With IBM in St. Louis; Shai Agassi’s Blog | AMR Research
The St. Louis Chamber of Commerce wasn’t likely pleased to have its hometown crowned “America’s Most Dangerous City” by City Crime Rankings. With that as a backdrop, we expected to hear the “Bad Boys, Bad Boys” theme song from COPS as we de-planed. The closest we came to danger, though, was when a taxi nearly ran a red light as our own taxi was going through the intersection. If the other driver hadn’t jammed on his brakes, he would have hit us broadside and knocked our vehicle into another galaxy.
Instead of danger hovering on every street corner, St. Louis was eerily quiet. We arrived early on Sunday with plans to attend the Cardinals-Cubs baseball game, an event that was postponed due to the unfortunate death of Josh Hancock, a relief pitcher for St. Louis. As we walked through the city on our quest to find somewhere televising the Red Sox-Yankees game, we all commented at how empty the streets and parks were despite blue skies and the 85-degree temperature.
When the work week began, there was a slight increase in traffic, though there weren’t a lot of pedestrians milling about along the route that took us from Fourth Street to Washington Street and the convention center. It was as though the entire city had packed and moved to the suburbs, leaving only the buildings behind.
We were in town to attend PartnerWorld 2007, IBM’s annual conference for business partners. The event drew more than 5,000 attendees who came to hear a packed agenda of speakers ranging from Sam Palmisano, IBM’s chairman, president, and CEO, and other top IBM executives, to race car legend Mario Andretti and Dr. Laura D’Andrea Tyson, senior advisor to the McKinsey Global Institute and former national economic advisor to President Clinton.
After the completion of the morning’s general session, we met with Murray Mitchell to talk about some of the new Global Business Services’ initiatives for small and midsize businesses (SMBs). The first item on our agenda was to discuss the joint IBM-SAP press release from SAPPHIRE announcing IBM would be reselling All-in-One in 12 countries. The reseller relationship began last June in the United States. Since then, it has been extended to Europe and Asia.
SAP: “Significant SMB opportunity”
We talked about SAP’s plan to reach 100,000 customers by the end of the decade. While I have written that I think it’s too ambitious a target if done organically (no acquisitions), Mr. Mitchell said that SAP represented a significant part of the SMB opportunity. The challenge remains the same, though, namely building a volume indirect channel.
IBM has been recruiting resellers to market a bundle of All-in-One as well as IBM hardware, software, and services. It looks like there are three types of arrangements today. These include referrals (a partner receives a fee for passing a deal to IBM), teaming (IBM helps to close the deal), and one where the reseller does everything from identifying the lead to staffing the engagement).
It appears to be going well. While we knew better than to ask about revenue or installations, Mr. Mitchell did say that that GBS’ SMB business was enjoying “double-digit growth.” Most of the applications growth is coming from ERP, though the CRM business is growing thanks to some Siebel engagements and call center projects. IBM is also doing quite a bit of web and portal development engagements, too.
Mr. Mitchell also said that IBM has developed a new IT strategy initiative for smaller businesses. Basically, the company has condensed a typical 8-to-12 week engagement down to 2-to-3 weeks and is making it available for a flat $50K fee. The primary targets are companies with new CIOs.
Resell Oracle, too?
We did ask about Oracle. To date, IBM’s only other ERP reseller agreement is with Lawson Software. IBM has yet to sign a reseller agreement with its database and tools rival, despite the large IBM base that Oracle inherited through its various acquisitions (particularly JD Edwards). It will be more challenging to bring the Oracle relationship anywhere close to the level of the SAP partnership. IBM obviously wants to retain its database, middleware, and hardware customers, while Oracle reps want to replace the DB2 and WebSphere products with its own software. But IBM also has a lot invested in Oracle’s JD Edwards customers and says it is committed to them for the long run.
There may be a huge opportunity for IBM though as the arbiter for the growing number of joint SAP-Oracle customers. As we said last week, when Oracle completes the Hyperion acquisition, it will add 4,000 to 4,500 SAP customers to its base. Many SAP customers still have their Siebel and PeopleSoft applications, too. As SAP and Oracle battle for account control, CIOs may turn to IBM for help sorting it out. IBM will happily supply the software and services needed to link the warring parties via a service-oriented architecture (SOA).
IBM to roll out SIF to other industries
Speaking of SOA, we also met with Jan Jackman to talk about IBM’s Store Integration Framework (SIF). Built on IBM WebSphere, the framework is designed to integrate data and business processes among enterprise applications. It’s aimed at lowering total cost of ownership and streamlining customer interactions. The framework has been adopted by more than 30 retailers for deployment in close to 36,000 stores. Circuit City and Giant Eagle are among those using it.
In addition to a wide range of IBM software products, SIF has attracted 67 validated business partners offering software for order management, point of sale support, loss prevention, RFID tracking, workforce and task management, deli management, and dozens of other uses.
As Ms. Jackman described it, IBM is now looking to roll SIF to other industries—“anything with distribution outlets that are customer facing.” First on the list appears to be branch banking. Retailers often use SIF to link POS systems to kiosks, handheld devices, and the like. Banks could use it to market tailored products and services to customers through automated teller machines. Other potential verticals include automobile dealers, cell phone stores, and healthcare facilities.
If it’s an IBM event, Axentis must be nearby
We last saw Axentis CEO Bob Hoyt at IBM’s fall symposium for the venture community. Sure enough, he was in St. Louis for PartnerWorld. He was there to pick up a Beacon Award for his company’s achievements, one of several IBM awarded to its top business partners.
Axentis provides software to manage governance, risk, and compliance (GRC), and makes it available in on premise and on demand modes. In the past four months, the company has brought 70,000 users live, bringing the total customer base to 740,000 seats. Implementations can be completed in 2 to 6 weeks.
The GRC market is heating up, attracting entrants from the large ERP vendors, like SAP and Oracle, to content providers and content management firms. Look for more GRC coverage in an upcoming First Thing Monday and in our upcoming book, Risk! Navigating an Uncertain World.
Shai surfaces in digital media
Last week at SAPPHIRE we joined the multitudes asking SAPers, “What is Shai going to do next?” Shai Agassi, former president of SAP’s Products and Technology Group, resigned on March 28. According to friends, Mr. Agassi plans to take 100 days off before deciding what to do next. He will not be lacking for opportunities.
In the meantime, he’s started a blog, “The Long Tailpipe,” which can be found on http://shaiagassi.typepad.com. The title is part homage to “The Long Tail” by Chris Anderson. In an early posting, Mr. Agassi refers to “long tail business processes” enabled by NetWeaver and the Business Process Platform. The title also references the future electric car market and the connection of the “virtual tailpipe” to electric power.
Readers hoping to get the “what really happened” inside story will be disappointed. He does offer good insights on enterprise software and alternative energy, though.
Next stop: Austin and Boston
The week starts with a quick flight back from Churchill Downs and the Kentucky Derby, and quickly shifts back to business. First stop is a Wipro conference in Austin, TX. Last stop is a Tata Consultancy Services briefing in Boston. I wonder if they will have Mint Juleps, too.
In the meantime, what do you think? Can IBM and Oracle be partners in the field? Is there a role for IBM in joint SAP-Oracle accounts? What will Shai do next? Please let me know—brichardson@amrresearch.com.
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Friday, May 04, 2007
Thursday, April 26, 2007
FTD.de - IT+Telekommunikation - Nachrichten - SAP kanzelt Rivalen Oracle ab
FTD.de - IT+Telekommunikation - Nachrichten - SAP kanzelt Rivalen Oracle ab
Der deutsche Softwarekonzern SAP wirft dem Wettbewerber Oracle unsportliches Verhalten vor. SAP-Vorstandssprecher Henning Kagermann wehrte sich in einem Gespräch mit FTD und Financial Times zudem gegen den Eindruck, eine Klage von Oracle wegen Verletzung des Urheberrechts zwinge SAP in eine Verteidigungshaltung.
Der deutsche Softwarekonzern SAP wirft dem Wettbewerber Oracle unsportliches Verhalten vor. SAP-Vorstandssprecher Henning Kagermann wehrte sich in einem Gespräch mit FTD und Financial Times zudem gegen den Eindruck, eine Klage von Oracle wegen Verletzung des Urheberrechts zwinge SAP in eine Verteidigungshaltung.
Wednesday, April 25, 2007
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
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
Tuesday, April 24, 2007
SAP United States - SAP and Microsoft Deliver Extended Road Map for Duet™ Software
SAP United States - SAP and Microsoft Deliver Extended Road Map for Duet™ Software
Continued Commitment to Empowering Information Workers with Simplified Access to Key Business Data and Processes Through Microsoft Office
Continued Commitment to Empowering Information Workers with Simplified Access to Key Business Data and Processes Through Microsoft Office
Monday, April 23, 2007
FT.com / Companies / IT - SAP boosted by strong sales growth in the US
FT.com / Companies / IT - SAP boosted by strong sales growth in the US
SAP boosted by strong sales growth in the US
By Gerrit Wiesmann in Frankfurt
Published: April 23 2007 15:27 | Last updated: April 23 2007 15:27
SAP, the world’s biggest maker of software for business, took a first step to restoring investor confidence by announcing strong growth in the first quarter of the year while pledging to face down a lawsuit from a rival.
The stock traded 2.5 per cent higher at €37 per share late on Friday after the German company said sales of software and related services hit €1.52bn early 2007, a 15 per cent rise when adjusted for currency effects.
Henning Kagermann, chief executive, said strong sales growth in the US helped push SAP’s market share to 25.1 per cent, up 0.6 points from late last year, and again vowed to raise software sales by 12-14 per cent 2007.
The Walldorf-based group that started with programmes to help big businesses manage inventories or customer details twice last year missed quarterly growth targets, raising fears it was failing to lure smaller companies.
SAP in February said profitability would suffer 2007 as it earmarked €400m over two years for a new web-based software service for small companies – a segment being contested by US rivals such as Oracle and Microsoft, too.
The German company’s share price fell by more than one fifth from €42 at the start of the year, a slide compounded by a lawsuit filed by arch-rival Oracle alleging SAP had stolen software ideas from its computer systems.
Mr Kagermann said SAP would “aggressively defend” itself against claims a subsidiary misused Oracle customer gateways. “We have no intention to settle,” he said when asked if SAP might see a quick resolution.
At the same time, he brushed off the recent departure of chief software developer and possible successor, Shai Agassi. He noted US success was the work of sales boss Léo Apotheker, now deputy chief executive.
Investors seemed so cheered by positive news and robust words from Walldorf that they appeared largely to forgive first effects of the investment programme for the “AS1” project announced two months ago.
Building computer centres to “host” customer data took €20m off earnings last quarter, SAP said. Operating income still rose 6 per cent to €433m as total sales climbed 6.1 per cent to €2.2bn, just shy of forecasts.
Copyright The Financial Times Limited 2007
SAP boosted by strong sales growth in the US
By Gerrit Wiesmann in Frankfurt
Published: April 23 2007 15:27 | Last updated: April 23 2007 15:27
SAP, the world’s biggest maker of software for business, took a first step to restoring investor confidence by announcing strong growth in the first quarter of the year while pledging to face down a lawsuit from a rival.
The stock traded 2.5 per cent higher at €37 per share late on Friday after the German company said sales of software and related services hit €1.52bn early 2007, a 15 per cent rise when adjusted for currency effects.
Henning Kagermann, chief executive, said strong sales growth in the US helped push SAP’s market share to 25.1 per cent, up 0.6 points from late last year, and again vowed to raise software sales by 12-14 per cent 2007.
The Walldorf-based group that started with programmes to help big businesses manage inventories or customer details twice last year missed quarterly growth targets, raising fears it was failing to lure smaller companies.
SAP in February said profitability would suffer 2007 as it earmarked €400m over two years for a new web-based software service for small companies – a segment being contested by US rivals such as Oracle and Microsoft, too.
The German company’s share price fell by more than one fifth from €42 at the start of the year, a slide compounded by a lawsuit filed by arch-rival Oracle alleging SAP had stolen software ideas from its computer systems.
Mr Kagermann said SAP would “aggressively defend” itself against claims a subsidiary misused Oracle customer gateways. “We have no intention to settle,” he said when asked if SAP might see a quick resolution.
At the same time, he brushed off the recent departure of chief software developer and possible successor, Shai Agassi. He noted US success was the work of sales boss Léo Apotheker, now deputy chief executive.
Investors seemed so cheered by positive news and robust words from Walldorf that they appeared largely to forgive first effects of the investment programme for the “AS1” project announced two months ago.
Building computer centres to “host” customer data took €20m off earnings last quarter, SAP said. Operating income still rose 6 per cent to €433m as total sales climbed 6.1 per cent to €2.2bn, just shy of forecasts.
Copyright The Financial Times Limited 2007
Friday, April 20, 2007
SAP Surprises; Salesforce’s Naked Platform; JDA Takes on i2 and Manhattan | AMR Research
SAP Surprises; Salesforce’s Naked Platform; JDA Takes on i2 and Manhattan | AMR Research
SAP Surprises; Salesforce’s Naked Platform; JDA Takes on i2 and Manhattan
by Bruce Richardson
Coming into this week’s earning announcement, I fully expected SAP to announce lower than expected revenue and earnings. Here were my reasons:
- The company had had a relatively weak fourth quarter.
- Unlike past quarters, there was no pre-announcement of results.
- In late March, the company was hit with a lawsuit by Oracle and the sudden resignation of Shai Agassi, one of its top executives.
- Most of our current client conversations focus on dealing with the cost and time of upgrades versus the benefits of must-have new products.
- SAP had scheduled the earnings call for a Friday, and it had never done this before. Were executives hoping to get the bad news out quickly and then offset it with more positive news at SAPPHIRE, which starts today?
SAP Surprises; Salesforce’s Naked Platform; JDA Takes on i2 and Manhattan
by Bruce Richardson
Coming into this week’s earning announcement, I fully expected SAP to announce lower than expected revenue and earnings. Here were my reasons:
- The company had had a relatively weak fourth quarter.
- Unlike past quarters, there was no pre-announcement of results.
- In late March, the company was hit with a lawsuit by Oracle and the sudden resignation of Shai Agassi, one of its top executives.
- Most of our current client conversations focus on dealing with the cost and time of upgrades versus the benefits of must-have new products.
- SAP had scheduled the earnings call for a Friday, and it had never done this before. Were executives hoping to get the bad news out quickly and then offset it with more positive news at SAPPHIRE, which starts today?
FT.com / Home UK / UK - Licence sales bolster SAP
FT.com / Home UK / UK - Licence sales bolster SAP
Licence sales bolster SAP
FRANKFURT, April 20 (Reuters) – Germany’s SAP met analysts’ forecasts for sales of new software licences but missed expectations for earnings after a difficult first quarter in which it lost a top manager and faced a lawsuit from a rival.
The world’s biggest maker of business software said on Friday licence sales, which tie customers into lucrative maintenance and service deals, rose 10 per cent to €564m ($767m), in line with a Reuters poll.
Licence sales were driven by 11 per cent growth in the Americas, allaying fears of weakness in the world’s biggest software market raised by IBM this week and reassuring investors spooked by two profit warnings last year.
Operating income rose 6 per cent to €433m, missing the poll average of €448m, although SAP said it had spent only €10m-€20m in the quarter of the €300m-€400m it plans to spend on developing new software.
SAP traded up 1.1 per cent on Instinet and up 0.4 percent at brokerage Lang & Schwarz ahead of the 0700 GMT market open in Frankfurt. The shares have recently been trading close to an all-time low in terms of earnings multiples.
”In light of what happened in Q4, I’d say this is a positive result. Being in line is good. They made a 20-per cent operating margin which was fractionally below expectations but I think they’ll be forgiven that,” said WestLB analyst Jonathan Crozier. ”I’d say this is exactly the kind of in-line quarter the company needed to start rebuilding confidence.”
SAP is fighting an increasingly bitter battle against US database specialist Oracle, which has been buying up peers to compete more directly with SAP and last month said it was suing its German rival for stealing its software.
The company was also forced to reshuffle its top management at the end of March after the unexpected departure of software development expert Shai Agassi, its top product strategist.
SAP, whose software helps companies manage their finances, personnel and operations, said business was strong across all regions and said its market share for the year to March 31 was 25.1 per cent, up from 24.5 per cent a quarter earlier.
”On a constant currency basis, we achieved a strong increase in software and software related service revenues and reported double digit growth rates in each region,” Henning Kagermann, chief executive, said in a statement.
Software and software-related service revenues, which SAP says will become the key figure to watch as it starts to sell software over the internet and by subscription, rose 9 per cent or 15 per cent at constant currencies to €1.52bn.
SAP stuck to its target of raising these software-related revenues by 12-14 per cent, adjusted for currency fluctuations, over the full year. The first-quarter result was in line with market consensus.
Total sales rose 6 per cent to €2.17bn, missing market expectations, and net profit rose 10 per cent to €310m. The operating margin, which SAP says will dip to 26-27 per cent this year, was 20.0 per cent.
Shares in SAP are more expensive than Oracle stock, due to SAP’s generally strong execution of an organic growth strategy. They currently trade at 20 times 2008 earnings, according to Reuters data, well below their historical average of about 29 times earnings and only a slight premium to Oracle’s 17 times, after the company missed targets twice last year
© Reuters Limited Click for restrictions
Licence sales bolster SAP
FRANKFURT, April 20 (Reuters) – Germany’s SAP met analysts’ forecasts for sales of new software licences but missed expectations for earnings after a difficult first quarter in which it lost a top manager and faced a lawsuit from a rival.
The world’s biggest maker of business software said on Friday licence sales, which tie customers into lucrative maintenance and service deals, rose 10 per cent to €564m ($767m), in line with a Reuters poll.
Licence sales were driven by 11 per cent growth in the Americas, allaying fears of weakness in the world’s biggest software market raised by IBM this week and reassuring investors spooked by two profit warnings last year.
Operating income rose 6 per cent to €433m, missing the poll average of €448m, although SAP said it had spent only €10m-€20m in the quarter of the €300m-€400m it plans to spend on developing new software.
SAP traded up 1.1 per cent on Instinet and up 0.4 percent at brokerage Lang & Schwarz ahead of the 0700 GMT market open in Frankfurt. The shares have recently been trading close to an all-time low in terms of earnings multiples.
”In light of what happened in Q4, I’d say this is a positive result. Being in line is good. They made a 20-per cent operating margin which was fractionally below expectations but I think they’ll be forgiven that,” said WestLB analyst Jonathan Crozier. ”I’d say this is exactly the kind of in-line quarter the company needed to start rebuilding confidence.”
SAP is fighting an increasingly bitter battle against US database specialist Oracle, which has been buying up peers to compete more directly with SAP and last month said it was suing its German rival for stealing its software.
The company was also forced to reshuffle its top management at the end of March after the unexpected departure of software development expert Shai Agassi, its top product strategist.
SAP, whose software helps companies manage their finances, personnel and operations, said business was strong across all regions and said its market share for the year to March 31 was 25.1 per cent, up from 24.5 per cent a quarter earlier.
”On a constant currency basis, we achieved a strong increase in software and software related service revenues and reported double digit growth rates in each region,” Henning Kagermann, chief executive, said in a statement.
Software and software-related service revenues, which SAP says will become the key figure to watch as it starts to sell software over the internet and by subscription, rose 9 per cent or 15 per cent at constant currencies to €1.52bn.
SAP stuck to its target of raising these software-related revenues by 12-14 per cent, adjusted for currency fluctuations, over the full year. The first-quarter result was in line with market consensus.
Total sales rose 6 per cent to €2.17bn, missing market expectations, and net profit rose 10 per cent to €310m. The operating margin, which SAP says will dip to 26-27 per cent this year, was 20.0 per cent.
Shares in SAP are more expensive than Oracle stock, due to SAP’s generally strong execution of an organic growth strategy. They currently trade at 20 times 2008 earnings, according to Reuters data, well below their historical average of about 29 times earnings and only a slight premium to Oracle’s 17 times, after the company missed targets twice last year
© Reuters Limited Click for restrictions
Thursday, April 19, 2007
FT.com / Companies / IT - Software sages of Newcastle
FT.com / Companies / IT - Software sages of Newcastle
Software sages of Newcastle
By Chris Tighe
Published: April 19 2007 03:00 | Last updated: April 19 2007 03:00
Ambitious young accountant arrives for life-changing job interview at small software company, and finds the boss has forgotten the meeting and gone to lunch.
Had Paul Walker been more pompous, and his forgetful interviewer David Goldman less charming, their reconvened meeting might never have happened. As a consequence, millions of businesspeople worldwide would today carry out their work somewhat differently.
Fortunately, Mr Walker's enthusiasm for the job - "Software sounded a bit more sexy than being in a firm of chartered accountants" - outweighed his consternation at the shabby industrial estate location of Mr Goldman's main business, a printer's.
Fortunately too for north-east England's economy, Mr Goldman was not only an entrepreneur but a judge of character. He assembledand inspired a team that transformed his Newcastle start-up, Sage Systems, into a FTSE 100 company.
Today, Mr Walker is chief executive of the Sage Group, the FTSE 100's only technology stock, and earns a basic salary of £700,000 a year, plus the same in bonuses for hitting annual targets. He travels globally for Sage but his home is just a stone's throw from the head office. "I can leave the house at 8am and be here for 8.15 - it's a big plus," he says, speaking at the company's headquarters.
Sage, still headquartered in Newcastle but in stunning new premises, now employs 13,000 people in 19 countries, and last year made pre-tax profit of £221m on turnover of £936m. Its marketcapitalisation is around £3.38bn.
From grotty industrial unit to purpose-built £70m HQ, where blue skies shimmer through the glass roof and massive boardroom doors glide back like a stage set: if economic development officers dream, it is surely of transformations like this. It parallels the journey the region's economy has taken from traditional industries to, increasingly, white collar activities.
The company's contribution to its home area has been substantial, through the wealth generated, the jobs created and the kudos of having spawned and retained a FTSE 100 company (see below).
Today, Sage sits alongside Microsoft, Oracle, SAP and Intuit as one of the world's top five suppliers of business management software and support to small and medium sized businesses.
It has 5.2m customers worldwide; every day, 30,000 people call it for help with business transactions. Products range from back office applications - one in four people in the UK arepaid using Sage Payroll - to front office activities suchas payment processing.
Yet of the big Newcastle HQ's 1,350 head count, just 21, plus five PAs, make up the group executive team; the rest work for Sage's UK and Ireland business.
Sage is heavily committed to decentralisation. It has four regional managers, who have great autonomy, covering the UK and Ireland, North America, mainland Europe and Asia, and South Africa and Australia.
"One of our key strategies continues to be that, while we are a global business, having local personnel, local autonomy, is our big differentiation," Mr Walker says. "The products in France are French; they aren't UKproducts shoehorned into French."
The devolved structure gives Sage a more entrepreneurial flavour, he says. "I have a team of entrepreneurs helping to run the business rather than people carrying out procedures from the centre." But, he adds: "Ultimately, the auth-ority rests with me".
He is friendly, down to earth and, by FTSE 100 standards, informal. At lunchtime, he saunters down-stairs with Paul Harrison, the finance director, to queue for a snack at Chill, one of the HQ's food outlets, run by a local entrepreneur. Mr Walker looks less smartly dressed than some of the nervous recruits touring the building.
The genesis of Sage's remarkable growth story was Mr Goldman's inkling in 1981 that computers could help automate his printing business's estimating.
Well before universities were seen as a resource for growing businesses, he and Paul Muller, an ex-Nasa mathematician who had moved to Tyneside, paid Newcastle University students to develop softwarefor estimating and basic accounting.
The next step was selling software to other companies. One of the students, Graham Wylie, joined Sage after graduating and became UK managing director; he left in 2003 with a shareholding of more than £100m.
Sage moved to better premises and won £320,000 venture capital backing but the company nearly went bust in 1985. Then came, says Mr Walker, "a defining moment". Mr Goldman spotted the potential of the new Amstrad computer as a software platform. Sage took off and floated in 1989.
Growth has been helped by 104 acquisitions since 1982. A devolved structure helps assimilate such acquisitions. But, as Sage grows, potential predators, whether industry rivals or private equity, will inevitably evaluate whether decentralisation spells strength or weakness.
The belief in being close to local markets, however, is unshakeable. "We mustn't centralise to the extent we start to generalise," MrHarrison says. There is in Sage "this intense desire to preserve entrepreneurial spirit".
Mr Goldman, who diedin 1999, would have understood this. "A lovely man - my mentor," Mr Walker says.
Mr Goldman, sage indeed, spotted the transforming power of software. Sage grew from that vision. Ten years from now, Mr Walker anticipates, transactions will be seamless, with less human intervention. But he cautions: "Thinking about the future, you have to leave behind today."
Spin-off benefits to home region
*TSG. Founded by north-east miner's son Graham Wylie, who left Sage with £100m in 2003. Newcastle headquarters,
12 offices across the UK and 440 employees. Claims to be the UK's fastest growing medium-sized IT company. Provides and supports IT services for SMEs. Forecast 2007 turnover of £38m. Also has leisure and retail interests and a stable of race horses in County Durham, trained by Howard Jones.
*Tom's Companies. Founded by Tom Maxfield, Sage sales director who left in 1998. County Durham HQ; top-class hotels/spas and restaurant in the north-east and Lake District, including Seaham Hall and Serenity Spa. His facilities have helped improve the region's image, offer top facilities and attract high spenders. Maxfield has said he is worth £40m-£50m.
*Substantial endowment by David Goldman's family to Newcastle University. This funds, at its business school, the David Goldman Chair of Business Innovation, a visiting professorship, research and annual young business person's award.
*A £6m contribution to the Sage Gateshead Music Centre, the UK's biggest single contribution to the arts by a private sector company. A landmark £70m Norman Foster building; part of Newcastle/ Gateshead's cultural resurgence.
*Prestigious FTSE100 headquarters located in Newcastle; 1,350 direct jobs, including higher level R&D and managerial/executive, contributing salaries, aspiration and expertise to local economy. Sage uses, wherever possible, local suppliers.
*Building private sector strength: Paul Walker chairs Newcastle Science City and the Entrepreneurs' Forum. These aim to strengthen, respectively, the area's science and entrepreneurial bases.
Copyright The Financial Times Limited 2007
Software sages of Newcastle
By Chris Tighe
Published: April 19 2007 03:00 | Last updated: April 19 2007 03:00
Ambitious young accountant arrives for life-changing job interview at small software company, and finds the boss has forgotten the meeting and gone to lunch.
Had Paul Walker been more pompous, and his forgetful interviewer David Goldman less charming, their reconvened meeting might never have happened. As a consequence, millions of businesspeople worldwide would today carry out their work somewhat differently.
Fortunately, Mr Walker's enthusiasm for the job - "Software sounded a bit more sexy than being in a firm of chartered accountants" - outweighed his consternation at the shabby industrial estate location of Mr Goldman's main business, a printer's.
Fortunately too for north-east England's economy, Mr Goldman was not only an entrepreneur but a judge of character. He assembledand inspired a team that transformed his Newcastle start-up, Sage Systems, into a FTSE 100 company.
Today, Mr Walker is chief executive of the Sage Group, the FTSE 100's only technology stock, and earns a basic salary of £700,000 a year, plus the same in bonuses for hitting annual targets. He travels globally for Sage but his home is just a stone's throw from the head office. "I can leave the house at 8am and be here for 8.15 - it's a big plus," he says, speaking at the company's headquarters.
Sage, still headquartered in Newcastle but in stunning new premises, now employs 13,000 people in 19 countries, and last year made pre-tax profit of £221m on turnover of £936m. Its marketcapitalisation is around £3.38bn.
From grotty industrial unit to purpose-built £70m HQ, where blue skies shimmer through the glass roof and massive boardroom doors glide back like a stage set: if economic development officers dream, it is surely of transformations like this. It parallels the journey the region's economy has taken from traditional industries to, increasingly, white collar activities.
The company's contribution to its home area has been substantial, through the wealth generated, the jobs created and the kudos of having spawned and retained a FTSE 100 company (see below).
Today, Sage sits alongside Microsoft, Oracle, SAP and Intuit as one of the world's top five suppliers of business management software and support to small and medium sized businesses.
It has 5.2m customers worldwide; every day, 30,000 people call it for help with business transactions. Products range from back office applications - one in four people in the UK arepaid using Sage Payroll - to front office activities suchas payment processing.
Yet of the big Newcastle HQ's 1,350 head count, just 21, plus five PAs, make up the group executive team; the rest work for Sage's UK and Ireland business.
Sage is heavily committed to decentralisation. It has four regional managers, who have great autonomy, covering the UK and Ireland, North America, mainland Europe and Asia, and South Africa and Australia.
"One of our key strategies continues to be that, while we are a global business, having local personnel, local autonomy, is our big differentiation," Mr Walker says. "The products in France are French; they aren't UKproducts shoehorned into French."
The devolved structure gives Sage a more entrepreneurial flavour, he says. "I have a team of entrepreneurs helping to run the business rather than people carrying out procedures from the centre." But, he adds: "Ultimately, the auth-ority rests with me".
He is friendly, down to earth and, by FTSE 100 standards, informal. At lunchtime, he saunters down-stairs with Paul Harrison, the finance director, to queue for a snack at Chill, one of the HQ's food outlets, run by a local entrepreneur. Mr Walker looks less smartly dressed than some of the nervous recruits touring the building.
The genesis of Sage's remarkable growth story was Mr Goldman's inkling in 1981 that computers could help automate his printing business's estimating.
Well before universities were seen as a resource for growing businesses, he and Paul Muller, an ex-Nasa mathematician who had moved to Tyneside, paid Newcastle University students to develop softwarefor estimating and basic accounting.
The next step was selling software to other companies. One of the students, Graham Wylie, joined Sage after graduating and became UK managing director; he left in 2003 with a shareholding of more than £100m.
Sage moved to better premises and won £320,000 venture capital backing but the company nearly went bust in 1985. Then came, says Mr Walker, "a defining moment". Mr Goldman spotted the potential of the new Amstrad computer as a software platform. Sage took off and floated in 1989.
Growth has been helped by 104 acquisitions since 1982. A devolved structure helps assimilate such acquisitions. But, as Sage grows, potential predators, whether industry rivals or private equity, will inevitably evaluate whether decentralisation spells strength or weakness.
The belief in being close to local markets, however, is unshakeable. "We mustn't centralise to the extent we start to generalise," MrHarrison says. There is in Sage "this intense desire to preserve entrepreneurial spirit".
Mr Goldman, who diedin 1999, would have understood this. "A lovely man - my mentor," Mr Walker says.
Mr Goldman, sage indeed, spotted the transforming power of software. Sage grew from that vision. Ten years from now, Mr Walker anticipates, transactions will be seamless, with less human intervention. But he cautions: "Thinking about the future, you have to leave behind today."
Spin-off benefits to home region
*TSG. Founded by north-east miner's son Graham Wylie, who left Sage with £100m in 2003. Newcastle headquarters,
12 offices across the UK and 440 employees. Claims to be the UK's fastest growing medium-sized IT company. Provides and supports IT services for SMEs. Forecast 2007 turnover of £38m. Also has leisure and retail interests and a stable of race horses in County Durham, trained by Howard Jones.
*Tom's Companies. Founded by Tom Maxfield, Sage sales director who left in 1998. County Durham HQ; top-class hotels/spas and restaurant in the north-east and Lake District, including Seaham Hall and Serenity Spa. His facilities have helped improve the region's image, offer top facilities and attract high spenders. Maxfield has said he is worth £40m-£50m.
*Substantial endowment by David Goldman's family to Newcastle University. This funds, at its business school, the David Goldman Chair of Business Innovation, a visiting professorship, research and annual young business person's award.
*A £6m contribution to the Sage Gateshead Music Centre, the UK's biggest single contribution to the arts by a private sector company. A landmark £70m Norman Foster building; part of Newcastle/ Gateshead's cultural resurgence.
*Prestigious FTSE100 headquarters located in Newcastle; 1,350 direct jobs, including higher level R&D and managerial/executive, contributing salaries, aspiration and expertise to local economy. Sage uses, wherever possible, local suppliers.
*Building private sector strength: Paul Walker chairs Newcastle Science City and the Entrepreneurs' Forum. These aim to strengthen, respectively, the area's science and entrepreneurial bases.
Copyright The Financial Times Limited 2007
Thursday, April 12, 2007
FTD.de - IT+Telekommunikation - Nachrichten - Gerüchte drücken SAP-Aktie
FTD.de - IT+Telekommunikation - Nachrichten - Gerüchte drücken SAP-Aktie
Gerüchte um eine angeblich bevorstehende Gewinnwarnung des Walldorfer Softwarekonzerns SAP haben dessen Aktienkurs unter Druck gesetzt. Eine vorzeitige Veröffentlichung der Zwischenbilanz für die ersten drei Monate des Geschäftsjahres sei Händlern zufolge denkbar.
Gerüchte um eine angeblich bevorstehende Gewinnwarnung des Walldorfer Softwarekonzerns SAP haben dessen Aktienkurs unter Druck gesetzt. Eine vorzeitige Veröffentlichung der Zwischenbilanz für die ersten drei Monate des Geschäftsjahres sei Händlern zufolge denkbar.
Tuesday, April 10, 2007
SAP's 'Perfect Plant' Initiative Close but Not Perfect Yet
SAP's 'Perfect Plant' Initiative Close but Not Perfect Yet
SAP's initiative emphasizes integration of plant operations and asset management. This will enable manufacturers and asset-centric enterprises like utilities to focus on improving their operating units' performance.
SAP's initiative emphasizes integration of plant operations and asset management. This will enable manufacturers and asset-centric enterprises like utilities to focus on improving their operating units' performance.
Thursday, April 05, 2007
Gartner: SAP richtet Strategie neu aus - Nachrichten - computerwoche.de
Gartner: SAP richtet Strategie neu aus - Nachrichten - computerwoche.de
Gartner: SAP richtet Strategie neu aus05.04.2007 um 14:18 Uhr
Der Weggang von Kronprinz Shai Agassi verdeutlicht SAPs Strategiewechsel, meinen die Analysten von Gartner. Künftig werde der Softwarekonzern mit mehreren parallel geführten Produkten eine mehrgleisige Geschäftsstrategie fahren.
Über sechs Jahre lang sei Agassi der Visionär und Treiber des internen Wandels bei SAP gewesen, ziehen die Marktforscher von Gartner eine Bilanz der Ära Agassi. Ein Satz gemeinsamer, austauschbarer Techniken und Services, die sich anpassen ließen, um in verschiedenen Märkten angeboten und von einem Partner-Ökosystem erweitert zu werden, seien das Kennzeichen des Ex-SAP-Vorstands gewesen. Zentrale Bausteine seien die Middleware-Plattform rund um "Netweaver" und ein Portfolio aus Enterprise Services.
Gartner zufolge hat sich im vergangenen Jahr die SAP-Strategie jedoch geändert. Der Konzern werde sich künftig darauf konzentrieren, ein Produktportfolio statt eines Einzelprodukts mit einer fokussierten Strategie zu entwickeln. Netweaver werde jedoch die technische Basis bleiben. Die Anwender sollten in ihre Planungen mit einbeziehen, dass Mysap nicht mehr das einzige Produkt der SAP sei, sondern zunehmend von neuen Angeboten für verschiedene Märkte flankiert werde. Als Beispiel nennen die Analysten SAPs erneute Avancen in Richtung Mittelstand (siehe auch: SAP macht ernst im Mittelstand). Gartner geht davon aus, dass SAP erste Produktinitiativen noch im Laufe des Jahres ankündigen wird.
"Wir sind der Meinung, dass der strategische Wechsel zusammen mit den Streitigkeiten um die Nachfolge an der unternehmensspitze Agassi dazu bewogen haben, SAP zu verlassen", heißt es in einer Analyse der Marktforscher (siehe auch: Neues SAP-Mittelstandsprodukt "A1S" setzte Agassi unter Druck und SAP-Personalie: Agassis Aufgaben werden aufgeteilt) Seine Rolle als Treiber für den Wandel sei nicht mehr gefragt gewesen, da sich die neue SAP-Strategie zunehmend gefestigt habe. Die jüngsten Entwicklungen würden SAP in eine eher konservative Richtung lenken. Gartner geht davon aus, dass die Rolle des Visionärs einem anderen Vorstandsmitglied zufallen wird. Wer die Rolle ausfüllen werde, sei jedoch noch nicht abzusehen. Die Marktforschergehen davon aus, dass nach den anstehenden Kundenveranstaltungen "Sapphire" in Atlanta und Wien mehr Klarheit herrschen wird. (ba)
Gartner: SAP richtet Strategie neu aus05.04.2007 um 14:18 Uhr
Der Weggang von Kronprinz Shai Agassi verdeutlicht SAPs Strategiewechsel, meinen die Analysten von Gartner. Künftig werde der Softwarekonzern mit mehreren parallel geführten Produkten eine mehrgleisige Geschäftsstrategie fahren.
Über sechs Jahre lang sei Agassi der Visionär und Treiber des internen Wandels bei SAP gewesen, ziehen die Marktforscher von Gartner eine Bilanz der Ära Agassi. Ein Satz gemeinsamer, austauschbarer Techniken und Services, die sich anpassen ließen, um in verschiedenen Märkten angeboten und von einem Partner-Ökosystem erweitert zu werden, seien das Kennzeichen des Ex-SAP-Vorstands gewesen. Zentrale Bausteine seien die Middleware-Plattform rund um "Netweaver" und ein Portfolio aus Enterprise Services.
Gartner zufolge hat sich im vergangenen Jahr die SAP-Strategie jedoch geändert. Der Konzern werde sich künftig darauf konzentrieren, ein Produktportfolio statt eines Einzelprodukts mit einer fokussierten Strategie zu entwickeln. Netweaver werde jedoch die technische Basis bleiben. Die Anwender sollten in ihre Planungen mit einbeziehen, dass Mysap nicht mehr das einzige Produkt der SAP sei, sondern zunehmend von neuen Angeboten für verschiedene Märkte flankiert werde. Als Beispiel nennen die Analysten SAPs erneute Avancen in Richtung Mittelstand (siehe auch: SAP macht ernst im Mittelstand). Gartner geht davon aus, dass SAP erste Produktinitiativen noch im Laufe des Jahres ankündigen wird.
"Wir sind der Meinung, dass der strategische Wechsel zusammen mit den Streitigkeiten um die Nachfolge an der unternehmensspitze Agassi dazu bewogen haben, SAP zu verlassen", heißt es in einer Analyse der Marktforscher (siehe auch: Neues SAP-Mittelstandsprodukt "A1S" setzte Agassi unter Druck und SAP-Personalie: Agassis Aufgaben werden aufgeteilt) Seine Rolle als Treiber für den Wandel sei nicht mehr gefragt gewesen, da sich die neue SAP-Strategie zunehmend gefestigt habe. Die jüngsten Entwicklungen würden SAP in eine eher konservative Richtung lenken. Gartner geht davon aus, dass die Rolle des Visionärs einem anderen Vorstandsmitglied zufallen wird. Wer die Rolle ausfüllen werde, sei jedoch noch nicht abzusehen. Die Marktforschergehen davon aus, dass nach den anstehenden Kundenveranstaltungen "Sapphire" in Atlanta und Wien mehr Klarheit herrschen wird. (ba)
Wednesday, April 04, 2007
Tuesday, April 03, 2007
Alles über Netweaver: Was die Plattform wirklich bietet - Knowledge-Center - Enterprise Resource Planning - computerwoche.de
Alles über Netweaver: Was die Plattform wirklich bietet - Knowledge-Center - Enterprise Resource Planning - computerwoche.de
SAPs Netweaver ist Dreh- und Angelpunkt für die Enterprise Service-oriented Architecture (E-SOA). Vielen Anwendern ist jedoch nach wie vor nicht klar, welche Möglichkeiten die Integrationsplattform bietet.
SAPs Netweaver ist Dreh- und Angelpunkt für die Enterprise Service-oriented Architecture (E-SOA). Vielen Anwendern ist jedoch nach wie vor nicht klar, welche Möglichkeiten die Integrationsplattform bietet.
CW-Schwerpunkt "Alles über Netweaver" - Knowledge-Center - Enterprise Resource Planning - computerwoche.de
CW-Schwerpunkt "Alles über Netweaver" - Knowledge-Center - Enterprise Resource Planning - computerwoche.de
CW-Schwerpunkt "Alles über Netweaver"03.04.2007 um 14:44 Uhr
Noch wissen viele SAP-Anwender nicht genau, was Netweaver leistet. Zudem fragen sie sich, welche Rolle die Integrationsplattform in ihrer IT-Strategie spielen soll. Antworten darauf liefert der Computerwoche-Schwerpunkt "Alles über Netweaver".
Derzeit nehmen einige SAP-Kunden eine Migration von R/3 auf Mysap ERP 2005 vor oder planen ein solches Vorhaben. Welche Bedeutung Netweaver dabei hat und wie die Plattform mit der ERP-Lösung zusammenspielt, darüber informiert der Beitrag "Was die Plattform wirklich bietet".
Nach Ansicht der SAP lassen sich mit Hilfe von Netweaver unter anderem die IT-Betriebskosten reduzieren. Den Beweis dafür zu liefern ist jedoch schwierig, allenfalls Erfahrungswerte können Hinweise liefern, auf welche Art Firmen mittels Portal- und Integrationstechnik Geld sparen können. Allerdings muss hier immer ein Zeitraum von zwei Jahren beobachtet werden, meinen die Autoren des Fachbeitrags "Ersparnis oder zusätzliche Kosten?".
Bevor Firmen sich für eine IT-Plattform - sei es nun Netweaver, Websphere oder .NET - entscheiden, sollten sie sich eine Strategie zurechtlegen. Dabei muss definiert werden, welche Infrastrukturlösung für welche Aufgaben im Unternehmen in Frage kommt. Das ist jedoch nicht immer ganz einfach, hier Anbieterunabhängig zu planen: Sowohl IBM, Microsoft und SAP liefern ihre Softwareplattformen beispielsweise mit Portalen aus, wie der Artikel "Plattformen verändern IT und Business" erläutert.
Neben der Integration unterschiedlicher SAP-Komponenten soll Netweaver auch Drittsysteme mit ERP-Umgebungen koppeln können. Wie das technisch am Beispiel von Business-Intelligence-Software geht, steht in "Anwendungsschranken überwinden". (fn/ba)
CW-Schwerpunkt "Alles über Netweaver"03.04.2007 um 14:44 Uhr
Noch wissen viele SAP-Anwender nicht genau, was Netweaver leistet. Zudem fragen sie sich, welche Rolle die Integrationsplattform in ihrer IT-Strategie spielen soll. Antworten darauf liefert der Computerwoche-Schwerpunkt "Alles über Netweaver".
Derzeit nehmen einige SAP-Kunden eine Migration von R/3 auf Mysap ERP 2005 vor oder planen ein solches Vorhaben. Welche Bedeutung Netweaver dabei hat und wie die Plattform mit der ERP-Lösung zusammenspielt, darüber informiert der Beitrag "Was die Plattform wirklich bietet".
Nach Ansicht der SAP lassen sich mit Hilfe von Netweaver unter anderem die IT-Betriebskosten reduzieren. Den Beweis dafür zu liefern ist jedoch schwierig, allenfalls Erfahrungswerte können Hinweise liefern, auf welche Art Firmen mittels Portal- und Integrationstechnik Geld sparen können. Allerdings muss hier immer ein Zeitraum von zwei Jahren beobachtet werden, meinen die Autoren des Fachbeitrags "Ersparnis oder zusätzliche Kosten?".
Bevor Firmen sich für eine IT-Plattform - sei es nun Netweaver, Websphere oder .NET - entscheiden, sollten sie sich eine Strategie zurechtlegen. Dabei muss definiert werden, welche Infrastrukturlösung für welche Aufgaben im Unternehmen in Frage kommt. Das ist jedoch nicht immer ganz einfach, hier Anbieterunabhängig zu planen: Sowohl IBM, Microsoft und SAP liefern ihre Softwareplattformen beispielsweise mit Portalen aus, wie der Artikel "Plattformen verändern IT und Business" erläutert.
Neben der Integration unterschiedlicher SAP-Komponenten soll Netweaver auch Drittsysteme mit ERP-Umgebungen koppeln können. Wie das technisch am Beispiel von Business-Intelligence-Software geht, steht in "Anwendungsschranken überwinden". (fn/ba)
btexx - The Portal Experts
btexx - The Portal Experts
Die Wacker Chemie AG hat mit SAP NetWeaver durchgängige und integrierte Kommunikationsprozesse zu Kunden implementiert und den Grundstein für eine Enterprise Service-Oriented Architecture (Enterprise SOA) gelegt.
Als global operierender Chemiekonzern stellt das Unternehmen unter anderem chemische Produkte für die Halbleiterindustrie sowie Beschichtungen und Füllstoffe für Druckfarben und Klebstoffe her. Hinzu kommen maßgeschneiderte Lösungen für die Feinchemie und Biotechnologie. Ein wesentlicher Grund für die rasche Implementierung war die Unterstützung durch btexx business technologies, einen Special Expertise Partner für SAP NetWeaver Portal. Dabei brachte btexx business technologies seine Erfahrungen aus zahlreichen Portalinstallationen ein. Weiter lesen...
Die Wacker Chemie AG hat mit SAP NetWeaver durchgängige und integrierte Kommunikationsprozesse zu Kunden implementiert und den Grundstein für eine Enterprise Service-Oriented Architecture (Enterprise SOA) gelegt.
Als global operierender Chemiekonzern stellt das Unternehmen unter anderem chemische Produkte für die Halbleiterindustrie sowie Beschichtungen und Füllstoffe für Druckfarben und Klebstoffe her. Hinzu kommen maßgeschneiderte Lösungen für die Feinchemie und Biotechnologie. Ein wesentlicher Grund für die rasche Implementierung war die Unterstützung durch btexx business technologies, einen Special Expertise Partner für SAP NetWeaver Portal. Dabei brachte btexx business technologies seine Erfahrungen aus zahlreichen Portalinstallationen ein. Weiter lesen...
SAP - SAP Empowers Small Businesses to Thrive in Evolving Marketplace with Quick Innovation Delivery
SAP - SAP Empowers Small Businesses to Thrive in Evolving Marketplace with Quick Innovation Delivery
In a continued display of its commitment to enabling small businesses to thrive in the fast-changing global marketplace, SAP AG announced enhancement packages for SAP Business One, a new series of downloadable packages as part of SAP standard support that provide SAP Business One customers with faster and more frequent access to new functionality, best practice tools and maintenance updates.
In a continued display of its commitment to enabling small businesses to thrive in the fast-changing global marketplace, SAP AG announced enhancement packages for SAP Business One, a new series of downloadable packages as part of SAP standard support that provide SAP Business One customers with faster and more frequent access to new functionality, best practice tools and maintenance updates.
Monday, April 02, 2007
The Future of the Enterprise User Interface | AMR Research
The Future of the Enterprise User Interface | AMR Research
Application Infrastructure
The New UI
The user interface (UI) will evolve into a pervasive layer for user interaction in the next five years, extending established enterprise systems to users in their work environments—wherever they happen to be. The new UI will also serve as the platform for enterprises to deploy and tie together an emerging array of personal, group, and community productivity and collaboration tools.
While the new UI won’t be a simple, thin facade, it will seem simple to end users, insulating them from the complexity of numerous internal and external applications. As such, it will no longer be trivialized as eye candy by IT developers. Instead it will be an intrinsic part of every company’s software architecture. It will allow end users a persistent, consistent, and personalized means of accessing, contributing, and delivering information across internal and external sources; structured and unstructured systems; and business, personal, and community services. By allowing people and communities to engage in new ways, the new UI will be the crucial mechanism for ensuring their ideas, expertise, and knowledge contribute more directly to enterprise performance.
Enterprises should lay out their own five-year vision for the new UI in the context of their business, with a view toward the business opportunities and advantages it could bring. They should match their vision with their strategic vendors’ abilities or willingness to achieve it. Portal frameworks are rightly the method most are using today. Large infrastructure, software, and suite providers must recognize that resistance to interoperability will increasingly hinder their ability to grow. This may not be immediately obvious when selling individual applications, but long-term sales may suffer as a result of customer frustration and lack of seamless interoperability. Vendors focused on specific business processes or industries can maximize the opportunity by adopting portal standards, componentizing applications, and providing rich visual components to demonstrate their ability to reach many environments. Those in the knowledge management space, including collaboration platforms, search, content management, and emerging social networking (such as Web 2.0-style applications), should position themselves to address new UI demands. And service providers should make the effort to understand the evolving demands for the new UI and extend their expertise commensurately in designing an engaging user experience. They should gear their technology and process expertise toward overcoming technical, organizational, and cultural obstacles, as companies look eagerly toward more pervasive approaches to ubiquitous computing and unified communications and collaboration.
For more details on where user interfaces are headed see, “The Future of the Enterprise User Interface,” and its companion pieces, “New Technology Trends for the New User Interface” and “The New UI: Prime Software Players To Watch.”
Application Infrastructure
The New UI
The user interface (UI) will evolve into a pervasive layer for user interaction in the next five years, extending established enterprise systems to users in their work environments—wherever they happen to be. The new UI will also serve as the platform for enterprises to deploy and tie together an emerging array of personal, group, and community productivity and collaboration tools.
While the new UI won’t be a simple, thin facade, it will seem simple to end users, insulating them from the complexity of numerous internal and external applications. As such, it will no longer be trivialized as eye candy by IT developers. Instead it will be an intrinsic part of every company’s software architecture. It will allow end users a persistent, consistent, and personalized means of accessing, contributing, and delivering information across internal and external sources; structured and unstructured systems; and business, personal, and community services. By allowing people and communities to engage in new ways, the new UI will be the crucial mechanism for ensuring their ideas, expertise, and knowledge contribute more directly to enterprise performance.
Enterprises should lay out their own five-year vision for the new UI in the context of their business, with a view toward the business opportunities and advantages it could bring. They should match their vision with their strategic vendors’ abilities or willingness to achieve it. Portal frameworks are rightly the method most are using today. Large infrastructure, software, and suite providers must recognize that resistance to interoperability will increasingly hinder their ability to grow. This may not be immediately obvious when selling individual applications, but long-term sales may suffer as a result of customer frustration and lack of seamless interoperability. Vendors focused on specific business processes or industries can maximize the opportunity by adopting portal standards, componentizing applications, and providing rich visual components to demonstrate their ability to reach many environments. Those in the knowledge management space, including collaboration platforms, search, content management, and emerging social networking (such as Web 2.0-style applications), should position themselves to address new UI demands. And service providers should make the effort to understand the evolving demands for the new UI and extend their expertise commensurately in designing an engaging user experience. They should gear their technology and process expertise toward overcoming technical, organizational, and cultural obstacles, as companies look eagerly toward more pervasive approaches to ubiquitous computing and unified communications and collaboration.
For more details on where user interfaces are headed see, “The Future of the Enterprise User Interface,” and its companion pieces, “New Technology Trends for the New User Interface” and “The New UI: Prime Software Players To Watch.”
Saturday, March 31, 2007
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
Friday, March 30, 2007
FTD.de - Köpfe - Kopf des Tages - Leo Apotheker: Der neue Kronprinz
FTD.de - Köpfe - Kopf des Tages - Leo Apotheker: Der neue Kronprinz
Eigentlich zieht ihn nicht viel nach Walldorf, den Sitz der SAP-Zentrale, zwischen Spargelfeldern in der badischen Provinz gelegen. Léo Apotheker lebt seit mehr als 20 Jahren in Paris. Aus der Peripherie ist er vor einigen Jahren ins vornehme 17. Arrondissement im Zentrum gezogen, in eine "sehr komfortable Wohnung", die er zuvor aufwendig umgebaut hat.
Eigentlich zieht ihn nicht viel nach Walldorf, den Sitz der SAP-Zentrale, zwischen Spargelfeldern in der badischen Provinz gelegen. Léo Apotheker lebt seit mehr als 20 Jahren in Paris. Aus der Peripherie ist er vor einigen Jahren ins vornehme 17. Arrondissement im Zentrum gezogen, in eine "sehr komfortable Wohnung", die er zuvor aufwendig umgebaut hat.
FT.com / Companies / IT - SAP shares fall after research chief quits
FT.com / Companies / IT - SAP shares fall after research chief quits
SAP shares fall after research chief quits
By Gerrit Wiesmann in Frankfurt
Published: March 29 2007 20:19 Last updated: March 29 2007 20:19
SAP shares fell to a near two-year low in the course of Thursday trading, after the world’s biggest maker of software for companies lost its star product developer and prepared for succession at the top of the group without him.
The departure of 38-year-old technology head Shai Agassi extended a run of bad news, which includes missed targets in two recent quarters, investor doubts about a new product and a lawsuit from rival Oracle alleging theft.
But the shares managed to make up early losses as investors seemed to realise the likely elevation of sales chief Léo Apotheker to sole chief executive in two years’ time might be no bad thing, given a vital new product launch.
SAP stock fell as much as 2 per cent to €32.83 per share, near a closing low of €32.80 recorded on May 23 2005, but they rallied to close only 0.5 per cent lower. However, SAP was still the loser among German blue chip stocks.
Hasso Plattner, SAP chairman, said Mr Agassi’s “personal career timeline” had jarred with SAP’s plan to make him and Mr Apotheker co-chief executives after the departure of Henning Kagermann in the spring of 2009.
People who know SAP said the US-based ex-software entrepreneur was not willing to spend years in tandem with Mr Apotheker, an SAP veteran fifteen years his senior, before someday – maybe – taking sole control.
Mr Agassi said he would concentrate on public policy issues such as the environment. But SAP will retain him as “special consultant” to Mr Plattner – a move clearly designed to stop Mr Agassi working for competitors.
His departure also led to a reorganisation of SAP’s top management, with Mr Apotheker being named deputy chief executive and Mr Kagermann taking over research from Mr Agassi, who will leave on April 1.
Although Mr Plattner refused to say whether Mr Apotheker would actually succeed Mr Kagermann, further organisational changes show the influence the new deputy chief executive will wield at SAP headquarters in Walldorf.
Half of a new 10-member executive council will report directly to Mr Apotheker. One of these, Hans-Peter Klaey, is in charge of SAP’s efforts to sell to small companies after coming to dominate the big company sector.
SAP says a key to success in this sector is a new internet service “hosted” on its computers but investors have balked at an investment of €400m ($534m) and worry about nimble rivals. Its shares have fallen 25 per cent in a year.
Copyright The Financial Times Limited 2007
SAP shares fall after research chief quits
By Gerrit Wiesmann in Frankfurt
Published: March 29 2007 20:19 Last updated: March 29 2007 20:19
SAP shares fell to a near two-year low in the course of Thursday trading, after the world’s biggest maker of software for companies lost its star product developer and prepared for succession at the top of the group without him.
The departure of 38-year-old technology head Shai Agassi extended a run of bad news, which includes missed targets in two recent quarters, investor doubts about a new product and a lawsuit from rival Oracle alleging theft.
But the shares managed to make up early losses as investors seemed to realise the likely elevation of sales chief Léo Apotheker to sole chief executive in two years’ time might be no bad thing, given a vital new product launch.
SAP stock fell as much as 2 per cent to €32.83 per share, near a closing low of €32.80 recorded on May 23 2005, but they rallied to close only 0.5 per cent lower. However, SAP was still the loser among German blue chip stocks.
Hasso Plattner, SAP chairman, said Mr Agassi’s “personal career timeline” had jarred with SAP’s plan to make him and Mr Apotheker co-chief executives after the departure of Henning Kagermann in the spring of 2009.
People who know SAP said the US-based ex-software entrepreneur was not willing to spend years in tandem with Mr Apotheker, an SAP veteran fifteen years his senior, before someday – maybe – taking sole control.
Mr Agassi said he would concentrate on public policy issues such as the environment. But SAP will retain him as “special consultant” to Mr Plattner – a move clearly designed to stop Mr Agassi working for competitors.
His departure also led to a reorganisation of SAP’s top management, with Mr Apotheker being named deputy chief executive and Mr Kagermann taking over research from Mr Agassi, who will leave on April 1.
Although Mr Plattner refused to say whether Mr Apotheker would actually succeed Mr Kagermann, further organisational changes show the influence the new deputy chief executive will wield at SAP headquarters in Walldorf.
Half of a new 10-member executive council will report directly to Mr Apotheker. One of these, Hans-Peter Klaey, is in charge of SAP’s efforts to sell to small companies after coming to dominate the big company sector.
SAP says a key to success in this sector is a new internet service “hosted” on its computers but investors have balked at an investment of €400m ($534m) and worry about nimble rivals. Its shares have fallen 25 per cent in a year.
Copyright The Financial Times Limited 2007
Oracle to Acquire a Lead in Extreme Transaction Processing
Oracle to Acquire a Lead in Extreme Transaction Processing
The acquisition of Tangosol will make Oracle an even more credible player in the market for extreme transaction processing software. Its rivals will have to step up their plans if they don't want to fall further behind.
The acquisition of Tangosol will make Oracle an even more credible player in the market for extreme transaction processing software. Its rivals will have to step up their plans if they don't want to fall further behind.
Executive Changes at SAP Reflect Ongoing Changes in Strategy
Executive Changes at SAP Reflect Ongoing Changes in Strategy
Shai Agassi, who appeared to be next in line to become CEO of SAP, has left the company. This change in leadership of SAP reflects an ongoing change to a parallel, multiproduct strategy.
Shai Agassi, who appeared to be next in line to become CEO of SAP, has left the company. This change in leadership of SAP reflects an ongoing change to a parallel, multiproduct strategy.
Shai Agassi Out at SAP | AMR Research
Shai Agassi Out at SAP | AMR Research
The phone call came at 5:30 a.m. PST. Could I be available for an urgent call at 10:00 a.m. with Hasso Plattner, co-founder and former CEO of SAP AG? The only other question was “have you heard anything yet?” No other details were provided.
Needless to say, going back to sleep was not an option. My immediate thought was that SAP had either made a major acquisition or a management change. I discounted the acquisition figuring that SAP would make that announcement after the close of the market, not during the middle of the day. It also wouldn’t make sense to create any distractions during the last week of the quarter.
The fact that the call was with Dr. Plattner only added to the mystery. While his presence and influence still resonate throughout SAP offices worldwide, he had stepped down from active management four years ago. Why was the call with him and not with current CEO Henning Kagermann?
The irony was that Jim Shepherd and I had to leave a meeting at Oracle’s headquarters to take the call with Dr. Plattner. Shortly before excusing ourselves, I bet our hosts that the news would be that Shai Agassi, president of SAP’s Product and Technology Group, would be leaving the firm. Mr. Agassi had been Dr. Plattner’s protégé.
Plattner to Agassi: “You’re the heir apparent”
For the next 40 minutes or so, Jim Shepherd and I talked to Dr. Plattner about Mr. Agassi’s sudden departure. Mr. Agassi had joined SAP six years ago when the ERP giant acquired TopTier, a portal vendor, for $400M. At the time, the most amazing point of the acquisition was the price, 20 times trailing revenue. Since that time, Mr. Agassi had enjoyed a meteoric rise.
Dr. Plattner said he had told Mr. Agassi 15 months ago that he planned to make him co-CEO of SAP AG, and that he was the “heir apparent.” The plans went awry last month when SAP’s supervisory board extended Mr. Kagermann’s contract two more years to May 31, 2009.
Dr. Plattner talked to Mr. Agassi about the board’s decision and told him to think about his plans during a vacation. A few weeks later, Mr. Agassi told his very disappointed mentor that he wouldn’t wait for the top spot. Dr. Plattner then told us that they discussed Mr. Agassi’s resignation which was offered to and accepted by the supervisory board. The resignation is effective April 1. Noting the date, the co-founder assured us that “it’s not an April Fool’s joke.”
According to the press release, Mr. Agassi will remain as a “special consultant to the office of the Chairman of the Supervisory Board on technology, innovation, and competitive trends.” The release also said that he would be exploring new opportunities, including “alternative energy and environmental policy issues, as well as the future of Israel.” While I have not talked to Mr. Agassi since the news, I think there is a high likelihood that he ends up at a venture capital firm, at least in the near term. This would allow him to spend more time with his family. While at SAP, Mr. Agassi had maintained a grueling travel schedule.
Odd timing with 2.5 days left in the quarter
The phone call was on Wednesday—the middle of the last week of the first quarter. This is a crucial period for SAP, as it comes after Oracle had just posted strong growth in the applications business and claimed it was closing the gap with SAP.
Naturally, our first question was about the timing of the call. Dr. Plattner explained that the news was slowly leaking out and that SAP needed to make the announcement.
We followed that with a question about Mr. Agassi’s successor. Rather than name one person, Dr. Plattner said that the company was bringing back the Executive Council, which consists of five corporate officers reporting to Mr. Kagermann. The council will be responsible for synchronizing the branding, user interface, architecture and strategy, joint repository, and NetWeaver plans around SAP’s three product lines: SAP Business Suite (formerly mySAP), BusinessOne, and the much talked about A1S line that has not been officially launched.
Executive council members include Doug Merritt (responsible for the “development of software for the business user”), Klaus Kreplin (leads NetWeaver technology), Jim Hagemann Snabe (heads SAP Business Suite), Michael Kleinemeier (heads collaboration and takes over the industry development reins from Mr. Snabe), and Bob Stutz (leads CRM).
All of the members have extensive SAP and/or applications experience. While I don’t know Mr. Kleinemeier, he had been president of SAP EMEA Central and managing director of SAP Germany. Mr. Kreplin and Mr. Snabe have been with SAP for more than a decade. The others have been with SAP for less than two years. Mr. Merritt is a former PeopleSoft executive running the human capital management (HCM) business unit. Prior to joining SAP, Mr. Stutz’s responsibilities including managing Siebel’s 21 vertical product lines.
Who will take Shai’s place?
In terms of which council member succeeds Mr. Agassi, the answer seems to be all of them, and maybe Peter Zencke, too. If Mr. Snabe moved to the United States, it would be tempting to name him as the “new Shai.” Instead, the plans are for him to remain at SAP headquarters. Mr. Merritt appears to be the key executive in Palo Alto. He has a lot of the new application initiatives including the nascent GRC (governance, risk, and compliance) unit, the joint Duet effort with Microsoft, and analytics. He also heads all of the U.S. labs. In terms of head count, though, Mr. Kreplin runs the largest development group thanks to the continued expansion of the NetWeaver suite.
As for Dr. Zencke, he is a member of the executive board, a level above the executive council. I mention him because he is leading the A1S development team. Dr. Plattner noted that 2,500 of SAP’s engineers report in to Dr. Zencke, and that he has more than 50% of the NetWeaver team.
We asked Dr. Plattner if he would be taking a more active role at the company. He said that “I will talk at SAPPHIRE, but I won’t be designing the third generation,” a reference to the new A1S line. The first two generations were R/2 and the ever evolving R/3/mySAP/SAP Business Suite.
Leo Apotheker named Deputy CEO
In the same press release, SAP named Leo Apotheker as deputy CEO. While this is kind of an odd title for a high-tech company, it seems clear that he is now the No. 2 person at SAP. Mr. Apotheker had been president of customer solutions and operations, which encompasses all of SAP’s sales and marketing.
Bill McDermott also gains more responsibility. In addition to the Americas, he is now responsible for the Asia-Pacific and Japan regions. This news delighted at least one competitor who told us that Mr. McDermott was a formidable presence in U.S. deals. He figures that the SAP executive will be less of a threat now that he has added at least 12 more time zones to his territory.
What’s the impact of Shai’s departure on SAP?
On the flight back from California, Jim Shepherd and I talked about the implications of Mr. Agassi’s departure. While Mr. Agassi was SAP’s best public speaker and the face of its technology vision, the focus shifted too much from the applications.
Here’s Shep’s take:
“I think that Shai’s interest was always technology instead of applications. He never understood that SAP’s great strength has always been its focus on business problems and business processes. Shifting the debate from functionality to technical elegance was a critical error. It leveled the playing field and allowed Oracle and the infrastructure players back in the game.
SAP was always unique in its ability to talk to, and appeal to the senior executives in a company while everyone else was relegated to courting the IT department. Shai’s obsession with NetWeaver and service-oriented architectures (SOAs) was bound to alienate a development organization that had always been oriented to solving complex business and industry problems. Even Peter Zencke has always understood that the proper purpose of technology is to address a manufacturing scheduling dilemma or support a supply chain decision—not to create a cooler composite app development tool.
I think once it gets back to a situation where application development is king and technology development is a supporting role, the compatibility issues, both social and technical, will start to go away.”
Shep is being too kind. Reducing the politics and the internal tensions will take some time. As I write this, e-mails are coming in from customers and former SAP employees weighing in on the Mr. Agassi and his NetWeaver legacy. As one person described it, NetWeaver is a “collection of non-integrated technologies with separate release cycles and QA (quality assurance) processes.” The writer could have added that development is spread all over many of SAP’s 10 major labs, too, adding to the complexity of the release management and QA processes.
How did SAP do in Q1?
By the time you read this, SAP’s quarter will have ended. Will the news of the last two weeks have had any impact on deals that were expected to close? Or, do buyers not care? What do you think Shai Agassi’s legacy will be?
As always, I welcome your comments and ideas—brichardson@amrresearch.com.
The phone call came at 5:30 a.m. PST. Could I be available for an urgent call at 10:00 a.m. with Hasso Plattner, co-founder and former CEO of SAP AG? The only other question was “have you heard anything yet?” No other details were provided.
Needless to say, going back to sleep was not an option. My immediate thought was that SAP had either made a major acquisition or a management change. I discounted the acquisition figuring that SAP would make that announcement after the close of the market, not during the middle of the day. It also wouldn’t make sense to create any distractions during the last week of the quarter.
The fact that the call was with Dr. Plattner only added to the mystery. While his presence and influence still resonate throughout SAP offices worldwide, he had stepped down from active management four years ago. Why was the call with him and not with current CEO Henning Kagermann?
The irony was that Jim Shepherd and I had to leave a meeting at Oracle’s headquarters to take the call with Dr. Plattner. Shortly before excusing ourselves, I bet our hosts that the news would be that Shai Agassi, president of SAP’s Product and Technology Group, would be leaving the firm. Mr. Agassi had been Dr. Plattner’s protégé.
Plattner to Agassi: “You’re the heir apparent”
For the next 40 minutes or so, Jim Shepherd and I talked to Dr. Plattner about Mr. Agassi’s sudden departure. Mr. Agassi had joined SAP six years ago when the ERP giant acquired TopTier, a portal vendor, for $400M. At the time, the most amazing point of the acquisition was the price, 20 times trailing revenue. Since that time, Mr. Agassi had enjoyed a meteoric rise.
Dr. Plattner said he had told Mr. Agassi 15 months ago that he planned to make him co-CEO of SAP AG, and that he was the “heir apparent.” The plans went awry last month when SAP’s supervisory board extended Mr. Kagermann’s contract two more years to May 31, 2009.
Dr. Plattner talked to Mr. Agassi about the board’s decision and told him to think about his plans during a vacation. A few weeks later, Mr. Agassi told his very disappointed mentor that he wouldn’t wait for the top spot. Dr. Plattner then told us that they discussed Mr. Agassi’s resignation which was offered to and accepted by the supervisory board. The resignation is effective April 1. Noting the date, the co-founder assured us that “it’s not an April Fool’s joke.”
According to the press release, Mr. Agassi will remain as a “special consultant to the office of the Chairman of the Supervisory Board on technology, innovation, and competitive trends.” The release also said that he would be exploring new opportunities, including “alternative energy and environmental policy issues, as well as the future of Israel.” While I have not talked to Mr. Agassi since the news, I think there is a high likelihood that he ends up at a venture capital firm, at least in the near term. This would allow him to spend more time with his family. While at SAP, Mr. Agassi had maintained a grueling travel schedule.
Odd timing with 2.5 days left in the quarter
The phone call was on Wednesday—the middle of the last week of the first quarter. This is a crucial period for SAP, as it comes after Oracle had just posted strong growth in the applications business and claimed it was closing the gap with SAP.
Naturally, our first question was about the timing of the call. Dr. Plattner explained that the news was slowly leaking out and that SAP needed to make the announcement.
We followed that with a question about Mr. Agassi’s successor. Rather than name one person, Dr. Plattner said that the company was bringing back the Executive Council, which consists of five corporate officers reporting to Mr. Kagermann. The council will be responsible for synchronizing the branding, user interface, architecture and strategy, joint repository, and NetWeaver plans around SAP’s three product lines: SAP Business Suite (formerly mySAP), BusinessOne, and the much talked about A1S line that has not been officially launched.
Executive council members include Doug Merritt (responsible for the “development of software for the business user”), Klaus Kreplin (leads NetWeaver technology), Jim Hagemann Snabe (heads SAP Business Suite), Michael Kleinemeier (heads collaboration and takes over the industry development reins from Mr. Snabe), and Bob Stutz (leads CRM).
All of the members have extensive SAP and/or applications experience. While I don’t know Mr. Kleinemeier, he had been president of SAP EMEA Central and managing director of SAP Germany. Mr. Kreplin and Mr. Snabe have been with SAP for more than a decade. The others have been with SAP for less than two years. Mr. Merritt is a former PeopleSoft executive running the human capital management (HCM) business unit. Prior to joining SAP, Mr. Stutz’s responsibilities including managing Siebel’s 21 vertical product lines.
Who will take Shai’s place?
In terms of which council member succeeds Mr. Agassi, the answer seems to be all of them, and maybe Peter Zencke, too. If Mr. Snabe moved to the United States, it would be tempting to name him as the “new Shai.” Instead, the plans are for him to remain at SAP headquarters. Mr. Merritt appears to be the key executive in Palo Alto. He has a lot of the new application initiatives including the nascent GRC (governance, risk, and compliance) unit, the joint Duet effort with Microsoft, and analytics. He also heads all of the U.S. labs. In terms of head count, though, Mr. Kreplin runs the largest development group thanks to the continued expansion of the NetWeaver suite.
As for Dr. Zencke, he is a member of the executive board, a level above the executive council. I mention him because he is leading the A1S development team. Dr. Plattner noted that 2,500 of SAP’s engineers report in to Dr. Zencke, and that he has more than 50% of the NetWeaver team.
We asked Dr. Plattner if he would be taking a more active role at the company. He said that “I will talk at SAPPHIRE, but I won’t be designing the third generation,” a reference to the new A1S line. The first two generations were R/2 and the ever evolving R/3/mySAP/SAP Business Suite.
Leo Apotheker named Deputy CEO
In the same press release, SAP named Leo Apotheker as deputy CEO. While this is kind of an odd title for a high-tech company, it seems clear that he is now the No. 2 person at SAP. Mr. Apotheker had been president of customer solutions and operations, which encompasses all of SAP’s sales and marketing.
Bill McDermott also gains more responsibility. In addition to the Americas, he is now responsible for the Asia-Pacific and Japan regions. This news delighted at least one competitor who told us that Mr. McDermott was a formidable presence in U.S. deals. He figures that the SAP executive will be less of a threat now that he has added at least 12 more time zones to his territory.
What’s the impact of Shai’s departure on SAP?
On the flight back from California, Jim Shepherd and I talked about the implications of Mr. Agassi’s departure. While Mr. Agassi was SAP’s best public speaker and the face of its technology vision, the focus shifted too much from the applications.
Here’s Shep’s take:
“I think that Shai’s interest was always technology instead of applications. He never understood that SAP’s great strength has always been its focus on business problems and business processes. Shifting the debate from functionality to technical elegance was a critical error. It leveled the playing field and allowed Oracle and the infrastructure players back in the game.
SAP was always unique in its ability to talk to, and appeal to the senior executives in a company while everyone else was relegated to courting the IT department. Shai’s obsession with NetWeaver and service-oriented architectures (SOAs) was bound to alienate a development organization that had always been oriented to solving complex business and industry problems. Even Peter Zencke has always understood that the proper purpose of technology is to address a manufacturing scheduling dilemma or support a supply chain decision—not to create a cooler composite app development tool.
I think once it gets back to a situation where application development is king and technology development is a supporting role, the compatibility issues, both social and technical, will start to go away.”
Shep is being too kind. Reducing the politics and the internal tensions will take some time. As I write this, e-mails are coming in from customers and former SAP employees weighing in on the Mr. Agassi and his NetWeaver legacy. As one person described it, NetWeaver is a “collection of non-integrated technologies with separate release cycles and QA (quality assurance) processes.” The writer could have added that development is spread all over many of SAP’s 10 major labs, too, adding to the complexity of the release management and QA processes.
How did SAP do in Q1?
By the time you read this, SAP’s quarter will have ended. Will the news of the last two weeks have had any impact on deals that were expected to close? Or, do buyers not care? What do you think Shai Agassi’s legacy will be?
As always, I welcome your comments and ideas—brichardson@amrresearch.com.
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
FTD.de - IT+Telekommunikation - Nachrichten - Agassis Weggang stand länger fest
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
SAP-Aufsichtsratschef Hasso Plattner hat Spekulationen zurückgewiesen, wonach der überraschende Rückzug von Technologievorstand Shai Agassi mit der Klage des Konkurrenten Oracle zusammenhängen könnte. Bereits zwei Tage vor Bekanntwerden der Klage habe Agassi sich entschieden, SAP zu verlassen.
FTD.de - Das Kapital - Das Kapital - SAP entgeht einer Nachfolgeproblematik
FTD.de - Das Kapital - Das Kapital - SAP entgeht einer Nachfolgeproblematik
Am meisten ärgern wird man sich im SAP- Vorstand wohl über das suboptimale Timing von Shai Agassi, um seinen Rücktritt bekannt zu geben. Weiteres Thema in diesem Kapital: Unternehmenskredite.
Am meisten ärgern wird man sich im SAP- Vorstand wohl über das suboptimale Timing von Shai Agassi, um seinen Rücktritt bekannt zu geben. Weiteres Thema in diesem Kapital: Unternehmenskredite.
Thursday, March 29, 2007
The Nine (Plus) Lives of Ariba and i2 Technologies | AMR Research
The Nine (Plus) Lives of Ariba and i2 Technologies | AMR Research
Ariba and i2 find new life
Two years ago Ariba and i2 Technologies had bleak outlooks. But the companies have renewed vigor now, having distinguished themselves as resilient software companies that are positioned to maintain or take share as competition increases. As companies continue to strive for more revenue, higher margins, and lower costs, Ariba and i2 move front and center on the competitive landscape.
For its part, Ariba should continue to be a major player in sourcing and procurement, gaining more traction in direct materials, with demand for its Low Cost Country Sourcing (LCCS) and Commodity Services products. Overall development of the sourcing and procurement market is providing a tailwind for Ariba, as the sourcing and procurement market continues to grow 9% to10% in the next couple of years, following at least 9% expansion in 2006. At the company-specific level, continued execution on the successful transition to an on-demand model could generate even higher-than-forecast growth. Current AMR Research sourcing and procurement revenue numbers have Ariba second to SAP. While SAP’s numbers showed an increase in 2006 with the acquisition, we expect Ariba to grow by at least 5% based on its successful transition to software-as-a-service (SaaS) technology and the resulting increased revenue opportunities.
Meanwhile, i2 is deriving more growth in sourcing and procurement with its direct materials support and product lifecycle management (PLM) partnership with Dassault Systemes. i2 is hitting on almost all cylinders since its reorganization, and continues to deliver innovative products into a increasingly receptive client base despite a more competitive landscape. i2 is also taking advantage of partnerships to extend its ecosystem, making inroads where it had lost mindshare to SAP. Also, many companies are less likely to be using end-to-end packaged suites and are instead making use of a set of well-integrated tools targeting distinct business problems, bolstered by a focus on strong business processes. i2 currently ranks third in supply chain management (SCM) revenue behind SAP and Oracle by 6% to 8%.
Details on Agile and i2’s recoveries and market factors involved in future success can be found in “The Nine (Plus) Lives of Ariba and i2 Technologies.”
Ariba and i2 find new life
Two years ago Ariba and i2 Technologies had bleak outlooks. But the companies have renewed vigor now, having distinguished themselves as resilient software companies that are positioned to maintain or take share as competition increases. As companies continue to strive for more revenue, higher margins, and lower costs, Ariba and i2 move front and center on the competitive landscape.
For its part, Ariba should continue to be a major player in sourcing and procurement, gaining more traction in direct materials, with demand for its Low Cost Country Sourcing (LCCS) and Commodity Services products. Overall development of the sourcing and procurement market is providing a tailwind for Ariba, as the sourcing and procurement market continues to grow 9% to10% in the next couple of years, following at least 9% expansion in 2006. At the company-specific level, continued execution on the successful transition to an on-demand model could generate even higher-than-forecast growth. Current AMR Research sourcing and procurement revenue numbers have Ariba second to SAP. While SAP’s numbers showed an increase in 2006 with the acquisition, we expect Ariba to grow by at least 5% based on its successful transition to software-as-a-service (SaaS) technology and the resulting increased revenue opportunities.
Meanwhile, i2 is deriving more growth in sourcing and procurement with its direct materials support and product lifecycle management (PLM) partnership with Dassault Systemes. i2 is hitting on almost all cylinders since its reorganization, and continues to deliver innovative products into a increasingly receptive client base despite a more competitive landscape. i2 is also taking advantage of partnerships to extend its ecosystem, making inroads where it had lost mindshare to SAP. Also, many companies are less likely to be using end-to-end packaged suites and are instead making use of a set of well-integrated tools targeting distinct business problems, bolstered by a focus on strong business processes. i2 currently ranks third in supply chain management (SCM) revenue behind SAP and Oracle by 6% to 8%.
Details on Agile and i2’s recoveries and market factors involved in future success can be found in “The Nine (Plus) Lives of Ariba and i2 Technologies.”
FTD.de - Medien+Internet - Nachrichten - SAP-Technologievorstand Agassi will nicht warten - und geht
FTD.de - Medien+Internet - Nachrichten - SAP-Technologievorstand Agassi will nicht warten - und geht
Shai Agassi kehrt dem deutschen Softwarekonzern SAP den Rücken. Der Produktvorstand galt als Top-Kandidat für die Ära nach dem amtierenden Konzernchef Henning Kagermann. Doch Agassis Geduld reichte nicht aus.
Shai Agassi kehrt dem deutschen Softwarekonzern SAP den Rücken. Der Produktvorstand galt als Top-Kandidat für die Ära nach dem amtierenden Konzernchef Henning Kagermann. Doch Agassis Geduld reichte nicht aus.
Wednesday, March 28, 2007
FT.com / Companies / IT - SAP hit by loss of research chief
FT.com / Companies / IT - SAP hit by loss of research chief
SAP hit by loss of research chief
By Gerrit Wiesmann in Frankfurt
Published: March 28 2007 20:05 | Last updated: March 28 2007 20:05
Germany’s SAP, the world’s biggest maker of business software, took another hit on Wednesday night with the departure of research and development head Shai Agassi, long tipped as the group’s future chief executive.
People close to SAP said Mr Agassi’s decision led to the appointment of marketing head Léo Apotheker to the new post of deputy chief executive, formalising his status as the heir apparent to Henning Kagermann.
These people said Mr Agassi seemed to have lost hope of speedy promotion or did not like the prospect of becoming co-CEO with Mr Apotheker. He did not appear to be switching to a rival software company, they stressed,
The loss of Mr Agassi, 39, a former software entrepreneur, could further worry investors beset by doubts that SAP can appeal to smaller businesses after coming to dominate sales to big companies.
Mr Agassi’s move comes only weeks after chief executive Henning Kagermann, 60, extended his contract by only one year – a clear sign he was preparing to hand over the reins of the company soon.
Though seen as a successor to the cerebral Mr Kagermann, Mr Agassi’s youth and his base in California always made him more contentious among SAP’s German staff than Mr Apotheker.
Copyright The Financial Times Limited 2007
SAP hit by loss of research chief
By Gerrit Wiesmann in Frankfurt
Published: March 28 2007 20:05 | Last updated: March 28 2007 20:05
Germany’s SAP, the world’s biggest maker of business software, took another hit on Wednesday night with the departure of research and development head Shai Agassi, long tipped as the group’s future chief executive.
People close to SAP said Mr Agassi’s decision led to the appointment of marketing head Léo Apotheker to the new post of deputy chief executive, formalising his status as the heir apparent to Henning Kagermann.
These people said Mr Agassi seemed to have lost hope of speedy promotion or did not like the prospect of becoming co-CEO with Mr Apotheker. He did not appear to be switching to a rival software company, they stressed,
The loss of Mr Agassi, 39, a former software entrepreneur, could further worry investors beset by doubts that SAP can appeal to smaller businesses after coming to dominate sales to big companies.
Mr Agassi’s move comes only weeks after chief executive Henning Kagermann, 60, extended his contract by only one year – a clear sign he was preparing to hand over the reins of the company soon.
Though seen as a successor to the cerebral Mr Kagermann, Mr Agassi’s youth and his base in California always made him more contentious among SAP’s German staff than Mr Apotheker.
Copyright The Financial Times Limited 2007
FT.com / Technology - Valley view: Will twittering be big business?
FT.com / Technology - Valley view: Will twittering be big business?
Valley view: Will twittering be big business?
Chris Nuttall
Published: March 28 2007 10:21 | Last updated: March 28 2007 10:21
Spring has sprung, the birds are singing and San Francisco is hearts a-flutter over a Web 2.0 service called Twitter.
I encountered it first in January at the Consumer Electronics Show in Las Vegas. Tekkies were using it to track events and each other’s movements around the vast show. It has been growing exponentially ever since.
Twitter essentially allows you to broadcast SMS-type messages to friends and the public about what you’re up to, with an archive of your one-sentence twitterings available on the twitter.com website.
Opinions are divided on whether to love or hate Twitter and whether it is full of useless minutiae or useful information. Photo blogger Thomas Hawk finds it as addictive as Flickr and says: “It is the micro blogging platform du jour, allows me to stay in contact with over 400 people, serves as a great daily record of what I’ve been up to for archive purposes, and is fun as hell.”
Others might say this is taking Web 2.0’s interactive tools and blogging into the realms of the absurd.
Just looking at the current twitterings on the public page, there are some interesting comments but also entries such as “same thing I was doing eight hours ago”, “uploading a new image”, “getting dinner on my way home” and commercial messages including the BBC posting what is up next on the World Service.
These may tell us little about the zeitgeist but there is no doubt that Twitter itself is very much of the moment – the Hitwise research team says its traffic has risen 55 per cent in the space of a week, and although still niche, it is already spawning related sites such as Twittersearch, Twitterholic, which ranks “twits” by postings, and Twittermaps and Twittervision, mash-ups that mix Google maps of the world with the latest twitterings and their locations.
What is also interesting about Twitter is what it says about Web 2.0 and Silicon Valley’s culture. Valley companies have a habit of working on one idea until a better one comes along. This is not a world of carefully hatched business plans leading to world domination, it is one of happenstance and serendipity, quick adaptations and imaginative improvisations on existing themes.
In Twitter’s case, Evan Williams is behind the service, an entrepreneur and developer who founded Blogger, the blogging service bought by Google in 2003. He went on to create Odeo, a podcasting technology that has made little impression, but one of his engineers came up with Twitter as a project and this has now changed the course of the business.
But what is the business? Williams doesn’t know and doesn’t seem to care. Build a great user experience and the business model will follow, he told the San Francisco Chronicle.
I have heard this more than once in recent weeks from Web 2.0 companies, including Izimi, a British company that is following other foreign start-ups in setting up in San Francisco, the heart of the movement.
This seems part of a new confidence and independence that Web 2.0 fosters. The code-sharing that goes on, the coffee-shop offices and the cheap technology now available means these small companies can survive for long periods without the need to seek venture capital or go to the markets.
It’s a refreshing change from the 1999 bubble of MBAs with carefully prepared business plans designed to attract venture capital. There were too many me-too ideas and everyone had the same SASSy proposals for making money, as in Subscriptions, Advertising, selling Services or earning Sponsorship. All the while, they had sweet FA – as in Flotation or Acquisition – in the back of their minds as the best way to cash in.
So in contrast, the Web 2.0 crowd seem happy to, and can afford to, go with the flow of where their users take their services. Look at Google, they point out, it went four years before finding a business model, and a pretty spectacular one at that.
This is all very well, but there is only one Google, and MySpace and YouTube have achieved similar dominance in social networking and online video. The future could be big for Twitter or it could end up as a passing fad – already many people are learning to turn down or turn off the constant messaging to their phones.
Instead of understanding their market in advance with focus groups, Web 2.0 companies are doing it on the fly by observing user behaviour. They are user-driven in every sense and will live or die by those users and their attention spans.
The best outcome for most would be an acquisition by a larger company, in the way that Google and Yahoo! have picked up Web 2.0 services such as Del.icio.us, Flickr, JotSpot, Keyhole, Konfabulator, Oddpost, Upcoming and Writely.
The rest need to partner and club together, according to a new Forrester Research survey, if they want to address enterprises with their services. Businesses made clear they wanted to buy suites of Web 2.0 applications not stand-alone services.
And mass-market consumers may prefer integrated offerings rather than idle twitterings as well.
Copyright The Financial Times Limited 2007
Valley view: Will twittering be big business?
Chris Nuttall
Published: March 28 2007 10:21 | Last updated: March 28 2007 10:21
Spring has sprung, the birds are singing and San Francisco is hearts a-flutter over a Web 2.0 service called Twitter.
I encountered it first in January at the Consumer Electronics Show in Las Vegas. Tekkies were using it to track events and each other’s movements around the vast show. It has been growing exponentially ever since.
Twitter essentially allows you to broadcast SMS-type messages to friends and the public about what you’re up to, with an archive of your one-sentence twitterings available on the twitter.com website.
Opinions are divided on whether to love or hate Twitter and whether it is full of useless minutiae or useful information. Photo blogger Thomas Hawk finds it as addictive as Flickr and says: “It is the micro blogging platform du jour, allows me to stay in contact with over 400 people, serves as a great daily record of what I’ve been up to for archive purposes, and is fun as hell.”
Others might say this is taking Web 2.0’s interactive tools and blogging into the realms of the absurd.
Just looking at the current twitterings on the public page, there are some interesting comments but also entries such as “same thing I was doing eight hours ago”, “uploading a new image”, “getting dinner on my way home” and commercial messages including the BBC posting what is up next on the World Service.
These may tell us little about the zeitgeist but there is no doubt that Twitter itself is very much of the moment – the Hitwise research team says its traffic has risen 55 per cent in the space of a week, and although still niche, it is already spawning related sites such as Twittersearch, Twitterholic, which ranks “twits” by postings, and Twittermaps and Twittervision, mash-ups that mix Google maps of the world with the latest twitterings and their locations.
What is also interesting about Twitter is what it says about Web 2.0 and Silicon Valley’s culture. Valley companies have a habit of working on one idea until a better one comes along. This is not a world of carefully hatched business plans leading to world domination, it is one of happenstance and serendipity, quick adaptations and imaginative improvisations on existing themes.
In Twitter’s case, Evan Williams is behind the service, an entrepreneur and developer who founded Blogger, the blogging service bought by Google in 2003. He went on to create Odeo, a podcasting technology that has made little impression, but one of his engineers came up with Twitter as a project and this has now changed the course of the business.
But what is the business? Williams doesn’t know and doesn’t seem to care. Build a great user experience and the business model will follow, he told the San Francisco Chronicle.
I have heard this more than once in recent weeks from Web 2.0 companies, including Izimi, a British company that is following other foreign start-ups in setting up in San Francisco, the heart of the movement.
This seems part of a new confidence and independence that Web 2.0 fosters. The code-sharing that goes on, the coffee-shop offices and the cheap technology now available means these small companies can survive for long periods without the need to seek venture capital or go to the markets.
It’s a refreshing change from the 1999 bubble of MBAs with carefully prepared business plans designed to attract venture capital. There were too many me-too ideas and everyone had the same SASSy proposals for making money, as in Subscriptions, Advertising, selling Services or earning Sponsorship. All the while, they had sweet FA – as in Flotation or Acquisition – in the back of their minds as the best way to cash in.
So in contrast, the Web 2.0 crowd seem happy to, and can afford to, go with the flow of where their users take their services. Look at Google, they point out, it went four years before finding a business model, and a pretty spectacular one at that.
This is all very well, but there is only one Google, and MySpace and YouTube have achieved similar dominance in social networking and online video. The future could be big for Twitter or it could end up as a passing fad – already many people are learning to turn down or turn off the constant messaging to their phones.
Instead of understanding their market in advance with focus groups, Web 2.0 companies are doing it on the fly by observing user behaviour. They are user-driven in every sense and will live or die by those users and their attention spans.
The best outcome for most would be an acquisition by a larger company, in the way that Google and Yahoo! have picked up Web 2.0 services such as Del.icio.us, Flickr, JotSpot, Keyhole, Konfabulator, Oddpost, Upcoming and Writely.
The rest need to partner and club together, according to a new Forrester Research survey, if they want to address enterprises with their services. Businesses made clear they wanted to buy suites of Web 2.0 applications not stand-alone services.
And mass-market consumers may prefer integrated offerings rather than idle twitterings as well.
Copyright The Financial Times Limited 2007
Monday, March 26, 2007
Oracle/SAP Suit Highlights Care Required in Using Third-Party Support
Oracle/SAP Suit Highlights Care Required in Using Third-Party Support
Oracle has filed suit against SAP, alleging theft of intellectual property by SAP's TomorrowNow subsidiary. Customers using third-party support vendors should evaluate their contracts while monitoring the legal action's progress.
Oracle has filed suit against SAP, alleging theft of intellectual property by SAP's TomorrowNow subsidiary. Customers using third-party support vendors should evaluate their contracts while monitoring the legal action's progress.
Friday, March 23, 2007
FTD.de - Kommentare - Kommentar - SAP braucht härtere Bandagen
FTD.de - Kommentare - Kommentar - SAP braucht härtere Bandagen
Larry Ellison lässt nicht locker. Mit der Klage gegen SAP hat der Oracle-Chef dem Rivalen aus Walldorf einen weiteren Schlag versetzt. Von SAP-Computern sollen US-Mitarbeiter mit fremden Passwörtern in großem Stil Software und weitere Angebote des Konkurrenten heruntergeladen haben.
Larry Ellison lässt nicht locker. Mit der Klage gegen SAP hat der Oracle-Chef dem Rivalen aus Walldorf einen weiteren Schlag versetzt. Von SAP-Computern sollen US-Mitarbeiter mit fremden Passwörtern in großem Stil Software und weitere Angebote des Konkurrenten heruntergeladen haben.
FTD.de - IT+Telekommunikation - Nachrichten - SAP geht aggressiv gegen Oracle vor
FTD.de - IT+Telekommunikation - Nachrichten - SAP geht aggressiv gegen Oracle vor
Deutschlands größter Softwarekonzern hat angekündigt, sich aggressiv gegen die von seinem US-Konkurrenten Oracle erhobene Diebstahl-Klage zu wehren. Ins Detail geht SAP allerdings nicht.
Deutschlands größter Softwarekonzern hat angekündigt, sich aggressiv gegen die von seinem US-Konkurrenten Oracle erhobene Diebstahl-Klage zu wehren. Ins Detail geht SAP allerdings nicht.
FTD.de - IT+Telekommunikation - Nachrichten - Oracle verklagt SAP wegen Diebstahls
FTD.de - IT+Telekommunikation - Nachrichten - Oracle verklagt SAP wegen Diebstahls
Der erbitterte Konkurrenzkampf zwischen dem US-Softwarekonzern Oracle und dem deutschen Rivalen SAP hat eine neue Dimension erreicht: Oracle verklagte den Dax-Konzern in San Francisco.
Der erbitterte Konkurrenzkampf zwischen dem US-Softwarekonzern Oracle und dem deutschen Rivalen SAP hat eine neue Dimension erreicht: Oracle verklagte den Dax-Konzern in San Francisco.
Oracle’s Strong Quarter and the Case of the Purloined Passwords | AMR Research
Oracle’s Strong Quarter and the Case of the Purloined Passwords | AMR Research
My initial plan for this week’s First Thing Monday was to analyze Oracle’s 3Q07 results. While the third-quarter performance was the strongest in more than five years, the financial news was overshadowed by the company’s news that it is suing archrival SAP, alleging “corporate theft on a grand scale.” Here’s our analysis of both.
My initial plan for this week’s First Thing Monday was to analyze Oracle’s 3Q07 results. While the third-quarter performance was the strongest in more than five years, the financial news was overshadowed by the company’s news that it is suing archrival SAP, alleging “corporate theft on a grand scale.” Here’s our analysis of both.
Thursday, March 22, 2007
QAD Finishes Q4 Strong | AMR Research
QAD Finishes Q4 Strong | AMR Research
QAD closed out 2007 with a strong fourth quarter, but stealing the spotlight was the sneak peek into the firm’s future plans for deploying its ERP products.
QAD closed out 2007 with a strong fourth quarter, but stealing the spotlight was the sneak peek into the firm’s future plans for deploying its ERP products.
Wednesday, March 21, 2007
FTD.de - Medien+Internet - Nachrichten - Oracles Einkaufstour zahlt sich aus
FTD.de - Medien+Internet - Nachrichten - Oracles Einkaufstour zahlt sich aus
Der kalifornische Softwarekonzern Oracle profitiert von seiner mehrjährigen, weit über 22 Mrd. $ teuren Einkaufstour. Umsatz und Gewinn stiegen im dritten Quartal deutlich. Experten sorgen sich aber über die Risiken der Expansion - denn satt ist Oracle noch lange nicht.
Der kalifornische Softwarekonzern Oracle profitiert von seiner mehrjährigen, weit über 22 Mrd. $ teuren Einkaufstour. Umsatz und Gewinn stiegen im dritten Quartal deutlich. Experten sorgen sich aber über die Risiken der Expansion - denn satt ist Oracle noch lange nicht.
Oracle steigert Gewinn im dritten Quartal um 34,6 Prozent
Oracle steigert Gewinn im dritten Quartal um 34,6 Prozent
Der SAP-Konkurrent Oracle hat vor allem wegen starker Verkäufe neuer Softwareanwendungen im Quartal Gewinn und Umsatz stärker gesteigert als erwartet. Wie der Softwareriese am Dienstag nach amerikanische Börsenschluss mitteilte, kletterte der Nettogewinn im dritten Geschäftsquartal auf 1,03 Milliarden Dollar nach 765 Millionen Dollar im Vorjahreszeitraum. Der Umsatz legte um 27 Prozent zu auf 4,41 Milliarden Dollar. Oracle-Aktien gewannen nachbörslich drei Prozent. Finanzchefin Safra Catz sagte zu den Zahlen, im Quartal habe sich Oracle über alle Produktbereiche weltweit sehr stark entwickelt. Das Wachstum sei so hoch gewesen wie seit mehr als fünf Jahren nicht mehr. Die Erlöse mit Lizenzen aus neuer Software kletterten um 27 Prozent und damit stärker als vom Unternehmen mit 16 bis 22 Prozent erwartet. Analysten sagten, Oracles Marktanteil bei Unternehmens-Anwendungssoftware wachse schneller als der von SAP. Zudem zahle sich die Expansionsstrategie von Oracle aus. Oracle hat in den vergangenen drei Jahren mehr als 23 Milliarden Dollar für Zukäufe ausgegeben, unter anderem für die einstigen Rivalen Hyperion Solutions, PeopleSoft und Siebel Systems. Für das vierte Quartal rechnet Oracle mit einem Gewinn je Aktie von 34 Cent. Dies liegt im Rahmen der bisherigen Markterwartungen. Beim Umsatz prognostiziert das Unternehmen ein Wachstum von zehn bis 14 Prozent. Im dritten Quartal lag der Gewinn je Aktie bei 20 Cent. Oracle-Aktien legten nachbörslich auf 18,14 Dollar zu. Den offiziellen Handel hatten die Titel bereits 2,15 Prozent im Plus bei 17,55 Dollar beendet. Seit Montag haben sie damit fast fünf Prozent zugelegt. (Reuters)
Der SAP-Konkurrent Oracle hat vor allem wegen starker Verkäufe neuer Softwareanwendungen im Quartal Gewinn und Umsatz stärker gesteigert als erwartet. Wie der Softwareriese am Dienstag nach amerikanische Börsenschluss mitteilte, kletterte der Nettogewinn im dritten Geschäftsquartal auf 1,03 Milliarden Dollar nach 765 Millionen Dollar im Vorjahreszeitraum. Der Umsatz legte um 27 Prozent zu auf 4,41 Milliarden Dollar. Oracle-Aktien gewannen nachbörslich drei Prozent. Finanzchefin Safra Catz sagte zu den Zahlen, im Quartal habe sich Oracle über alle Produktbereiche weltweit sehr stark entwickelt. Das Wachstum sei so hoch gewesen wie seit mehr als fünf Jahren nicht mehr. Die Erlöse mit Lizenzen aus neuer Software kletterten um 27 Prozent und damit stärker als vom Unternehmen mit 16 bis 22 Prozent erwartet. Analysten sagten, Oracles Marktanteil bei Unternehmens-Anwendungssoftware wachse schneller als der von SAP. Zudem zahle sich die Expansionsstrategie von Oracle aus. Oracle hat in den vergangenen drei Jahren mehr als 23 Milliarden Dollar für Zukäufe ausgegeben, unter anderem für die einstigen Rivalen Hyperion Solutions, PeopleSoft und Siebel Systems. Für das vierte Quartal rechnet Oracle mit einem Gewinn je Aktie von 34 Cent. Dies liegt im Rahmen der bisherigen Markterwartungen. Beim Umsatz prognostiziert das Unternehmen ein Wachstum von zehn bis 14 Prozent. Im dritten Quartal lag der Gewinn je Aktie bei 20 Cent. Oracle-Aktien legten nachbörslich auf 18,14 Dollar zu. Den offiziellen Handel hatten die Titel bereits 2,15 Prozent im Plus bei 17,55 Dollar beendet. Seit Montag haben sie damit fast fünf Prozent zugelegt. (Reuters)
Tuesday, March 20, 2007
SAP macht Ernst im Mittelstand - computerwoche.de - Archiv 2007 / 12
SAP macht Ernst im Mittelstand - computerwoche.de - Archiv 2007 / 12
Schon seit fünf Jahren baut der Softwarekonzern angeblich an seiner neuen Mittelstandslösung. Nun bläst das Management zum Sturm auf die bislang SAP-resistenten Kleinbetriebe.
Schon seit fünf Jahren baut der Softwarekonzern angeblich an seiner neuen Mittelstandslösung. Nun bläst das Management zum Sturm auf die bislang SAP-resistenten Kleinbetriebe.
FT.com / Companies / IT - Oracle shares surge as earnings soar
FT.com / Companies / IT - Oracle shares surge as earnings soar
Oracle bounced back to report robust growth across its range of software products in the latest quarter, shrugging off the softness in sales that was apparent recently at arch-rival SAP.
Oracle bounced back to report robust growth across its range of software products in the latest quarter, shrugging off the softness in sales that was apparent recently at arch-rival SAP.
Friday, March 16, 2007
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
Bis dahin soll das Paket, das mit neuen Vertriebs- und Servicemodellen verbunden ist, von einzelnen Anwendern erprobt werden. "Hier auf der Cebit zeigen wir ausgewählten Kunden und Partnern das Produkt", sagte Kagermann.
Das neue Angebot ist ein wichtiger Baustein für SAPs künftiges Geschäft. Der weltgrößte Hersteller von Programmen zur Unternehmenssteuerung will in den kommenden Jahren im Mittelstand besonders stark wachsen. Um mehr Kunden in diesem Marktsegment gewinnen zu können, hat das Unternehmen Anfang des Jahres ein neues Produkt angekündigt. In die Mittelstandssoftware mit dem Codenamen A1S will SAP rund 300 bis 400 Mio. Euro investieren.
Mittelstand gilt als besonders attraktiv
Der Mittelstand gilt als besonders attraktiv für Firmensoftwarehersteller, weil hier die Nachfrage stark wächst. Von der neuen Software verspricht sich SAP ab 2010 rund 760 Mio. Euro zusätzlichen Jahresumsatz und 10.000 neue Kunden pro Jahr. Das Produkt soll als Software zur Miete im Internet angeboten werden - ein Geschäftsmodell, mit dem andere Anbieter in den vergangenen Jahren hohe Wachstumsraten erzielt haben. Die SAP-Software soll vor allem über Internet und Telefon verkauft werden. Sie ist auf Unternehmen zugeschnitten, die sich mit einer Standardlösung zufriedengeben und auf eine firmenspezifische Anpassung verzichten können.
Das ist ein neues Geschäftsmodell, und das bringen sie nicht an einem Tag heraus", sagte Hans-Peter Klaey, bei SAP weltweit für das Mittelstandsgeschäft verantwortlich, der FTD. Im laufenden Jahr soll es mehrere Schritte geben, um das Produkt, aber auch Service und Marktzugangsstrategien zu prüfen.
Laut Kagermann wird das neue Angebot im zweiten und dritten Quartal ausgewählten Kunden vorgestellt. Im zweiten Halbjahr können erste Unternehmen mit dem Programm arbeiten. Dann soll das Geschäftsmodell auf den Masseneinsatz ausgerichtet werden. Weil SAP nicht nur die Software fertigstellen, sondern auch die nötige Infrastruktur und den Service aufbauen muss, ist der Zeitplan nicht in Stein gemeißelt. "All die Dinge sind Risikofaktoren, die natürlich zu anderen Einschätzungen führen können", sagte Kagermann.
Vertrauen der Anleger soll zurückgewonnen werden
Der SAP-Chef hofft, während der Phase der Einführung des neuen Produkts das Vertrauen der Investoren wiederzugewinnen. Das Unternehmen hatte zuletzt enttäuscht: Sowohl die Ankündigung der zusätzlichen Investitionen als auch eine unter den Erwartungen gebliebene Geschäftsentwicklung im vergangenen Jahr ließen den Aktienkurs fallen.
Kagermann schloss nicht aus, dass SAP weiteren Kundengruppen künftig Software zur Miete anbietet. "Wenn das funktioniert, will ich nicht ausschließen, dass wir mit dem Ansatz auch in andere Schichten hineingehen", sagte er. Allerdings ist er sich sicher, dass das neue standardisierte Produkt für den Mittelstand nicht von Großkunden eingesetzt werden wird. Der SAP-Chef sieht auch keine Gefahr für die bereits etablierten Produkte seines Konzerns. "Wir wollen nicht ein bestehendes Geschäft ablösen, sondern ein Zusatzgeschäft eröffnen", sagte Kagermann.
Der weltgrößte Hersteller von Unternehmenssoftware ist für sein Wachstum auf den Mittelstand angewiesen: Bis 2010 soll der Anteil, den diese Kunden zum konzernweiten Umsatz beisteuern, von heute 30 Prozent auf 40 bis 45 Prozent wachsen. Bis 2010 will der Anbieter den Kundenstamm von 38.000 auf 100.000 ausbauen. Als mittelständisch gelten Firmen mit bis zu 2500 Mitarbeitern.
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
Bis dahin soll das Paket, das mit neuen Vertriebs- und Servicemodellen verbunden ist, von einzelnen Anwendern erprobt werden. "Hier auf der Cebit zeigen wir ausgewählten Kunden und Partnern das Produkt", sagte Kagermann.
Das neue Angebot ist ein wichtiger Baustein für SAPs künftiges Geschäft. Der weltgrößte Hersteller von Programmen zur Unternehmenssteuerung will in den kommenden Jahren im Mittelstand besonders stark wachsen. Um mehr Kunden in diesem Marktsegment gewinnen zu können, hat das Unternehmen Anfang des Jahres ein neues Produkt angekündigt. In die Mittelstandssoftware mit dem Codenamen A1S will SAP rund 300 bis 400 Mio. Euro investieren.
Mittelstand gilt als besonders attraktiv
Der Mittelstand gilt als besonders attraktiv für Firmensoftwarehersteller, weil hier die Nachfrage stark wächst. Von der neuen Software verspricht sich SAP ab 2010 rund 760 Mio. Euro zusätzlichen Jahresumsatz und 10.000 neue Kunden pro Jahr. Das Produkt soll als Software zur Miete im Internet angeboten werden - ein Geschäftsmodell, mit dem andere Anbieter in den vergangenen Jahren hohe Wachstumsraten erzielt haben. Die SAP-Software soll vor allem über Internet und Telefon verkauft werden. Sie ist auf Unternehmen zugeschnitten, die sich mit einer Standardlösung zufriedengeben und auf eine firmenspezifische Anpassung verzichten können.
Das ist ein neues Geschäftsmodell, und das bringen sie nicht an einem Tag heraus", sagte Hans-Peter Klaey, bei SAP weltweit für das Mittelstandsgeschäft verantwortlich, der FTD. Im laufenden Jahr soll es mehrere Schritte geben, um das Produkt, aber auch Service und Marktzugangsstrategien zu prüfen.
Laut Kagermann wird das neue Angebot im zweiten und dritten Quartal ausgewählten Kunden vorgestellt. Im zweiten Halbjahr können erste Unternehmen mit dem Programm arbeiten. Dann soll das Geschäftsmodell auf den Masseneinsatz ausgerichtet werden. Weil SAP nicht nur die Software fertigstellen, sondern auch die nötige Infrastruktur und den Service aufbauen muss, ist der Zeitplan nicht in Stein gemeißelt. "All die Dinge sind Risikofaktoren, die natürlich zu anderen Einschätzungen führen können", sagte Kagermann.
Vertrauen der Anleger soll zurückgewonnen werden
Der SAP-Chef hofft, während der Phase der Einführung des neuen Produkts das Vertrauen der Investoren wiederzugewinnen. Das Unternehmen hatte zuletzt enttäuscht: Sowohl die Ankündigung der zusätzlichen Investitionen als auch eine unter den Erwartungen gebliebene Geschäftsentwicklung im vergangenen Jahr ließen den Aktienkurs fallen.
Kagermann schloss nicht aus, dass SAP weiteren Kundengruppen künftig Software zur Miete anbietet. "Wenn das funktioniert, will ich nicht ausschließen, dass wir mit dem Ansatz auch in andere Schichten hineingehen", sagte er. Allerdings ist er sich sicher, dass das neue standardisierte Produkt für den Mittelstand nicht von Großkunden eingesetzt werden wird. Der SAP-Chef sieht auch keine Gefahr für die bereits etablierten Produkte seines Konzerns. "Wir wollen nicht ein bestehendes Geschäft ablösen, sondern ein Zusatzgeschäft eröffnen", sagte Kagermann.
Der weltgrößte Hersteller von Unternehmenssoftware ist für sein Wachstum auf den Mittelstand angewiesen: Bis 2010 soll der Anteil, den diese Kunden zum konzernweiten Umsatz beisteuern, von heute 30 Prozent auf 40 bis 45 Prozent wachsen. Bis 2010 will der Anbieter den Kundenstamm von 38.000 auf 100.000 ausbauen. Als mittelständisch gelten Firmen mit bis zu 2500 Mitarbeitern.
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
FT.com / Companies / IT - SAP eager for new product launch
FT.com / Companies / IT - SAP eager for new product launch
By Gerrit Wiesmann
Published: March 16 2007 02:00 | Last updated: March 16 2007 02:00
Henning Kagermann, chief executive of SAP, said he hoped the phased introduction of a new subscription service over the next three quarters would restore investor confidence after difficult months.
The world's largest maker of business software expects an online product allowing small companies to manage client relations or factory inventories to hit the mass market around the end of the year.
"We're at the start of a number of phases that will test how well A1S works," Mr Kagermann told the Financial Times. "I think positive investors will say quite quickly they like what they see. The critical ones will need more time."
SAP is under pressure after missing growth targets in its big-company business in two quarters in 2006. It also said it would spend €400m ($529m) until 2008 to launch the new product for small companies, lowering profits.
Investors worry this signals the company is struggling to cater to small companies as well as big ones. The stock has fallen 15 per cent to about €34 per share since January, well off a peak of €47 seen last spring.
Mr Kagermann dismissed whispers of a takeover and said SAP would stick to its tradition of investing in organic growth, even if there would "always be cases" in which investments hit earnings.
Speculation that founders Hasso Plattner, Klaus Tschira and Dietmar Hopp were in talks to sell their30 per cent stake in SAP to private equity was "like déjà vu", he said, referring to past takeover talk. "I made three calls and then we were able to publish a denial," he said. Shares had suffered under the product announcement, which came in early 2007 to allow time for testing. "But the stock will recover."
Taking a swipe at acquisitive US rival Oracle, Mr Kagermann said he was "amazed" a company could reap applause for buying rivals "with money that still has to be earned" while SAP met with scepticism.
"I can understand that someone wants to buy other technology if he can't do it himself," he said. "But it's not the only model. Ifthe market doesn't digest this, we will simply have to prove [our model] works."
He said SAP would "confront" selected customers with the new subscription system for small-company software in the second and third quarters and raise the volume of users until the end of the year.
"At that point, we have to decide whether the system is volume ready," he said, voicing confidence the web-based service would be opened to general access by the start of next year at the latest.
The one-size-fits-all software that SAP will "host" for its clients on its computers marks a break and a gamble for the Walldorf-based company, which has thrived as a bespoke provider to big companies.
In this sector it holds about a quarter of the market, easily twice as much as Oracle. But its success means SAP has had to turn to small and medium-sized companies to keep growing strongly.
Mr Kagermann said investors were nervous as the new product was coupled with a new business model. While big groups buy SAP's software for their offices, small companies will rent A1S and use it online.
Installing databases meant the subscription model had big start-up costs. "People know this is the better model. But the upfront cost means few dare to introduce it," he said. "You only start printing money later."
Copyright The Financial Times Limited 2007
By Gerrit Wiesmann
Published: March 16 2007 02:00 | Last updated: March 16 2007 02:00
Henning Kagermann, chief executive of SAP, said he hoped the phased introduction of a new subscription service over the next three quarters would restore investor confidence after difficult months.
The world's largest maker of business software expects an online product allowing small companies to manage client relations or factory inventories to hit the mass market around the end of the year.
"We're at the start of a number of phases that will test how well A1S works," Mr Kagermann told the Financial Times. "I think positive investors will say quite quickly they like what they see. The critical ones will need more time."
SAP is under pressure after missing growth targets in its big-company business in two quarters in 2006. It also said it would spend €400m ($529m) until 2008 to launch the new product for small companies, lowering profits.
Investors worry this signals the company is struggling to cater to small companies as well as big ones. The stock has fallen 15 per cent to about €34 per share since January, well off a peak of €47 seen last spring.
Mr Kagermann dismissed whispers of a takeover and said SAP would stick to its tradition of investing in organic growth, even if there would "always be cases" in which investments hit earnings.
Speculation that founders Hasso Plattner, Klaus Tschira and Dietmar Hopp were in talks to sell their30 per cent stake in SAP to private equity was "like déjà vu", he said, referring to past takeover talk. "I made three calls and then we were able to publish a denial," he said. Shares had suffered under the product announcement, which came in early 2007 to allow time for testing. "But the stock will recover."
Taking a swipe at acquisitive US rival Oracle, Mr Kagermann said he was "amazed" a company could reap applause for buying rivals "with money that still has to be earned" while SAP met with scepticism.
"I can understand that someone wants to buy other technology if he can't do it himself," he said. "But it's not the only model. Ifthe market doesn't digest this, we will simply have to prove [our model] works."
He said SAP would "confront" selected customers with the new subscription system for small-company software in the second and third quarters and raise the volume of users until the end of the year.
"At that point, we have to decide whether the system is volume ready," he said, voicing confidence the web-based service would be opened to general access by the start of next year at the latest.
The one-size-fits-all software that SAP will "host" for its clients on its computers marks a break and a gamble for the Walldorf-based company, which has thrived as a bespoke provider to big companies.
In this sector it holds about a quarter of the market, easily twice as much as Oracle. But its success means SAP has had to turn to small and medium-sized companies to keep growing strongly.
Mr Kagermann said investors were nervous as the new product was coupled with a new business model. While big groups buy SAP's software for their offices, small companies will rent A1S and use it online.
Installing databases meant the subscription model had big start-up costs. "People know this is the better model. But the upfront cost means few dare to introduce it," he said. "You only start printing money later."
Copyright The Financial Times Limited 2007
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
FTD.de - IT+Telekommunikation - Nachrichten - SAP startet Tests der Mittelstandssoftware
von Martin Ottomeier und Matthias Lambrecht (Hannover)
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
Bis dahin soll das Paket, das mit neuen Vertriebs- und Servicemodellen verbunden ist, von einzelnen Anwendern erprobt werden. "Hier auf der Cebit zeigen wir ausgewählten Kunden und Partnern das Produkt", sagte Kagermann.
Das neue Angebot ist ein wichtiger Baustein für SAPs künftiges Geschäft. Der weltgrößte Hersteller von Programmen zur Unternehmenssteuerung will in den kommenden Jahren im Mittelstand besonders stark wachsen. Um mehr Kunden in diesem Marktsegment gewinnen zu können, hat das Unternehmen Anfang des Jahres ein neues Produkt angekündigt. In die Mittelstandssoftware mit dem Codenamen A1S will SAP rund 300 bis 400 Mio. Euro investieren.
Mittelstand gilt als besonders attraktiv
Der Mittelstand gilt als besonders attraktiv für Firmensoftwarehersteller, weil hier die Nachfrage stark wächst. Von der neuen Software verspricht sich SAP ab 2010 rund 760 Mio. Euro zusätzlichen Jahresumsatz und 10.000 neue Kunden pro Jahr. Das Produkt soll als Software zur Miete im Internet angeboten werden - ein Geschäftsmodell, mit dem andere Anbieter in den vergangenen Jahren hohe Wachstumsraten erzielt haben. Die SAP-Software soll vor allem über Internet und Telefon verkauft werden. Sie ist auf Unternehmen zugeschnitten, die sich mit einer Standardlösung zufriedengeben und auf eine firmenspezifische Anpassung verzichten können.
"Das ist ein neues Geschäftsmodell, und das bringen sie nicht an einem Tag heraus", sagte Hans-Peter Klaey, bei SAP weltweit für das Mittelstandsgeschäft verantwortlich, der FTD. Im laufenden Jahr soll es mehrere Schritte geben, um das Produkt, aber auch Service und Marktzugangsstrategien zu prüfen.
Laut Kagermann wird das neue Angebot im zweiten und dritten Quartal ausgewählten Kunden vorgestellt. Im zweiten Halbjahr können erste Unternehmen mit dem Programm arbeiten. Dann soll das Geschäftsmodell auf den Masseneinsatz ausgerichtet werden. Weil SAP nicht nur die Software fertigstellen, sondern auch die nötige Infrastruktur und den Service aufbauen muss, ist der Zeitplan nicht in Stein gemeißelt. "All die Dinge sind Risikofaktoren, die natürlich zu anderen Einschätzungen führen können", sagte Kagermann.
Vertrauen der Anleger soll zurückgewonnen werden
Der SAP-Chef hofft, während der Phase der Einführung des neuen Produkts das Vertrauen der Investoren wiederzugewinnen. Das Unternehmen hatte zuletzt enttäuscht: Sowohl die Ankündigung der zusätzlichen Investitionen als auch eine unter den Erwartungen gebliebene Geschäftsentwicklung im vergangenen Jahr ließen den Aktienkurs fallen.
Kagermann schloss nicht aus, dass SAP weiteren Kundengruppen künftig Software zur Miete anbietet. "Wenn das funktioniert, will ich nicht ausschließen, dass wir mit dem Ansatz auch in andere Schichten hineingehen", sagte er. Allerdings ist er sich sicher, dass das neue standardisierte Produkt für den Mittelstand nicht von Großkunden eingesetzt werden wird. Der SAP-Chef sieht auch keine Gefahr für die bereits etablierten Produkte seines Konzerns. "Wir wollen nicht ein bestehendes Geschäft ablösen, sondern ein Zusatzgeschäft eröffnen", sagte Kagermann.
Der weltgrößte Hersteller von Unternehmenssoftware ist für sein Wachstum auf den Mittelstand angewiesen: Bis 2010 soll der Anteil, den diese Kunden zum konzernweiten Umsatz beisteuern, von heute 30 Prozent auf 40 bis 45 Prozent wachsen. Bis 2010 will der Anbieter den Kundenstamm von 38.000 auf 100.000 ausbauen. Als mittelständisch gelten Firmen mit bis zu 2500 Mitarbeitern.
von Martin Ottomeier und Matthias Lambrecht (Hannover)
Der deutsche Softwarekonzern SAP plant, seine mit Spannung erwartete neue Mittelstandssoftware bis zum Jahreswechsel zur Marktreife zu bringen. Dann falle die Entscheidung, ob das Produkt einer breiten Masse potenzieller Kunden angeboten werde, sagte Konzernchef Henning Kagermann der FTD.
Bis dahin soll das Paket, das mit neuen Vertriebs- und Servicemodellen verbunden ist, von einzelnen Anwendern erprobt werden. "Hier auf der Cebit zeigen wir ausgewählten Kunden und Partnern das Produkt", sagte Kagermann.
Das neue Angebot ist ein wichtiger Baustein für SAPs künftiges Geschäft. Der weltgrößte Hersteller von Programmen zur Unternehmenssteuerung will in den kommenden Jahren im Mittelstand besonders stark wachsen. Um mehr Kunden in diesem Marktsegment gewinnen zu können, hat das Unternehmen Anfang des Jahres ein neues Produkt angekündigt. In die Mittelstandssoftware mit dem Codenamen A1S will SAP rund 300 bis 400 Mio. Euro investieren.
Mittelstand gilt als besonders attraktiv
Der Mittelstand gilt als besonders attraktiv für Firmensoftwarehersteller, weil hier die Nachfrage stark wächst. Von der neuen Software verspricht sich SAP ab 2010 rund 760 Mio. Euro zusätzlichen Jahresumsatz und 10.000 neue Kunden pro Jahr. Das Produkt soll als Software zur Miete im Internet angeboten werden - ein Geschäftsmodell, mit dem andere Anbieter in den vergangenen Jahren hohe Wachstumsraten erzielt haben. Die SAP-Software soll vor allem über Internet und Telefon verkauft werden. Sie ist auf Unternehmen zugeschnitten, die sich mit einer Standardlösung zufriedengeben und auf eine firmenspezifische Anpassung verzichten können.
"Das ist ein neues Geschäftsmodell, und das bringen sie nicht an einem Tag heraus", sagte Hans-Peter Klaey, bei SAP weltweit für das Mittelstandsgeschäft verantwortlich, der FTD. Im laufenden Jahr soll es mehrere Schritte geben, um das Produkt, aber auch Service und Marktzugangsstrategien zu prüfen.
Laut Kagermann wird das neue Angebot im zweiten und dritten Quartal ausgewählten Kunden vorgestellt. Im zweiten Halbjahr können erste Unternehmen mit dem Programm arbeiten. Dann soll das Geschäftsmodell auf den Masseneinsatz ausgerichtet werden. Weil SAP nicht nur die Software fertigstellen, sondern auch die nötige Infrastruktur und den Service aufbauen muss, ist der Zeitplan nicht in Stein gemeißelt. "All die Dinge sind Risikofaktoren, die natürlich zu anderen Einschätzungen führen können", sagte Kagermann.
Vertrauen der Anleger soll zurückgewonnen werden
Der SAP-Chef hofft, während der Phase der Einführung des neuen Produkts das Vertrauen der Investoren wiederzugewinnen. Das Unternehmen hatte zuletzt enttäuscht: Sowohl die Ankündigung der zusätzlichen Investitionen als auch eine unter den Erwartungen gebliebene Geschäftsentwicklung im vergangenen Jahr ließen den Aktienkurs fallen.
Kagermann schloss nicht aus, dass SAP weiteren Kundengruppen künftig Software zur Miete anbietet. "Wenn das funktioniert, will ich nicht ausschließen, dass wir mit dem Ansatz auch in andere Schichten hineingehen", sagte er. Allerdings ist er sich sicher, dass das neue standardisierte Produkt für den Mittelstand nicht von Großkunden eingesetzt werden wird. Der SAP-Chef sieht auch keine Gefahr für die bereits etablierten Produkte seines Konzerns. "Wir wollen nicht ein bestehendes Geschäft ablösen, sondern ein Zusatzgeschäft eröffnen", sagte Kagermann.
Der weltgrößte Hersteller von Unternehmenssoftware ist für sein Wachstum auf den Mittelstand angewiesen: Bis 2010 soll der Anteil, den diese Kunden zum konzernweiten Umsatz beisteuern, von heute 30 Prozent auf 40 bis 45 Prozent wachsen. Bis 2010 will der Anbieter den Kundenstamm von 38.000 auf 100.000 ausbauen. Als mittelständisch gelten Firmen mit bis zu 2500 Mitarbeitern.
AMR Research -Servigistics Alchemy: Turning Post -Sales Service into Profits
AMR Research -Servigistics Alchemy: Turning Post -Sales Service into Profits
March 16, 2007
AMR Research -Servigistics Alchemy: Turning Post -Sales Service into Profits
Bruce Richardson, AMR Research - Alert Article
We were in Washington D.C. this week to attend Servigistics’ EXCHANGE user conference. Compared to the oversized gatherings hosted by SAP and Oracle, this was a more intimate networking event populated by more than 100 evangelists for the nascent “strategic service management” (SSM) market.
Mike Landry started the company in 1999 with the goal of providing decision support software to help customers manage service parts. His second customer was the legendary Ernie Boch, New England’s super car salesman. Mr. Boch bought the software for improving his share of the Subaru aftermarket parts business.
Through acquisitions, Servigistics has added software for workforce management and service parts pricing. Matching labor and parts is a natural pairing; why send a service rep if the part is not there?
Pricing is a very clever offering. In the past, many companies charged for parts on a cost-plus basis or a multiple of the part’s cost. Servigistics said that its pricing software can help customers increase revenue from service and parts by 5% to 15%. It achieves these results by monitoring competitive data, customer reaction to price changes, and part availability data.
The company also recently built a new command center application, which Dell currently has implemented. In my one-on-one meetings with customers, nearly all had made the pilgrimage to Texas to see Dell’s Enterprise Command Center. Imagine a large map of the United States with lights indicating the status of people and parts. Overlaid on the map can be data on local/regional weather and traffic.
As soon as a service request comes in, Dell begins the dispatch process. Every dispatch consists of a series of time stamps that track the technician and parts. If one misses a “gate,” a “red alert” is sent to the ECC to save the customer call. Recently, bad weather in Houston grounded a DHL flight. Dell was able to alert the affected customers and service partners that shipment was going to be delayed. The next step will be to adopt the FedEx approach and let customers track their own status.
Dell’s ECC is a great marketing tool, too. A tour is included as part of every customer briefing. All of the Servigistics customers I talked to developed a bad case of “ECC envy” after touring the facility.
What’s next... warranty management and/or simulation?
If customers have their way, the next additions to SSM will be warranty management software for helping determine customer entitlement at the time of the service request and additional, what-if simulation capabilities. Every customer also wants faster and cheaper integration with its ERP vendor(s). More than 60% use either SAP or Oracle.
The company has a very impressive customer base. Its 100 customers are brand names drawn primarily from high tech, automotive, aerospace, medical equipment, consumer products, third-party logistics firms, and other discrete manufacturers. With the current interest in direct store delivery (DSD), there may be a play in consumer packaged goods (CPG), though it’s hard to think of snack foods as service parts. The command center, though, would be very cool for virtually every industry.
Servigistics is one of the fastest-growing companies that we cover. In a briefing before the conference, the company said revenue had grown more than 65% year over year. Deal sizes have quadrupled. A deal in excess of $1M is now the norm.
While competitors will likely e-mail me to question the revenue or the deal size (this is a bitterly contested market), it would be hard for them to doubt the customer satisfaction. Every customer described them as a partner, not a vendor. The challenge will be to retain that sense of partnership while managing high growth.
Opportunity: replacing millions of Excel spreadsheets
If you add the revenue from all of the SSM/service parts planning vendors, it would come in somewhere between $100M and $200M. The potential market is enormous. Ask a company what it was using before Servigistics, and there is a 90% chance that it will answer “spreadsheets.”
Our research shows that post-sale service represents 24% of revenue. More importantly, it contributes 40% to 80% of profit. Packaged software can cut your cost-to-serve by 10% to 15% by cutting parts inventory and logistics costs, increase first time fix to 95%, and lower inventory by 10%. For the first time, you can optimize all of your service assets, people, parts, and fleets, while sharply improving customer loyalty and employee morale. Don’t take my word for it—ask a customer.
Next week: Miami
Next week’s travel takes us to an Accenture event in Miami. Look for our analysis next week. My goal is to sneak in a round of golf on the Blue Monster before the PGA event starts later that week. When I get back, I will also be meeting with Don Klaiss, the new president and CEO at Compiere, the open source ERP vendor. Many of you may know Mr. Klaiss from his 15 years at Oracle.
In the meantime, I welcome your comments and ideas—brichardson@amrresearch.com.
--------------------------------------------------------------------------------
© Copyright by AMR Research, Inc.
AMR Research® is a registered trademark of AMR Research, Inc.
Copyright © 2007 AMR Research, Inc. All rights reserved.
March 16, 2007
AMR Research -Servigistics Alchemy: Turning Post -Sales Service into Profits
Bruce Richardson, AMR Research - Alert Article
We were in Washington D.C. this week to attend Servigistics’ EXCHANGE user conference. Compared to the oversized gatherings hosted by SAP and Oracle, this was a more intimate networking event populated by more than 100 evangelists for the nascent “strategic service management” (SSM) market.
Mike Landry started the company in 1999 with the goal of providing decision support software to help customers manage service parts. His second customer was the legendary Ernie Boch, New England’s super car salesman. Mr. Boch bought the software for improving his share of the Subaru aftermarket parts business.
Through acquisitions, Servigistics has added software for workforce management and service parts pricing. Matching labor and parts is a natural pairing; why send a service rep if the part is not there?
Pricing is a very clever offering. In the past, many companies charged for parts on a cost-plus basis or a multiple of the part’s cost. Servigistics said that its pricing software can help customers increase revenue from service and parts by 5% to 15%. It achieves these results by monitoring competitive data, customer reaction to price changes, and part availability data.
The company also recently built a new command center application, which Dell currently has implemented. In my one-on-one meetings with customers, nearly all had made the pilgrimage to Texas to see Dell’s Enterprise Command Center. Imagine a large map of the United States with lights indicating the status of people and parts. Overlaid on the map can be data on local/regional weather and traffic.
As soon as a service request comes in, Dell begins the dispatch process. Every dispatch consists of a series of time stamps that track the technician and parts. If one misses a “gate,” a “red alert” is sent to the ECC to save the customer call. Recently, bad weather in Houston grounded a DHL flight. Dell was able to alert the affected customers and service partners that shipment was going to be delayed. The next step will be to adopt the FedEx approach and let customers track their own status.
Dell’s ECC is a great marketing tool, too. A tour is included as part of every customer briefing. All of the Servigistics customers I talked to developed a bad case of “ECC envy” after touring the facility.
What’s next... warranty management and/or simulation?
If customers have their way, the next additions to SSM will be warranty management software for helping determine customer entitlement at the time of the service request and additional, what-if simulation capabilities. Every customer also wants faster and cheaper integration with its ERP vendor(s). More than 60% use either SAP or Oracle.
The company has a very impressive customer base. Its 100 customers are brand names drawn primarily from high tech, automotive, aerospace, medical equipment, consumer products, third-party logistics firms, and other discrete manufacturers. With the current interest in direct store delivery (DSD), there may be a play in consumer packaged goods (CPG), though it’s hard to think of snack foods as service parts. The command center, though, would be very cool for virtually every industry.
Servigistics is one of the fastest-growing companies that we cover. In a briefing before the conference, the company said revenue had grown more than 65% year over year. Deal sizes have quadrupled. A deal in excess of $1M is now the norm.
While competitors will likely e-mail me to question the revenue or the deal size (this is a bitterly contested market), it would be hard for them to doubt the customer satisfaction. Every customer described them as a partner, not a vendor. The challenge will be to retain that sense of partnership while managing high growth.
Opportunity: replacing millions of Excel spreadsheets
If you add the revenue from all of the SSM/service parts planning vendors, it would come in somewhere between $100M and $200M. The potential market is enormous. Ask a company what it was using before Servigistics, and there is a 90% chance that it will answer “spreadsheets.”
Our research shows that post-sale service represents 24% of revenue. More importantly, it contributes 40% to 80% of profit. Packaged software can cut your cost-to-serve by 10% to 15% by cutting parts inventory and logistics costs, increase first time fix to 95%, and lower inventory by 10%. For the first time, you can optimize all of your service assets, people, parts, and fleets, while sharply improving customer loyalty and employee morale. Don’t take my word for it—ask a customer.
Next week: Miami
Next week’s travel takes us to an Accenture event in Miami. Look for our analysis next week. My goal is to sneak in a round of golf on the Blue Monster before the PGA event starts later that week. When I get back, I will also be meeting with Don Klaiss, the new president and CEO at Compiere, the open source ERP vendor. Many of you may know Mr. Klaiss from his 15 years at Oracle.
In the meantime, I welcome your comments and ideas—brichardson@amrresearch.com.
--------------------------------------------------------------------------------
© Copyright by AMR Research, Inc.
AMR Research® is a registered trademark of AMR Research, Inc.
Copyright © 2007 AMR Research, Inc. All rights reserved.
destinationCRM.com: Microsoft Goes Vertical
destinationCRM.com: Microsoft Goes Vertical
At day two of Convergence Microsoft deepens Dynamics' vertical investments by announcing an acquisition and a new ISV certification program to deliver industry-relevant software to customers.
At day two of Convergence Microsoft deepens Dynamics' vertical investments by announcing an acquisition and a new ISV certification program to deliver industry-relevant software to customers.
Thursday, March 15, 2007
Ufida Hopes to Extend Market Reach Through IBM Partnership
Ufida Hopes to Extend Market Reach Through IBM Partnership
China's largest software company, Ufida, seeks to expand the market for its enterprise resource planning products by partnering with IBM. Chinese service providers can use partnerships to gain market share outside of China.
Ufida, a leading services provider within China, plans to expand its business to other markets, including Hong Kong, Japan, Singapore and Southeast Asia. It will leverage IBM’s brand, technology and customer base to sell high-end Ufida products, including its NC products and services, targeting large manufacturing companies with headquarters or a significant presence in the Asia/Pacific region. The partnership with IBM is also likely to strengthen Ufida’s leading position in the Chinese market.
China's largest software company, Ufida, seeks to expand the market for its enterprise resource planning products by partnering with IBM. Chinese service providers can use partnerships to gain market share outside of China.
Ufida, a leading services provider within China, plans to expand its business to other markets, including Hong Kong, Japan, Singapore and Southeast Asia. It will leverage IBM’s brand, technology and customer base to sell high-end Ufida products, including its NC products and services, targeting large manufacturing companies with headquarters or a significant presence in the Asia/Pacific region. The partnership with IBM is also likely to strengthen Ufida’s leading position in the Chinese market.
Wednesday, March 14, 2007
FT.com / Technology - Product lifecycle management: Benefits of being streamlined
FT.com / Technology - Product lifecycle management: Benefits of being streamlined
Product lifecycle management: Benefits of being streamlined
Geoff Nairn
Published: March 14 2007 09:36 | Last updated: March 14 2007 09:36
Product lifecycle management goes way beyond design. Downstream functions such as production and marketing are important, while regulations on recycling and traceability are forcing manufacturers to take an interest in their products after they have been sold.
“PLM is morphing to be much more than just building better tools for engineers,” says Walter Donaldson, general manager of IBM’s PLM business.
The software includes not just computer-aided design but also tools to improve downstream functions, often characterised by disjointed processes and archaic systems.
“A lot of investment in PLM is now based on this downstream impact,” says Mike Burkett, research director at AMR Research, who is credited with popularising the term PLM.
He gives the example of Motorola, which engineers its products to use fewer parts and fewer vendors. “That makes a strategic difference,” he says
In similar fashion, Toyota says it has saved $1,000 on the cost of making each vehicle by standardising commodity components.
PLM makes these types of cost-saving initiative easier, as one of its key functions is to bring together all information on parts and products, which are traditionally spread over many systems.
The strategic difference PLM can make is shown in the aerospace sector.
Analysts say that Boeing’s success in winning orders owes much to its use of “digital tooling” to build its latest aircraft, the 787 Dreamliner.
The Dreamliner project is the first time Boeing has used PLM technology on such a scale, from inception to production and product support.
Its PLM software, from French vendor Dassault Systèmes, cut the time needed to develop the 787 from five years – the time it took to develop its predecessor, the 777 – to four.
In December, workers at Boeing’s factory in Washington state were shown, via a giant screen, a simulation of how the Dreamliner’s myriad parts will come together. The aircraft’s first flight is due this year.
Boeing’s success contrasts with that of its rival Airbus, whose new aircraft, the A380 has hit delays, forcing the European manufacturer to scale back the project.
Airbus also makes heavy use of Dassault’s PLM software but, crucially, different Airbus facilities have been running different versions of it. The resulting incompatibilities meant wiring harnesses designed in one Airbus factory did not fit in the fuselage that was being built in another.
This is the downside of digital manufacturing: one of the benefits is that no prototype is needed, but had Airbus built a physical prototype, the problem might have been spotted sooner and the solution would have been much cheaper and quicker.
“PLM offers a new way of working because you can eliminate prototypes, which are one of the biggest costs at the engineering stage,” says Heinz Mayer, chief engineer for information management at Magna Steyr, an Austrian car maker.
Magna Steyr is best known as the manufacturer of the BMW X3 but it also makes vehicles for other carmakers, including the new Fiat Bravo, which is being built without prototypes.
Magna Steyr has grown rapidly to become the largest carmaker in the world without a brand. Brand-name manufacturers turn to Magna Steyr to turn out low-volume vehicles that would take too long to develop themselves.
The engine and badge are supplied by the brand-name manufacturer, but everything else in cars such as the Saab 93 Cabrio or the BMW X3 has been developed and manufactured by Magna Stehr.
Mr Mayer says its PLM software, supplied by US vendor Agile Software, plays an important role in reducing the time and cost of developing cars, particularly when it comes to the inevitable design changes.
“By linking our PLM system to our production planning and manufacturing systems, we can immediately offer design options to our manufacturing planners,” he says.
This trend to outsource not just manufacturing but also product development is gathering force in many industries.
About 90 per cent of the work on the Boeing 787 has been outsourced and its partners collaborate using the PLM software from Dassault. Airbus is now planning to outsource more work to its “risk-sharing partners”.
Compared with building a new aircraft, the challenges involved in bringing a new toothpaste to market can seem trivial. Yet PLM is also emerging as a powerful tool for the consumer products industry.
In the US, 35,000 consumer products are introduced each year, yet more than 80 per cent of them fail to meet the financial objectives set by the manufacturer, says Daniel Staresinic, who heads the consumer products practice of UGS, a US-based PLM company.
He argues that the use of PLM can reduce the time needed to get a product to market, and so there is a greater chance that the product will live up to expectations.
One trend in the consumer products sector is customising items to the requirements of specific retailers, typically with special packaging or promotions – a toothbrush bundled with the toothpaste, for example.
The design element in these customised products is trivial, but nevertheless can create big headaches for manufacturers who have to decide not just if they can make the customised product but whether they can deliver it on time.
Mr Staresinic says the use of PLM for this application can reduce the decision time by 50 per cent and the “execution time” by 30 per cent or more.
Copyright The Financial Times Limited 2007
Product lifecycle management: Benefits of being streamlined
Geoff Nairn
Published: March 14 2007 09:36 | Last updated: March 14 2007 09:36
Product lifecycle management goes way beyond design. Downstream functions such as production and marketing are important, while regulations on recycling and traceability are forcing manufacturers to take an interest in their products after they have been sold.
“PLM is morphing to be much more than just building better tools for engineers,” says Walter Donaldson, general manager of IBM’s PLM business.
The software includes not just computer-aided design but also tools to improve downstream functions, often characterised by disjointed processes and archaic systems.
“A lot of investment in PLM is now based on this downstream impact,” says Mike Burkett, research director at AMR Research, who is credited with popularising the term PLM.
He gives the example of Motorola, which engineers its products to use fewer parts and fewer vendors. “That makes a strategic difference,” he says
In similar fashion, Toyota says it has saved $1,000 on the cost of making each vehicle by standardising commodity components.
PLM makes these types of cost-saving initiative easier, as one of its key functions is to bring together all information on parts and products, which are traditionally spread over many systems.
The strategic difference PLM can make is shown in the aerospace sector.
Analysts say that Boeing’s success in winning orders owes much to its use of “digital tooling” to build its latest aircraft, the 787 Dreamliner.
The Dreamliner project is the first time Boeing has used PLM technology on such a scale, from inception to production and product support.
Its PLM software, from French vendor Dassault Systèmes, cut the time needed to develop the 787 from five years – the time it took to develop its predecessor, the 777 – to four.
In December, workers at Boeing’s factory in Washington state were shown, via a giant screen, a simulation of how the Dreamliner’s myriad parts will come together. The aircraft’s first flight is due this year.
Boeing’s success contrasts with that of its rival Airbus, whose new aircraft, the A380 has hit delays, forcing the European manufacturer to scale back the project.
Airbus also makes heavy use of Dassault’s PLM software but, crucially, different Airbus facilities have been running different versions of it. The resulting incompatibilities meant wiring harnesses designed in one Airbus factory did not fit in the fuselage that was being built in another.
This is the downside of digital manufacturing: one of the benefits is that no prototype is needed, but had Airbus built a physical prototype, the problem might have been spotted sooner and the solution would have been much cheaper and quicker.
“PLM offers a new way of working because you can eliminate prototypes, which are one of the biggest costs at the engineering stage,” says Heinz Mayer, chief engineer for information management at Magna Steyr, an Austrian car maker.
Magna Steyr is best known as the manufacturer of the BMW X3 but it also makes vehicles for other carmakers, including the new Fiat Bravo, which is being built without prototypes.
Magna Steyr has grown rapidly to become the largest carmaker in the world without a brand. Brand-name manufacturers turn to Magna Steyr to turn out low-volume vehicles that would take too long to develop themselves.
The engine and badge are supplied by the brand-name manufacturer, but everything else in cars such as the Saab 93 Cabrio or the BMW X3 has been developed and manufactured by Magna Stehr.
Mr Mayer says its PLM software, supplied by US vendor Agile Software, plays an important role in reducing the time and cost of developing cars, particularly when it comes to the inevitable design changes.
“By linking our PLM system to our production planning and manufacturing systems, we can immediately offer design options to our manufacturing planners,” he says.
This trend to outsource not just manufacturing but also product development is gathering force in many industries.
About 90 per cent of the work on the Boeing 787 has been outsourced and its partners collaborate using the PLM software from Dassault. Airbus is now planning to outsource more work to its “risk-sharing partners”.
Compared with building a new aircraft, the challenges involved in bringing a new toothpaste to market can seem trivial. Yet PLM is also emerging as a powerful tool for the consumer products industry.
In the US, 35,000 consumer products are introduced each year, yet more than 80 per cent of them fail to meet the financial objectives set by the manufacturer, says Daniel Staresinic, who heads the consumer products practice of UGS, a US-based PLM company.
He argues that the use of PLM can reduce the time needed to get a product to market, and so there is a greater chance that the product will live up to expectations.
One trend in the consumer products sector is customising items to the requirements of specific retailers, typically with special packaging or promotions – a toothbrush bundled with the toothpaste, for example.
The design element in these customised products is trivial, but nevertheless can create big headaches for manufacturers who have to decide not just if they can make the customised product but whether they can deliver it on time.
Mr Staresinic says the use of PLM for this application can reduce the decision time by 50 per cent and the “execution time” by 30 per cent or more.
Copyright The Financial Times Limited 2007
Friday, March 09, 2007
Will the Real SAP WM Please Stand Up? | AMR Research
Will the Real SAP WM Please Stand Up? | AMR Research
The most recent release of SAP’s supply chain management (SCM) module has many logistics and distribution managers confused. Few SAP customers understand what SAP’s warehouse management system (WM) options are and what the future development strategy is.
The most recent release of SAP’s supply chain management (SCM) module has many logistics and distribution managers confused. Few SAP customers understand what SAP’s warehouse management system (WM) options are and what the future development strategy is.
Monday, March 05, 2007
Hyperion Buy Will Add to Oracle BI and CPM Portfolio
Hyperion Buy Will Add to Oracle BI and CPM Portfolio
Hyperion Buy Will Add to Oracle BI and CPM Portfolio
5 March 2007
Bill Hostmann John E. Van Decker Nigel Rayner
Oracle's pact to buy Hyperion, a vendor of business intelligence and corporate performance management software, won't lead to major short-term product changes. But customers should ask for a road map once the deal closes.
Hyperion Buy Will Add to Oracle BI and CPM Portfolio
5 March 2007
Bill Hostmann John E. Van Decker Nigel Rayner
Oracle's pact to buy Hyperion, a vendor of business intelligence and corporate performance management software, won't lead to major short-term product changes. But customers should ask for a road map once the deal closes.
Friday, March 02, 2007
Oracle-Hyperion: 24 hours later (AMR)
It took 17 months, but we were right: consolidation has come to the business intelligence/performance management market. On September 29, 2005, John Hagerty and I collaborated on, “Handicapping the Next Big Deals,” that predicted the consolidation in the business intelligence/performance management space. In fact, one line looks prescient: “Don’t rule out Oracle-Hyperion.”
Within hours after Oracle announced it was buying Hyperion for $3.3B, John’s analysis was on our website (it’s included in this issue of First Thing Monday). Rather than repeating his work, let’s focus on three questions that warrant more analysis: Why Hyperion? Who’s next? What will SAP do?
Within hours after Oracle announced it was buying Hyperion for $3.3B, John’s analysis was on our website (it’s included in this issue of First Thing Monday). Rather than repeating his work, let’s focus on three questions that warrant more analysis: Why Hyperion? Who’s next? What will SAP do?
Thursday, March 01, 2007
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