Wednesday, February 01, 2006
SAP faces ESA crunch year - Computer Business Review
SAP faces ESA crunch year - Computer Business Review: "With the ESA vision announced just two years ago, and the technology needed to enable it still being developed, it is early days, but SAP is confident about its progress. Mr Kagermann pointed out that, during 2005, NetWeaver software revenue amounted to E480 million ($584 million), and 30% of that was from standalone NetWeaver sales. In addition, he said the company has logged 1,150 R/3 contract conversions.
However, those figures represent a tiny proportion of the customer base of close to 30,000 and the company's overall 2005 software license revenue of E2.78 million ($3.14 million). SAP's main challenge during 2006 will be to persuade more customers to start adopting the new technology. The risk is that if adoption is slower than anticipated, it will give Oracle time to catch up."
However, those figures represent a tiny proportion of the customer base of close to 30,000 and the company's overall 2005 software license revenue of E2.78 million ($3.14 million). SAP's main challenge during 2006 will be to persuade more customers to start adopting the new technology. The risk is that if adoption is slower than anticipated, it will give Oracle time to catch up."
