Businesses View Operations in 3D with SAP’s Newly Acquired Software

SAP (NYSE:SAP) announced plans to acquire Right Hemisphere, a software company which creates 3D visualization software for enterprises. ^[1] The technology developed by Right Hemisphere lets customers visualize business processes like design, manufacturing, sales and operations and understand them more easily. SAP is one of the largest providers of ERP (enterprise resource planning), CRM (customer relationship management) and other software for enterprises. It competes primarily with Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and Salesforce.com (NYSE:CRM).

We currently have a $62 Trefis price estimate for SAP, which implies a 25% upside to the current market price.

Right Hemisphere Acquisition to Improve SAP’s Entire Product Line

Using the visualization and communications technologies from Right Hemisphere, SAP will be able to enhance all its software offerings to make them more intuitive and enable visual navigation of an entire product and its related data in a unified environment. For example, using the visualization software with SAP’s ERP offering, customers can visualize the entire resource management process, leading to better understanding of their systems and more optimization opportunities.

SAP’s management noted:

Employees will be able to make process and procedural adjustments on the fly, and sales and customer relations teams will be able to provide their customers with a photo-realistic visualization of the final product from any location, allowing them to give feedback before the product is delivered.

Michael Lynch, CEO of Right Hemisphere, stated the below.

We are very excited to be part of SAP. The combination of SAP’s vast set of business information and Right Hemisphere’s visualization capabilities will change the way businesses of any size create, manage and deliver products and services across their enterprise and their supply chain.

If these new visualization features lead to an increase in SAP’s marketshare for its ERP, CRM, Business Intelligence, Product Lifecycle and Supply Chain software, it could mean significant upside to its current Trefis price estimate of $62.

Tweak the model to see how an increase in market share for each of these divisions could lead to an increase in the stock price.

Check out our complete price analysis for SAP.

1. SAP to Acquire Right Hemisphere for 3-D Visualization Software, Enterprise Apps Today [↩]