Friday, July 21, 2006
InformationWeek | SAP Q2 Earnings | SAP Sales Growth Slows While Profits Jump in 2Q | July 20, 2006
InformationWeek SAP Q2 Earnings SAP Sales Growth Slows While Profits Jump in 2Q July 20, 2006: "Some 310 customers�110 in this year's first half�have taken advantage of SAP's Safe Passage program to migrate to SAP software from Oracle applications, according to SAP. Oracle, nevertheless, has been picking up market share, even according to SAP's own calculations. While SAP's share of the enterprise application market increased from 21.4% to 21.7% between its first and second quarters, SAP CEO Henning Kagermann acknowledged that Oracle increased its share of the market from 8.8% to 10% during the same time.
Kagermann said ERP software vendors have been engaging in aggressive price competition and discounting in an effort to gain market share, although he declined to say how deep those discounts run.
Enterprise applications aren't the only battlefield between SAP and Oracle. Earlier this week Oracle president Charles Phillips told industry analysts that sales of its Fusion middleware products exceeded $1 billion in its fiscal 2006. Thursday Kagermann said SAP's NetWeaver middleware, a key component of its ESA blueprint, is winning market acceptance with some 31,000-plus NetWeaver components installed at customer sites. He added that NetWeaver accounted for 21% of SAP's revenue in the first half of 2006. "
Kagermann said ERP software vendors have been engaging in aggressive price competition and discounting in an effort to gain market share, although he declined to say how deep those discounts run.
Enterprise applications aren't the only battlefield between SAP and Oracle. Earlier this week Oracle president Charles Phillips told industry analysts that sales of its Fusion middleware products exceeded $1 billion in its fiscal 2006. Thursday Kagermann said SAP's NetWeaver middleware, a key component of its ESA blueprint, is winning market acceptance with some 31,000-plus NetWeaver components installed at customer sites. He added that NetWeaver accounted for 21% of SAP's revenue in the first half of 2006. "
