Informatica's Sweet Deal With SAP Doesn't Mean Merger

Informatica(INFA Quote) may be getting cozy with SAP(SAP Quote), but its sweetheart deal does not signal a future merger.

SAP will embed Informatica's data integration software into SAP applications and its NetWeaver platform, enabling its customers to integrate and track data from non-SAP, third-party and legacy systems, the companies announced Monday.

Investors had been abuzz on Monday that the agreement suggested a merger between the two companies was closer to a reality.

"This is a technology that neither SAP nor Oracle -- nor other partners -- wants to build," says David Yockelson, vice president of research for the 451 Group, which specializes in technology research. "The significance of this relationship is not indicative that there's a deal about to happen." ...