Feeds

SAP suffers peer pressure

Not selling what it should

Boost IT visibility and business value

SAP upset financial analysts this week with a set of disappointing, preliminary second quarter figures that showed rivals gaining on the firm.

The business applications giant lost market share of "one or two percentage points in the second quarter" to its "peer group," SAP chief executive Henning Kagermann said Thursday. Kagermann added that SAP continues to gain in terms of total market share and had not lost any deals to rivals.

Kagermann unveiled preliminary second-quarter software revenue growth of eight per cent to €621m ($791.16m) compared to the first quarter, putting SAP below expectations of €675m ($859.95m). Shares in SAP subsequently fell by seven per cent in afternoon trading.

SAP is facing competition from both Microsoft and Oracle. While Microsoft is seeing growth from its own ERP and CRM applications, it is still very much in the midst of developing a coherent business applications strategy. That makes Oracle the bigger threat, and Larry Ellison’s company has been gunning for SAP on the back of a string of acquisitions, including Siebel.

Announcing results earlier this year, Oracle was quick to point out 100 per cent year-on-year license revenue growth in Europe, SAP's strongest geographical region and home base. "It's very satisfying to be doing well right in SAP's backyard," Oracle president Charles Phillips said in a statement at the time.®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?