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Thứ Tư, 18 tháng 9, 2013

CRM: WDAY Integration A Benefit, Says Nomura: Will SAP Have to Play? - Barron's (blog)

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Nomura Equity Research‘s Rick Sherlund this afternoon reiterates a Buy rating on shares of (CRM) following the company’s announcement this morning that it will integrate the offerings of Workday (WDAY) into Salesforce’s cloud computing applications, and that Workday will do likewise.

The companies are to host a conference call with analysts this evening, starting at 4 pm, Eastern time. You can listen to a webcast of the call on the company’s investor relations Web site. Salesforce stock is up $2.47, or 5%, at $52.37, while Workday stock is up $2.93, or 3.8%, at $81.05.

Writes Sherlund, the agreement is a plus for Salesforce, as it removes some headaches for the company’s customers:

We believe that Salesforce is the big winner from this announcement regarding deeper integration with other applications vendors, eliminating the need for customers to endure the expensive and lengthy process of integrating applications from different vendors. Integration has historically been a key advantage of SAP, so we view these announcements as a relative benefit to Salesforce.

Sherlund notes the deal follows a much ballyhooed deal of a similar sort in July between Salesforce and Oracle (ORCL), thus reducing the competitive advantage for Oracle. He thinks SAP (SAP) may feel compelled to follow suit.

SAP has long maintained the benefits of a broad integrated applications product line, in the earlier generation of client server applications, delivering rich functionality, while eliminating the need for costly integration among different vendors’ products. As the market moves to best-of-breed SaaS solutions, we see SAP’s competitors striving to deliver the benefits of integration among their respective products. Oracle was likely motivated to gain competitive edge against Workday, although Workday now seems to have neutralized any potential relative integration advantage that Oracle might otherwise have derived vs. Workday. Were SAP compelled to also integrate with Salesforce, this would provide a further significant advantage to

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