Business Objects will acquire Nsite Software, which develops a software-as-a-service (SaaS) delivery platform, in a move to offer more of its own products over the Internet, the companies announced.

Business Objects said it will integrate some of Nsite’s SaaS technologies into its own product line, allowing it to release more of its business intelligence software in the form of services next year.

Financial terms of the acquisition were not disclosed.

The move follows growing interest in SaaS, which requires end users to have only an Internet connection and little or no software installed locally. The goal is to reduce the cost of deploying and maintaining applications.

Nsite, based in Sunnyvale, Calif., sells a product called On Demand Enterprise, used by companies to develop applications that can be accessed over the Web through a browser.

It also offers a library of programs for delivering over the Internet, called Application Center, which includes software for tasks such as channel management, quotes and sales. And it offers tools for building and customizing SaaS applications.

Its products use Ajax technologies to deliver information faster, and can connect to Salesforce.com’s CRM applications via Web service interfaces.

Business Objects launched it first on-demand offering in April with CrystalReports.com, for creating and sharing business reports over the Web through a browser. Many of the 7,000 customers are signed up for the free service for 10 or fewer seats, but Business Objects hopes to grow larger, paid installations.

Business Objects, which will take on 27,000 current Nsite customers, said it will continue to sell and support Nsite’s products.

-Jeremy Kirk, IDG News Service (London Bureau)

Related Links:

• Business Objects Launches Data Integration Tools
  
• Microsoft Introduces Software for SaaS Enablement
  
• Microsoft Steps Up SaaS Efforts in Europe

Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.