SAP has acquired the intellectual property rights for Redwood City, Calif.-based Coghead, a Platform as a Service provider, SAP said yesterday.
SAP plans to use the technology as an internal tool and at this point has no plans to continue selling Coghead's technology commercially, according to an SAP spokeswoman. But SAP will be bringing the majority of Coghead's engineers into SAP operations, she said.
SAP's Leo Apotheker said in a previous interview that he doesn't think customers want to -- or should -- run everything in the cloud. But under the leadership of Wookey, who was tapped to lead the development of on-demand applications for large companies, SAP could give customers a choice.
Platform as a Service is an externally hosted service providing a complete platform to create, run, and operate applications, including development tools, administration and management tools, runtime engines, data management engines, security facilities, and user-management services, according to Forrester Research.
Coghead provides a programming model and tools but relies on Amazon, Rackspace Hosting and similar vendors to host computing and storage infrastructure, according to a recent Forrester Research report.
The company was founded in May 2003, funded in part by SAP Ventures, the vendor's venture capital arm.
Coghead's existing customers have until April 30 to find a new service provider, SAP said, and they will be able to access Coghead until then.
SAP closed the deal on February 13.
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