SAP Acquires Coghead, A Cloud Computing Company
SAP (NYSE:SAP), the company behind one of the most popular enterprise software is getting into the cloud computing game through the acquisition of Coghead. Coghead will be shutting down their business and letting go of customers as a part of the acquisition. SAP bought out Coghead’s intellectual property and hired their engineering team. SAP doesn’t plan on reselling Coghead’s service anytime soon.
“SAP is one of the premier tech companies in the world and we’re really happy this transaction took place,” stated Paul McNamara, Coghead’s CEO. “However, the Coghead business model is not in keeping with the kinds of things that SAP wants to do.”
Coghead’s primary service was to allow customers to develop and host database applications using a simple drag & drop interface. Coghead’s service will run through April, but after that it is safe to assume that the service will no longer be around.
Since Coghead started a few years ago, they raised about $13.7 million from El Dorado Ventures, American Capital Strategies, Western Technology Investment, and SAP Ventures.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry