Will BMW sell Softlab?

Softlab, BMW's wholly owned software development subsidiary, has sold its automotive OEM software and services group to IT behemoth Computer Services Corporation. Only the German automotive businesses will be retained, to serve BMW's German car plans.

Softlab will now concentrate on developing CRM and supply chain products for the telco, utility, retail and finance sectors.

Why would Softlab sell the only part of its operation which is relevant to the parent company's core business? Does BMW really see itself holding onto a pure-play CRM vendor long-term?

Softlab's sales and marketing manager Ameet Dave puts it like this: "BMW has a commitment to growing Softlab as a profitable business. They have given us considerable investment and acquisition capital."

There are synergies, he said, between Softlab's CRM experience and BMW's ebusiness project, Top Gear. He also asserted that project management expertise developed from BMW helped Softlab to avoid the failed implementations which dog many CRM vendors.

However, BMW will surely be tempted to sell or float Softlab if the company delivers on its ambitious CRM plans, and market sentiment towards tech companies improves.