Feeds

Rattled SAP bites back at Ellison

Executive handbags

Top 5 reasons to deploy VMware with Tegile

A slanging match has erupted between Oracle and SAP as the Silicon Valley giant tries to burnish its business apps credentials.

Oracle chief executive and founder Larry Ellison used the company's positive financial results report Tuesday to pile PR pressure on its market-leading German rival. He said Oracle had "leapfrogged" SAP in several sectors.

"SAP appears to be rethinking their strategy as they lose application market share to Oracle...[SAP CEO] Kagermann is talking about an acquisition strategy to augment SAP's slowing organic growth," he claimed.

Oracle has spent almost $20bn on acquisitions in the last two years.

Of Oracle's next-generation Project Fusion applications suite, Ellison said: "We're going to be out in the marketplace for a full two years before SAP's next new applications. It's a tremendous opportunity for us to get way ahead of them."

SAP, having previously maintained a teutonic silence in response to Ellison's sniping, took the unusual step of calling his comments "inconsistent and misleading".

SAP rubbished Ellison's product claims, saying: "Oracle's next-generation applications exist only in PowerPoint and won't be delivered until 2008 or beyond. In January, Oracle claimed they were halfway to Fusion and two weeks ago they said they were not even halfway done."

It contrasted its "planned, regular functionality enhancements without the need for major upgrades through 2010", with Oracle's higher-risk vision.

But the conclusion investors may draw from the exchanges is that SAP is rattled. Oracle's results yesterday were tasty, beating most analysts' expectations. The numbers are being widely interpreted as a vindication of Ellison's acquisition masterplan.

Revenues rose 30 per cent to $3.6bn, with an accompanying profits hike of 29 per cent to $670m, or $0.13 per share. The $228m-worth new applications licence sales were 80 per cent up on the same quarter a year ago, helped particularly by the Siebel buy-up and big wins from the likes of Wal-Mart.

Oracle's shares jumped 9.1 per cent in after-hours markets yesterday. SAP stock was steady in early Frankfurt trading today. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.