Feeds

SAP swears off buying binge

Steady as she grows

High performance access to file storage

Sapphire SAP has assured investors and competitors it can achieve double-digit revenue growth without succumbing to an M&A rampage.

Chief executive Henning Kagermann told media attending his company's customer and partner event that SAP would reap success by making it easier for customers to consume enterprise services, not by purchasing customers through consolidation.

Kagermann's company has committed to 100,000 customers by 2010, up from its current 37,000.

Rival CEO Larry Ellison said Oracle will achieve an annual rate of revenue growth of 20 per cent through acquisition and "organic" growth. Oracle has spent more than $20bn purchasing 23-plus companies since early 2005, and last year reported a 22 per cent revenue gain - although expenses increased in lock step with revenue.

That, combined with Oracle's SAP attack tactics, and the fact SAP's last year missed expectations, delivering 13.5 per cent growth instead of the anticipated 15 to 17 per cent range, has left some on Wall St feeling unsettled over SAP's prospects.

It's probable that some have been whispering in Kagermann's ear over the judiciousness of a prudent acquisition or two to help match Oracle, in the way certain analysts in the past advised Sun Microsystems to spin out Java.

Kagermann, though, held firm. Asked about the effects consolidation and competition are having in an environment where enterprise spending is down, Kagermann said he believes SAP can hover above the forces of consolidation and slow down.

"[We are] doubling the addressable market to make it clear to investors that SAP doesn't depend on [the] growth rate of the markets, and we create our own markets. We have 25 per cent market share today. If we go for 35 to 40 per cent, we will have more than double digit growth for the next few years," Kagermann told press, analysts, and bloggers.

"Consolidation is being driven by one company [Oracle], which we are not following because it's not a good solution," he said.

SAP claims to have taken 550 Oracle customers. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.