Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Database
    • IT Management

    SAP Revenues Rise, but Oracle Trial Looms

    By
    Nicholas Kolakowski
    -
    October 27, 2010
    Share
    Facebook
    Twitter
    Linkedin

      SAP reported robust revenue and profits for third-quarter 2010, although competitive challenges and an upcoming lawsuit with Oracle both cloud what would otherwise be a crystal-clear story of economic recovery.

      SAP reported quarterly software and software-related service revenues of $3.19 billion, a 20 percent increase over the same quarter in 2009. After-tax profits reached $690 million, representing a year-over-year rise of 12 percent. The company reported growth in the United States, Asia, Europe and Latin America.

      “We saw a good mix of revenues among small, midsized and large enterprises, and we had an increase in deal volume,” Werner Brandt, CFO of SAP, wrote in an Oct. 27 statement. “On the product side, Business Analytics remains a top priority among our customers and continues to be a principal growth driver.”

      However, SAP’s earnings statement noted increased costs associated with the company’s Oracle lawsuit, as well as “acquisition-related charges” related to Sybase. SAP’s $5.8 billion acquisition of Sybase, announced May 12, was widely seen as a way for the company to expand its mobile offerings and stay competitive via new revenue streams; it marked SAP’s largest purchase since its $6.7 billion takeover of business intelligence software producer BusinessObjects in 2008.

      SAP has seen a rise in revenues of late, as businesses begin to spend more heavily on IT in the wake of a massive global recession. But the company’s competitors, including Microsoft and Oracle, have also used the brightening enterprise landscape to aggressively push their own products-pressuring SAP to sign new customers and buttress its existing offerings.

      “The experience we have gained with our more than 100,000 customers over many years tells us that they want choice, openness and innovation from their technology partners,” Jim Hagemann Snabe, co-CEO of SAP, wrote in an Oct. 27 statement. “The opposite seems to be happening as more technology companies want to lock in their customers to a single vendor on one proprietary technology stack.”

      That backhanded swipe seems directly aimed at SAP competitor Oracle, whose corporate strategy revolves around consolidating enterprise IT services.

      SAP and Oracle find themselves locked in a vicious lawsuit, with the latter claiming that SAP subsidiary TomorrowNow stole its software documentation and confidential material via unauthorized access to a customer support Website. For its part, SAP claims it never saw Oracle’s data, although it did acknowledge the illegal downloads taking place.

      In a motion filed Oct. 22, SAP’s lawyers asked a federal judge for a gag order on Oracle. Nonetheless, Oracle CEO Larry Ellison issued an Oct. 26 statement accusing Leo Apotheker, SAP’s former CEO, of “overseeing an industrial espionage scheme centering on the repeated theft of massive amounts of Oracle’s software.”

      Ellison used that statement to broadside another major competitor, Hewlett-Packard. “I don’t think [HP chairman] Ray Lane wants to risk Leo Apotheker testifying under oath as to why he allowed the theft of Oracle’s property to continue for eight months after he was made sole CEO of SAP,” he wrote. “I hope I’m wrong, but my guess is that HP’s new chairman, Mr. Lane, will keep HP’s new CEO, Mr. Apotheker, far, far away from the courthouse until the trial is over.”

      The trial is expected to begin Nov. 1.

      Nicholas Kolakowski
      Nicholas Kolakowski is a staff editor at eWEEK, covering Microsoft and other companies in the enterprise space, as well as evolving technology such as tablet PCs. His work has appeared in The Washington Post, Playboy, WebMD, AARP the Magazine, AutoWeek, Washington City Paper, Trader Monthly, and Private Air. He lives in Brooklyn, New York.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×