FT.com / Companies / IT - SAP criticises Oracle for aggressive style

FT.com / Companies / IT - SAP criticises Oracle for aggressive style

SAP criticises Oracle for aggressive style
By Francesco Guerrera and Michael Gassmann in Atlanta

Published: April 25 2007 22:09 | Last updated: April 25 2007 22:09

The chief executive of Germany’s SAP, the world’s biggest maker of business software, has hit out at its arch-rival Oracle, attacking the US group’s aggressive style and criticising its acquisitive strategy.

The comments by Henning Kagermann come a month after Oracle sued the German company, alleging “corporate theft on a grand scale” and will escalate an increasingly bitter war between the two companies.

Mr Kagermann rebuffed suggestions that SAP was too defensive and said it would not follow Oracle’s aggressive tactics, which have included attacks on the company’s performance by Larry Ellison, the US group’s chief executive.

“They ask me why we are not adopting the same style in talking and sometimes not delivering; why should I? [...] We are never defensive, we just have our style,” he said in an interview with the Financial Times.

Mr Kagermann declined to comment on the lawsuit, which centres on the activities of a Texas-based arm of SAP, reiterating the company would “aggressively defend” it in a formal response due out in a few weeks.

The competition between SAP and Oracle has intensified in recent years as the German group made a push into the US market, where it has experienced strong growth. Oracle responded with a $19.5bn takeover spree to expand outside its core database business and into software for large businesses, where SAP remains the market leader.

Mr Kagermann said that organic growth remained SAP’s preferred strategy. He added that Oracle’s acquisitive streak would force the US company to spend time and money integrating products and people.

Mr Kagermann sought to quash recent rumours of a buy-out of SAP, saying he had “no indication of interest from private equity”. He stressed that the company’s three founders were committed to retaining their 32 per cent stake.

He deflected questions over whether he will stay on after his contract expires in 2009.

Copyright The Financial Times Limited 2007