SAP announced their latest quartery results and pronounced a positive outlook on 2006. Both revenues and earnings climbed nicely as SAP continued to take market share from Oracle.
SAP forecast full-year 2006 product revenues to increase in a range of 13% to 15% compared to 2005, based on its expectation for software revenue growth in a range of 15% to 17% compared to 2005.
And they're getting aggressive about new product launches and new directions as SAP goes after the small and medium sized business market. SME's are fast becoming key growth markets for major systems vendors including IBM and Microsoft.
But, perhaps most telling is the market share gains SAP made at the expense of Oracle. With software revenues rising across the globe, SAP extended its market share to 62% by the end of the fourth quarter, a gain of 7% on the same quarter in 2004.
In the US, Oracle’s home turf, SAP took advantage of disruption at its rival which is reorganising after snapping up most of its smaller opposition in a $19bn shopping spree. SAP increased US market share to 47%, 10% higher than a year ago.
Oracle had better move fast to launch Fusion, because SAP is not standing still. And SAP are to hire another 3,500 employees this year. They're a formidable leader in the enterprise apps space.
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