Thursday, April 20, 2006

SAP keeps beating Oracle and Microsoft on their own turf

SAP just keeps beating Oracle and Microsoft on their own turf and as a result analysts are beginning to question the strategy of the two US companies in building competing business applications units through major acquisitions.

For SAP yet egain delivered powerful results thanks to continued progress in the US market. Overall their software sales increased 22% to €528 million from €434 million in 2005, largely driven by a 25% rise in the US to €165 million, and an 8% increase in German sales.

SAP, the world's largest business software maker by market share, reiterated its financial outlook for 2006, including its expectation for a jump in software sales between 15% and 17%.

That looks hard to beat. The real question is how the business applications market will look in 2 or 3 years, by which time oracle and Microsoft will have fully integrated their acquirees technology. SAP needs to drive as much market share gain between now and then while they still have the edge. I guess that's their strategy.

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