Sure they have a common enemy in Oracle and have targeted them before, but this
recent announcement is around business performance management (BPM). More specifically budgeting, planning and consolidation. That would mean the
Oracle/Hyperion product set and the product set that
SAP/BusinessObjects acquired with OutlookSoft. Both companies have very strong offerings in this area. Microsoft had a solid offering of its own in this area,
PerformancePoint, which they backed away from. That probably made sense because it was still many versions away from truly competing with the established players. The OutlookSoft product set was designed from the ground up to support and take advantage of Microsoft technologies so SAP is a logical partner for Microsoft in this area. What does this mean though for other BPM vendors with Microsoft-based solutions? Whatever happens, the fact that budgeting and planning is the new battleground says a lot about the growing importance of business performance management.