Expect SAP to Buy

By Renee Boucher Ferguson  |  Posted 2006-10-19 Print this article Print

Some Companies"> "We looked at the claim—Oracle claimed 88 head-to-head wins against SAP—and they only identified certain names, which we analyzed. Our analysis is that we chose not to compete in one deal; six were not competitive deals; 12 we had no record of, we were not in the game; seven were not a win against us; and four were losses to us."

Apotheker said that to put those numbers in perspective, out of 247 competitive head-to-head deals against Oracle, SAP won 209.
"That is an 85 percent win rate," he said.
Last month, SAP spent a significant amount of time fending off Oracles claims that its software license grew 80 percent, while SAPs grew eight percent. SBQs Williams believes that for SAP to increase growth it may have to modify its organic growth strategy and buy some companies. Service-oriented architecture is big on SAPs agenda. Click here to read more. "With more than $1.3 billion in free cash flow and $3.5 billion in cash and marketable securities, TBR believes SAP may attempt a string of smaller acquisitions to continue to fill in its portfolio with products it can directly leverage for revenue growth, such as compliance, analytics and vertical industry expertise," wrote Williams. "Should the scope of potential acquisitions expand to acquiring market share, SAP may find itself bidding against Oracle." Oracle, which has amassed more than 20 acquisitions over the past two years, has said recently it will continue to buy companies. Despite its ongoing row with Oracle, SAP said its on target to with its 2010 aspirations of generating 40 to 45 percent of order entry from the midmarket—a big area of focus for SAP and Oracle as the enterprise deals shrink ever smaller. The growth is evidenced by SAPs customer and channel partner growth in the quarter—22 and 36 percent respectively—and is predicated on the introduction of new products in the next two-year time frame, according to Kagermann. "At the end of 2005, we will enter the first pilot customer testing of our enhanced midmarket platform, our next All-in-One version delivered on the mySAP ERP 2005 platform [SAPs new services-enabled ERP suite],"said Kagermann. "[SAP will also introduce] a new midmarket product featuring new deployment models with a flexible architecture that helps customers better compete." During the Q&A session of the Q3 earnings call, when pushed for more specifics on the timeframe of the product with a new delivery model, Kagermann said more clarification would be provided during a December analyst event in Las Vegas. But he hinted just a bit at what SAP is up to. "This will not have a normal ramp up, thats the reason I mentioned alternative deployment models," said Kagermann. "If it were just on premise, it would be a normal ramp up, but that is not the case. There is some embedded IT service in it, so from that point it will be a different type of launching to the market. In this case we will do it carefully and do everything right." Again, Kagermann hinted: "Give us a little time … because we will not stay in CRM only. We are working on that and will give more indication later in the year." On-demand ERP for the mid-market, perhaps? Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.


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