Yesterday, SAP announced that it is acquiring for a hefty $8 billion in cash.

For SAP, this does make some sense. SAP is often perceived as being a legacy provider that struggles to play in the consumer space, and this may help it make a larger data play. It may also enable SAP to close the loop when it comes to some of the VoC gaps in its C/4HANA CX suite that was announced earlier this year. But all of this is to be determined.

For Qualtrics, the benefits are more about playing in a space that it claims greater expertise than it has. Despite its strong performance in The Forrester Wave: Customer Feedback Management, Q4 2018, the enterprise space is still newer for Qualtrics, so it makes sense to be associated with a company like SAP who is known in the enterprise space – and especially known for its scalability.

Put simply, it is still unclear what – if any – short-term benefits SAP or Qualtrics clients will gain. I know that a lot of people seem to be asking these questions:
– Will this acquisition help SAP achieve what it has long tried, but failed, to do?
– With the insane multiple on the revenue, the ROI is going to have to be high – will this acquisition be able to deliver what is necessary here?

Maybe we should send a survey out and see what people think.



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