Business Objects plans Web software push

By Michael Kahn

SAN FRANCISCO (Reuters) - Business Objects SA BOBJ.O plans to make a bigger push into the fast-growing market for software delivered over the Web by introducing its own such product in the first half of 2006, Chief Executive John Schwarz said on Wednesday.

Speaking at the Reuters Global Technology, Media and Telecoms Summit, Schwarz said delivering the company's software over the Internet would help it penetrate the untapped and potentially lucrative small- and medium-sized business market.

Neither Schwarz nor the company provided any further details of the offering aimed at taking advantage of the growing popularity of Web-delivered software that for many customers is cheaper and easier to use than traditional installed applications.

"We will launch our own product in the first half of this year," Schwarz said in a telephone conference call. "The mid- to small market is extremely attractive as a greenfield opportunity."

Business Objects, based in San Jose, California, and Paris, is the market leader for business intelligence software that helps companies mine mountains of information stored in databases and use the data to detect marketing trends and patterns.

The company in 2005 pushed past the $1 billion revenue mark and now has its sights set on growing into one of the top 10 software companies in the world, Schwarz said.

He added that Business Objects will attempt to reach that goal through acquisitions, winning business on the back of new products and pushing into areas such as delivering software over the Internet as a subscription service.

The company already has made its Crystal Reports XI offering available via the Web through the eBay-like exchange of Salesforce.com (CRM.N: Quote, Profile, Research, Stock Buzz) which is a leading proponent of the Internet model for delivering software.

Companies like Salesforce have enjoyed dramatic growth as more businesses turn to Web-based software that for many is easier to maintain and more effective because users can access it from anywhere.

Schwarz said while his company was now partnering with Salesforce, it would also look to offer its own product before the end of June in a subscription model hosted by a service provider.