Feeds

SAP swears off buying binge

Steady as she grows

Protecting users from Firesheep and other Sidejacking attacks with SSL

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. ®

Choosing a cloud hosting partner with confidence

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
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.