerge as a leading enterprise mobility solution, something they've already achieved with schedule optimization, their acquisition value and attractiveness for any of the tech giants goes up.
With Click is wrapped into so many SAP installations an Oracle acquisition seems unlikely. SAP's long term mobility road map is based on their Sybase-Cyclo combination so presumably there is no need to acquire Click. If that solution falters, however, Click would be a natural fit.
The mobility war will ultimately be won on the customer front lines by which vendor can consistently delivery "wow" next generation mobility software and equally importantly, successful implementations. This is where I like Click's tight focus and team work. An intangible "value added" of Israel's mandatory military service is the ability to execute. It is a factor behind Israel emerging as the second largest tech R&D center in the world after Silicon Valley.
Based on your assessment, Oracle or IBM can deliver a double blow to SAP if they acquire Click.
SAP will have to stop selling Click and it might create a nightmare for their install base that was sold on Click by SAP.
For SAP to acquire Click for $400M-$500M will be small price to pay to keep them away from IBM and Oracle and keep their install base and sales force happy.