Is Microsoft planning IFS acquisition?

Acquisition of IFS would bolster Dynamics ERP platform

Could Microsoft be sizing up ERP software vendor IFS - rather than Salesforce.com?

While IFS CEO Alastair Sorbie assured Computing that IFS itself is looking to acquire smaller companies, rather than be acquired itself, analysts have suggested that an acquisition of IFS by software giant Microsoft is not out of the question.

A company with a powerbase of important, big-name clients - including BAE Systems, Saab, Pepsi and Sky - and yet comparatively little recognition outside its native Sweden, it could represent an attractive proposition for a Microsoft that, if rumours are to be believed, is currently planning a major shopping spree.

It comes only weeks after the rumours that Salesforce is being valued at as much as $44bn for an impending sale, with Microsoft one of the companies reportedly in the frame. But is it so far-fetched to imagine that Microsoft may prefer to bolster the value of its cloud, ERP and enterprise asset management (EAM) assets with a more modest acquisition?

Christopher Wilder, an analyst at Moor Insights and Strategy, told Computing that IFS "could be a logical next target" for Microsoft once IFS "completes the integration of its solutions with the Azure cloud platform".

Indeed, IFS highlighted its growing relationship with Microsoft and its Azure cloud platform throughout the conference with slides, such as the one shown here, leaving delegates with little doubt of the enormity of IFS' Azure integration, and plans to intensify this integration.

"Microsoft would benefit from IFS' ERP, EAM and Enterprise Service Management (ESM) solutions, loyal customer base, and the ability to provide hosted mission critical solutions," said Wilder.

He continued: "IFS would benefit by establishing company recognition outside of Scandinavia as well as access to a massive sales force and channel that would make them a strong contender in the enterprise applications marketplace."

What do you think? Another far-fetched theory, or would Microsoft be wise to pick up this lesser-known ERP vendor?