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News Analysis

What Sybase customers should expect from SAP

By Chris Kanaracus
May 13, 2010 04:55 PM ET

IDG News Service - Sybase users and partners are wondering how the company's technologies will fare under the pending ownership of SAP, but some of the answers are easier to come by than others.

SAP announced the $5.8 billion deal on Wednesday. Once the deal is complete, SAP plans to set up Sybase as a separately branded unit, as it did after purchasing BI (business intelligence) vendor Business Objects in 2008.

Just like with that acquisition, customers will want to see SAP quickly announce future plans for the two companies' products, of which there is limited overlap, said Forrester Research analyst Paul Hamerman.

In a statement Wednesday, SAP said it will "continue to support" both road maps while also enhancing the products. More specifics could be on the way soon, according to Hamerman.

SAP "did a very good job in clarifying the road maps fairly quickly" after buying Business Objects, although company officials had worked on them prior to the deal's close, Hamerman said. Still, "I think you'll see something here with Sybase [within several months]."

The vendor is buying Sybase for its mobile technology platform and database technologies, and will also inherit Sybase's PowerBuilder application development tools. Interesting questions are hovering over PowerBuilder, given Sybase's work to support Microsoft .NET application development.

"PowerBuilder has been a cash cow for a while," said Forrester Research analyst Jeffrey Hammond. "I don't see that this strategy will change, at least immediately." The question is whether it will continue to make sense for SAP to remain in the discrete market for .NET development tools, Hammond said.

It would be preferable if SAP doesn't spin off products like PowerBuilder, said Don Clayton, president of Intertech Consulting in Houston, a heavy user of Sybase technologies.

"There's a heck of a lot of PowerBuilder code that's mission-critical out there for a lot of companies. I know it's a good technology," Clayton said. However, "bottom line, I'm cautiously optimistic" about the merger, he added.

Another user expressed similar sentiments.

"My main hope is that SAP allows Sybase to continue with what they are doing. My main concern is that people will jump to conclusions with regards to PowerBuilder's future before they wait for official announcements," said Brad Wery, creator of a PowerBuilder-focused Web site and president of WerySoft, which makes a database development tool. "It's the same with any merger, we now have an environment of uncertainty and speculation."

Meanwhile, there seems to be no chance that SAP will starve out or divest Sybase's mobile technologies, given how heavily the company's acquisition announcement focused on mobile.

The number of inquiries Hammond has received from Forrester clients seeking advice on mobile development has "just exploded" in the past couple of quarters, he said. "[Mobile] is one of the hottest areas for future growth."

Reprinted with permission from IDG.net. Story copyright 2010 International Data Group. All rights reserved.
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