SAP and Crossgate
Recently SAP made a large investment in Crossgate AG, a top provider of business-to business integration services. One of the primary reasons for the investment is that SAP realizes the importance of business networks as facilitators of growth across industries. They are also aware that more and more companies are relying on business networks as a clear competitive advantage, and that companies that provide customers with a means by which to effectively interact with their partners have an edge.
Since SAP is the leading provider of business software in the market today, it was a logical step for them to invest in a company like Crossgate that provides business integration services. In fact, the importance of technological and IT solutions that allow business partners to interact is supported by several prominent industry studies. According to one study, more than two-thirds of respondents concurred that the implementation of new technologies has aided their business relationships. Many businesspeople added that these technologies also help cut costs and increase revenue.
The truth is that business networks are more important than they have ever been; systems and services that allow business networks to collaborate with each other give companies a clear competitive advantage. Crossgate delivers this advantage by proving a service that encourages operational excellence regardless of process, industry, or even a partner’s network capability.
The sizeable investment from SAP will reportedly allow Crossgate to expand its services and put more money into research and development. Presently, more than forty thousand companies exchange data on the Crossgate business-to-business network. This number will only continue to grow with future investments and partnerships with SAP.
Plans are already in place at Crossgate to focus in on SAP core functionality, which will help them greatly expand their global business network. This not only makes them larger, but will also make them faster and more versatile. And best of all they will be able to provide greater value to their customers, suppliers, and business partners.
Though they are in a highly competitive, rapidly changing industry, Crossgate has been steadily growing for several years now. As we mentioned, they currently have more than forty thousand customers in more than ten vertical industries. Some of their largest clients include: Continental Airlines, Brown-Forman, and Mahle, Neckermann and Olivetti.
With the investment from SAP, many industry insiders believe that the two companies have the opportunity to radically change the way business networks are used by providing customers and their trading partners an easy and efficient way to collaborate.
In the final analysis, the partnership between SAP and Crossgate has the potential to be mutually beneficial. Both companies are offering the other important services and opportunity to improve and expand existing networks. For Crossgate, the investment from an industry leader like SAP allows them to expand to keep up with growing demand. For SAP, they get to invest in a rapidly growing company within a rapidly growing industry.
