Feeds

Rattled SAP bites back at Ellison

Executive handbags

The Power of One Infographic

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. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP and Microsoft prove it again: Big Business Doesn't Create Jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.