Microsoft, SAP Partner on 'Mendocino'

Microsoft is teaming up with German software developer SAP to create a new application, code-named "Mendocino," which enables Microsoft Office to hook directly into SAP's enterprise resource management tools. The goal is to diminish wasted time that is spent searching for information and switching between applications.

Specifically, Mendocino will integrate SAP processes such as time management, budget monitoring and travel and expense management into Office menus. Users will also be able to synchronize data between Exchange Server and SAP, retrieve SAP information from within Excel, and submit data via Microsoft's InfoPath forms.

"I see the collaboration as extension of Microsoft's "smart client" concept. Microsoft's "Elixir" project is conceptually similar. Recall that Microsoft once considered a SAP acquisition, and the partnership makes even more sense," noted Jupiter Research senior analyst Joe Wilcox.

As pat of the deal, Microsoft and SAP will resell each other's business solutions. But SAP isn't stopping with Redmond; the company has also forged a partnership with Macromedia to create rich front-end applications to access SAP business data.

"The Microsoft approach favors Office, while the Macromedia arrangement supports existing clients, the Web browser being one. No reason why the two couldn't coexist, particularly given the popularity of browsers and Office," says Wilcox.

A final release of Mendocino is expected to reach customers by the end of 2005.