They also said they would look at integrating other SAP components, such as a general ledger, into Misys BankFusion.
An element of the collaboration is the integration of SAP’s CRM suite into Misys’ retail banking software set for processes such as customer targeting, attraction, and retention.
London, UK-based Misys has long been a sleeping giant with a 1,200-strong customer base built up over 27 years, which includes the world’s top 50 banks. But an indifferent financial record led the previous management to depart, and Mike Lawrie, a former CEO at Siebel took over as chief executive last year and began a drive to turn the company around.
Lawrie said the alliance with SAP would allow it to reach markets it had not been able to reach previously. He said application know-how and market presence from SAP combined with Misys’ domain expertise and market-leading position in banking software would enable global banks to get the best technology and a broader set of software.
The agreement comes only a week after an alliance announced by SAP with Brussels, Belgium software vendor Callatay & Wouters to integrate its core banking product Thaler with SAP analytics capabilities on a business process platform for mid-sized banks.
At the top end of the market, SAP has had a long alliance with services giant Accenture.
Behind the push for alliances in the banking software market is SAP’s nervousness at Oracle’s ownership of a majority stake in fast-growing Indian banking software vendor i-flex solutions, which gives it a powerful tool for penetrating the lucrative banking vertical.
Our View
Without financial evidence of Lawrie’s turnaround, Misys shares continue to languish and it can only be SAP’s reluctance to sanction big acquisitions that prevents it from launching a bid. Misys is only worth 1bn pounds ($2bn) on the stock market and the cost would be considerable reduced by the sale of its US-based healthcare operation.
