Saturday, July 15, 2006
SAP Gets Zapped - Motley Fool - MSNBC.com
SAP Gets Zapped - Motley Fool - MSNBC.com: "The big concern: Is this miss mostly a one-time event, or does it portend a long-term problem?
Actually, there is evidence that the latter is the case. Why? A big problem is competition from Oracle(Nasdaq: ORCL). In fact, Oracle posted strong preliminary results for its second quarter. For example, its revenue is expected to have increased by 25%.
Over the past few years, Oracle's strategy has been to buy a variety of major companies in the ERP space -- spending nearly $19 billion on such acquisitions. This adds to its product offering but also means more opportunities to find cost savings. SAP, on the other hand, has eschewed acquisitions. "
Actually, there is evidence that the latter is the case. Why? A big problem is competition from Oracle(Nasdaq: ORCL). In fact, Oracle posted strong preliminary results for its second quarter. For example, its revenue is expected to have increased by 25%.
Over the past few years, Oracle's strategy has been to buy a variety of major companies in the ERP space -- spending nearly $19 billion on such acquisitions. This adds to its product offering but also means more opportunities to find cost savings. SAP, on the other hand, has eschewed acquisitions. "
