I'm engaged, but I still see other people

Interesting to read the recent article in e-Week on how the SAP-Business Objects deal may impact the long standing relationship between IBM and Business Objects. IBM and Business Objects have been close partners for many years. In fact, IBM has been neck and neck with Accenture as the most important strategic partner for BOBJ for some time. Interestingly, they also develop software together, with specific emphasis on SaaS. And then there is the minor issue of IBM having just spent $5B on Cognos. Guess that might make these strategic partner dinners a little uncomfortable.

In reality, this face-off is likely much ado about nothing - at least in the near term for a number of reasons.

First, many of the partner deals are driven via IBM global services. Even when Cognos becomes fully assimilated into Big Blue, Global Services or whatever they are called these days are likely to do as they please, much as they have always done. And if you don't think they won't recommend Business Objects to an existing account, or Cognos to a SAP Shop, you are kidding yourself. (BTW - Will Cognos' logo become blue?)

Second, IBM continues to drive both a platform play and custom consulting to tailor results for clients via a wrap and trap strategy. Their message to clients is, just keep your existing PeopleSoft HR, essbase, R/3, Agile, JDE, mainframe, and whatever else in the basement. We will freeze those systems where they stand and start building solutions for you on our platform to maximize your investment and provide near term value. Of course BI will be part of those solutions. I am not sure if this is a result of Innovation man or those ideation sessions they show in their idiotic commercials, but it makes sense to many companies. Especially when the alternative is a complete rip and replace with the new stack from Oracle or SAP.

Third, when those big ELA contracts come up and IBM reps are looking for what else they can stick into the goody bag for the $50M they want to charge, Business Objects and Cognos are already on the price list. There will be no incentive for the IBM field guys to vote Cognos, especially if the client has previously bought BOBJ via IBM.

Over time this is may be a stickier issue, but among the options provided short term, IBM customers have more choice and have a little bargaining leverage. For my money, this will be even more entertaining if the rumor of IBM acquiring SAP were ever to come to pass. This would make those awkward blended family holiday situations look warm and comfortable