SAP acquires SuccessFactors

Software giant, SAP has stepped firmly into the cloud computing world with its $3.4 billion purchase of SuccessFactors, a provider of cloud-based human resources software, Workforce reports.

"The cloud is a core of SAP's future growth, and the combination of SuccessFactors' leadership team and technology with SAP will create a cloud powerhouse," said Bill McDermott, co-CEO of SAP.

"The acquisition will help us address the top priority for CEOs globally - managing people and talent."

HR analyst Josh Bersin, of Bersin & Associates, in Oakland, California, says the merger is significant, given the growing interest in talent management software among HR executives.

According to Venture Beat, the SuccessFactors deal is more than just another purchase by a hungry software giant trying to transform itself.

SAP is way behind the cloud movement, and this purchase could help it catch up. And the deal could even propel SAP into a more compelling beast.