The News: SAP announced it had completed its acquisition of LeanIX, a provider of enterprise architecture management (EAM) software. LeanIX offers software as a service (SaaS) solutions that are designed to help organizations to visualize, assess, and manage the transition toward their target IT architecture. The combined offering is designed to provide a comprehensive foundation for AI-enabled transformation.
You can read more details about the partnership at the SAP website.
SAP Announces Completion of LeanIX Acquisition
Analyst Take: SAP announced the completion of its acquisition of LeanIX, a provider of EAM software in early November 2023. The company’s SaaS offerings are designed to provide increased transparency into the applications and IT systems that are used to handle enterprise workflows, enabling better decision-making, particularly for organizations that are undergoing digital transformations and moving data and workflows to cloud-based architectures.
SAP and LeanIX announced the acquisition in September 2023, though no terms and price for the acquisition was revealed. The acquisition comes about a year after the two companies formed a strategic alliance.
Enabling Greater Visibility to Enable Accurate IT Assessments
According to LeanIX, the company helps organizations gain more visibility into their current IT landscape, enabling them to visualize interconnections, assess support of their business capabilities, and manage their continuous transformation. This visibility is especially important when conducting a migration from an on-premises-based architecture to a hybrid or cloud-based environment while preparing the company for AI-enabled technology integration.
In particular, the acquisition of LeanIX’s EAM aligns with the business process management capabilities that SAP acquired in 2021 when it acquired Signavio. The result is a comprehensive suite of services that provides CIOs with maximum visibility of their organization’s technology footprint and workflows while offering the tools needed to complete these migrations using SAP’s cloud services management offerings.
Rise of SAP’s Business Transformation Suite
SAP is increasingly positioning itself as a provider of business transformation services in addition to being an AI-enabled software platform. Acquiring LeanIX allows SAP to help its customers make digital transformations through its RISE with SAP cloud offering targeted at enterprises, as well as its GROW with SAP offering, aimed at mid-market companies.
Ultimately, digital transformations require CIOs and other transformation leaders to fully understand the organization’s IT landscape, processes, and workflows prior to designing and implementing a transformed IT architecture, which can include AI-enabled applications and workflows. This understanding is especially important as organizations contend with system architectures that include a variety of applications and systems that must be connected to enable seamless data migration and AI-enabled workflows.
This acquisition should help SAP actively compete against other large cloud hyperscale companies, each of which are trying to capture the services revenue attached to transformation, as well as the ongoing management and maintenance revenue, particularly as organizations integrate AI-enabled technology and workflows.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Keith Kirkpatrick is Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
