Feeds

SAP suffers peer pressure

Not selling what it should

Build a business case: developing custom apps

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.®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

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.
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.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?