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

The business intelligence (BI) software vendor said it plans to integrate some of Nsite's SaaS technologies into its own product line, allowing it to release more of its products in the form of services next year.

The California-based Nsite sells its On Demand Enterprise product to 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 Centre, which includes software for tasks such as channel management, quotes and sales.

Its products use Asynchronous JavaScript and Extensible Markup Language (AJAX) technologies to deliver information faster, and can connect to Salesforce.com customer resource management (CRM) applications via web service interfaces.

The move follows growing interest in SaaS, which requires end users to have only an internet connection and little or no software installed locally. Common benefits include reduced cost of deploying and maintaining applications.

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 its 7,000 customers are signed up for the free service for 10 or fewer seats, but Business Objects hopes to grow larger, paid installations.

The company, which will take on 27,000 current Nsite customers, said it will continue to sell and support Nsite's products.

Financial terms of the acquisition were not disclosed.