HP-SAP merger talk considered far-fetched

ITWorld Canada (Oct 5 2010)

1. Hewlett-Packard's surprise decision last week to appoint ex-SAP CEO Léo Apotheker to its top job has stirred up speculation that HP will acquire the enterprise applications giant to compete more effectively against rival Oracle, but some analysts say the notion is mere piffle. That's not to say there aren't obvious upsides to such a move. By purchasing SAP, HP would gain a vast ERP (enterprise resource planning) application installed base and lucrative streams of annual maintenance revenue. But it would in turn harm HP's application services organization, said Forrester Research analyst Paul Hamerman. "It would taint the advice they give customers. They have to be vendor-agnostic on the services side." (Read Full Article)

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