Why SAP purchased MaXware

Identity Management This newsletter is sponsored by EMC Align Business with IT Discover the steps required to automate the management of IT environments to effectively respond to changing business demands. Click here to download this whitepaper today! Network World's Identity Management Newsletter, 05/23/07 Why SAP purchased MaXware By Dave Kearns I expected one trend this year to be a continuance of the consolidation that’s been occurring over the past couple of years, the “convergence of vendors,” as I mentioned last January. Last week’s announcement that SAP had acquired MaXware is simply the latest occurrence. This wasn’t SAP’s first acquisition in the identity arena. Last year SAP purchased Virsa Systems, a participant in the governance, risk management and compliance area of identity management. Some thought at the time that SAP would need to make further acquisitions in order to fully integrate Virsa’s technology – or to develop a fairly comprehensive identity practice of its own. The major driver for SAP, of course, is the competition from Oracle. When Larry Ellison annexed PeopleSoft, after PeopleSoft acquired J. D. Edwards, the battle line was drawn. Oracle’s successful integration of its identity management acquisitions - Phaos Technology, Thor Technology, OctetString and others - meant that SAP would have to acquire or develop similar technology or forever be on the defensive, or subject to the mercies of technology partners, when competing with Oracle for customers. Discover the Business of Gaining Organizational Support for your Security Initiatives. September 10-11, 2007 | The Fairmont Chicago How do you get everyone from the boardroom to the mailroom to comply with your security initiatives? Come collaborate with peers on critical business topics like this at The Security Standard-the only business summit for senior security executives. For the latest in planning and management strategies. Click here for more details MaXware had been up for sale for a while. Maybe not actively, but it was known that the right offer would be accepted. Some people are saying that SAP simply bought the identity management vendor that offered the best price and easiest acquisition. While that might have been part of the equation, I think the nature of MaXware’s business was at least as strong a reason. MaXware was one of the tiny number of independent virtual directory companies left (there’s still SymLabs and Radiant Logic as well as the open source Penrose Project). This validates the theory (OK, MY theory) that governance, risk management and in particular, compliance, can’t be effectively implemented without a virtual directory. Some will point to MaXware’s provisioning services and say SAP needed them to counter Oracle’s purchase of Thor. That’s true, but not the deeper reason which is that provisioning – just like compliance – requires virtual directory technology. The directory is the base for identity, and the virtual directory is the mechanism for tying the various parts of identity together. SAP has made the effort to begin to consolidate its identity practice; time will tell if it can make anything of it.   What do you think? Post a comment on this newsletter

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Contact the author: Dave Kearns is a writer and consultant in Silicon Valley. He's written a number of books including the (sadly) now out of print "Peter Norton's Complete Guide to Networks." His musings can be found at Virtual Quill. Kearns is the author of two Network World Newsletters: Windows Networking Strategies, and Identity Management. Comments about these newsletters should be sent to him at these respective addresses: windows@vquill.com, identity@vquill.com . Kearns provides content services to network vendors: books, manuals, white papers, lectures and seminars, marketing, technical marketing and support documents. Virtual Quill provides "words to sell by..." Find out more by e-mail. This newsletter is sponsored by EMC Align Business with IT Discover the steps required to automate the management of IT environments to effectively respond to changing business demands. Click here to download this whitepaper today! ARCHIVE Archive of the Identity Management Newsletter. BONUS FEATURE IT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: security.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007