Must-know: Why has Adobe partnered with market leader SAP?

Market Realist

Adobe sees robust earnings backed by cloud subscriptions growth (Part 5 of 5)

(Continued from Part 4)

Adobe and SAP partners up to help businesses analyze data across marketing channels

A few months back, Adobe (ADBE) and SAP (SAP) agreed to partner up. SAP will resell Adobe’s Marketing Solution with its HANA platform and the hybris e-commerce suite in order to help enterprise customers better analyze huge amounts of data across various marketing channels. HANA is an in-memory database and application platform from SAP, while hybris is software that helps businesses sell more products and services. According to Adobe, “The combination of digital marketing and commerce solutions from SAP and Adobe will be designed to help enable businesses to analyze data across marketing channels and customer touch points, deliver more relevant, contextual customer experiences and ultimately to move one step closer to real-time customer engagement and drive better business results.”

SAP is still the leader in the BI and Analytics market

Adobe has taken the right step in partnering with SAP, which is the largest player in the Business Intelligence and Analytics software market. According to Gartner and as the chart above shows, SAP leads this market with a share of 31%, followed by Oracle (ORCL) at 14%, IBM (IBM) at 13%, SAS Institute at 12%, and Microsoft (MSFT) at 10%.

What are Adobe and SAP planning with this integration?

SAP and Adobe both will benefit through this partnership. Adobe lacks the in-memory capabilities that SAP has and SAP lacks the marketing capabilities that Adobe has. During its conference call to announce Q2 2014 earnings, Adobe’s management mentioned, “I think long-term and next year what you are going to expect to see is that both companies will jointly go to market. I think the real areas of synergy, is as commerce is becoming a bigger player for SAP with their hybris commerce suite the integration that we have with that. And for the real time enterprise the integration that we have between HANA as well as our Adobe Marketing Cloud, but we are hard at work educating their sales force on our offerings and we are starting to see both companies go into join customer accounts, but it’s early yet.”

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