Year in review: Enterprise software gets smarter

Go where the money is. That's apparently just what the big boys did, as a number of industry titans in enterprise software jumped into business intelligence software with some hefty acquisitions.

This year, Oracle kicked off the big spenders' buying spree by announcing its Hyperion Solutions deal valued at $3.3 billion in February, followed by SAP in October with its plans to acquire Business Objects in a deal valued at $6.8 billion. And last month, IBM announced its intent to acquire Cognos for $5 billion.

The market in business intelligence software, or business performance solutions, is projected to rise 11 percent through 2010, according to Forrester Research.

Enterprise software players tinkered with their on-demand efforts during the year, with SAP unveiling Business ByDesign, its long-anticipated on-demand service.

On-demand efforts by other enterprise software providers included NetSuite filing for its long-awaited IPO, and pioneer Salesforce.com positioning itself as a platform for applications on demand.

Google expanded its GoogleApps effort beyond small businesses and into Corporate America via its Capgemini partnership.

And as the enterprise software industry evolved, a changing of the guard was also in the works.

SAP's Shai Agassi, president of its product and technology group and a rising star once viewed as a potential heir apparent to the CEO, resigned in March. Agassi, who left after the current CEO Henning Kagermann extended his contract term, is now putting together a company involved with electric cars.

In November, Adobe Systems Chief Executive Bruce Chizen announced his resignation, after having spent seven years at the helm. Chizen, however, will remain as a strategic adviser to the company until the end of 2008.

Enterprise software companies had their share of drama this year. Two of the more notable cases involved Oracle.

Earlier this year, Oracle filed a lawsuit against archrival SAP and its wholly owned subsidiary TomorrowNow, alleging that third-party support and maintenance company TomorrowNow pilfered its proprietary software code beyond what Oracle's former customers' contracts allowed. The companies have a status hearing with the judge scheduled for early next year, but in the meantime, SAP is considering selling its TomorrowNow business.

And in another squabble, Oracle made an unsolicited bid for middleware rival BEA Systems in October. Oracle offered up $17 a share, or $6.7 billion in cash, but BEA wanted $21 a share from any prospective suitor to engage in buyout negotiations. Oracle has since walked away from the deal, though investors are not convinced the software maker is gone for good.