Saturday, 21 February 2009

SAP buys cloud computing startup Coghead

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Yesterday morning, Network Computing reported that SAP is in the process of buying Coghead, a startup in the niche field of cloud computing. This indeed is a bad news for cloud computing: Coghead - a venture-backed, online application development platform - is closing, leaving customers with a problem to solve.

However, there is a silver lining to this bad omen: SAP bought Coghead's intellectual property and hired its engineering team in an acquisition that closed last week. SAP will not continue selling the service, opting to use Coghead only as an internal tool for now (Coghead currently runs on Amazon Web Services), but the move marks the latest chapter in software company's on-and-off interest in the cloud.

While customers can download data, applications built on Coghead aren't as mobile. Customers can take the XML out that describes their application, but the reality is that only runs on Coghead, so customers will need to rewrite their application with something different. Coghead competitors like Caspio, TrackVia, and Intuit QuickBase are already clamoring for Coghead's customers, which include the University of Southern California Marshall School of Business, insurance company Colonial Group International, and Taiwan-based freight forwarding company Morrison Express.

Check out this article on Networking Computing site for more details.

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1 comment:

Jane McCarty said...

Coghead customers really got in trouble. But the situation is not that bad.

I mean some vendors have already
offered help and some have even developed tools for migration process automation. This can really make data transition easier.