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Jan. 5, 2015, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
Nov. 19, 2014, 7:05 AM
- Coming on the heels of SAP's (NYSE:SAP) $7.3B Concur acquisition in September, Chief Executive Bill McDermott has ruled out any big acquisitions the next few years.
- "Faced with a choice of stepping up or stepping it down, we are going to step it down," says McDermott. "If we do something it will be tuck in. It will probably put you to sleep."
- SAP will close the Concur deal in the next three weeks.
- Previously: SAP acquiring Concur for $8.3B
Nov. 14, 2014, 2:43 AM
- SAP (NYSE:SAP) has agreed to pay Oracle (NYSE:ORCL) $359M to settle a long-running legal battle over software copyrights.
- Oracle filed suit in 2007 alleging that TomorrowNow, a company that SAP had acquired, illegally downloaded Oracle’s software.
- SAP admitted liability, but the lawsuit dragged on for years over the amount of damages the company should pay.
Nov. 11, 2014, 5:42 PM
- Under an OEM agreement between the companies, SAP will "bundle base maps and content" from Nokia's (NYSE:NOK) Here mapping/navigation platform with its Hana in-memory database (often used for analytics/transaction-processing). SAP's customers will be "able to access this geo-content to develop and deploy geo-spatial applications."
- The companies declare pairing Here with Hana will allow companies to "geo-reference data points and visualize them on a map to obtain new insights, identify trends and explain root causes," as well as "track and manage the flow of goods, information or money to help plan and prioritize future efforts accordingly."
- Nokia has already shown an interest in creating analytics use cases for Here. Back in June, the company bought Medio Systems. creator of an analytics platform that tracks a user's mobile activity, and said it would use Medio's tech to "create contextual maps and location services that change according to the situation."
- SAP, for its part, has put much effort into creating a software/services ecosystem for Hana, which has become a key growth driver as the company contends with weak on-premise software license growth.
Oct. 20, 2014, 4:29 AM
- SAP (NYSE:SAP) cut its outlook for full-year operating profit as customers moved to cloud-based software rather than packaged software, delaying recognition of those sales.
- The company now expects 2014 operating profit, excluding some special items of €5.6B-5.8B ($7.1B-7.4B), down from 5.8B-6B previously.
- Despite cutting its outlook, SAP reported €880M in net profit for the period ended Sept. 30 vs. €762M for the same period a year ago. Total revenue rose 5% to €4.3B from €4.1B a year earlier.
- SAP -4.8% premarket
Oct. 19, 2014, 5:30 PM
Oct. 14, 2014, 2:31 PM
- IBM's (IBM +0.5%) SoftLayer unit has been added to the list of cloud infrastructure (IaaS) providers supporting SAP's (SAP +0.7%) Hana Enterprise Cloud platform, which delivers SAP cloud apps (including the core SAP Business Suite) running on top of the company's Hana in-memory database.
- SAP already offers Hana Enterprise Cloud through its own data centers. The company also supports Hana use by 3rd-party cloud app developers, both through its own Hana Cloud platform and Amazon Web Services.
- An SAP exec talks up the geographic reach of IBM's data centers, and its ability to address security concerns. "A lot of our customers are concerned about data sovereignty and privacy controls. IBM was the obvious choice to help us address that."
- In January, IBM announced plans to build 15 new data centers to expand its cloud reach. Amazon and Microsoft have also been growing their global data center footprints.
- Separately, SAP has struck an OEM and managed cloud services deal with Unisys (UIS +1.1%). Unisys will offer Hana-based "bundled data analytics solutions" running on its Forward high-end server platform, as well as Hana-based analytics services "hosted in a Unisys- or partner-managed data center through a pay-for-use subscription." The services are initially aimed at U.S. federal clients.
Sep. 19, 2014, 11:23 AM
- SAP (SAP -3.9%) investors have a case of sticker shock after the company agreed to pay $8.3B (to be financed through a credit facility) to buy cloud travel/expense management software leader Concur Technologies. The acquisition price is equal to 9.6x Concur's estimated FY15 (ends Sep. '15) sales.
- On the other hand, enterprise cloud software names are rallying on hopes of fresh deal activity. CRM +1.5%. N +2.7%. NOW +2.6%. PAYC +5%. ULTI +2.2%. JIVE +1.8%. DWRE +1.8%. MKTO +1.7%.
- SAP CEO Bill McDermott proclaims combining Concur's products with Ariba's cloud procurement/B2B marketplace offerings and Fieldglass' cloud labor-management software will help his company redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment."
- McDermott also praises Concur's corporate travel ecosystem, which includes Hertz, Delta, Expedia, Sabre, and many others, and sees an opportunity to create real-time travel collaboration tools running on SAP's Hana in-memory database. SAP notes only 30% of Concur customers are currently SAP clients, yielding plenty of cross-selling opportunities.
Sep. 18, 2014, 5:24 PM
- SAP is paying $129/share, or an enterprise value of $8.3B, to acquire top cloud travel/expense management software vendor Concur Technologies (NASDAQ:CNQR). The price represents a 20% premium to Concur's Thursday close.
- The deal is expected to close in Q4 2014 or Q1 2015, and will be financed using a €7B credit facility. SAP notes Concur claims 23K+ customers and 25M+ active users.
- The purchase is the latest in a string of major cloud software acquisitions by SAP, which is counting on cloud growth to offset slumping traditional license sales. Other major cloud-related purchases include SuccessFactors, Ariba, and hybris.
- Previous: Concur reportedly approached SAP, Oracle about acquisition
Sep. 3, 2014, 1:19 PM
- BNP's Brice Prunas has downgraded SAP (SAP -1.1%) to Underperform, and cut his target by €6 to €58. He cites the price pressure and lower customer lock-in resulting from the enterprise software industry's transition to cloud subscriptions from up-front licenses.
- The downgrade comes a day after Bloomberg reported leading cloud travel/expense management software vendor Concur had approached SAP about an acquisition, albeit while giving no details about SAP's reaction.
Sep. 2, 2014, 5:28 PM
- Concur (NASDAQ:CNQR) approached SAP and Oracle (NYSE:ORCL) to "gauge their interest" in an acquisition, sources tell Bloomberg. Oracle, set to buy point-of-sale hardware vendor Micros for $5.3B, is said to have passed.
- No details are given on SAP's reaction. Back in January, the German software giant suggested it could make another big cloud software acquisition - it already has a few under its belt. But in April, SAP, which is counting on cloud growth to offset slumping traditional license sales, stated it considers itself under no pressure to make a deal.
- Concur has pared its AH gains: The cloud travel/expense software provider is now up 11%. Its market cap stands at $6.4B.
- Earlier: Concur reportedly exploring sale
Aug. 19, 2014, 1:46 PM
- Much like IBM, SAP (SAP +0.8%) is making a series of moves to grow its African sales, which are already increasing at a double-digit clip.
- Among other things, the software giant plans to hire up to 250 new employees on the continent through 2015 (it currently has ~700 African workers), open offices in Angola and Morocco, and expand its partner ecosystem in the region.
- SAP notes much of its direct investment will be in regional giant South Africa, where it already has a big presence. The company currently has 1.3K+ African clients.
Jul. 17, 2014, 10:20 AM
- Though SAP (SAP +2%) missed Q2 revenue estimates (while beating on EPS), it's reiterating its forecast for 6%-8% constant currency software and software-related service revenue growth. Cloud subscription/support revenue is now expected to make up €1B-€1.05B of that total, up from €950M-€1B.
- 2014 constant op. profit guidance of €5.8B-€6B is being reiterated. If currency rates remain at June levels, forex is expected to have a 2% 2014 impact on revenue and op. profit growth.
- Cloud subscription/support revenue rose 32% Y/Y (to €242M) in Q2, even with Q1's clip. Traditional software license revenue (hurt by cloud competition) fell 2% (to €957M), an improvement from Q1's 5% decline. Support revenue (based on past deals, fairly stable) rose 4% (to €2.28B) vs. 5% in Q1.
- Cost controls helped drive the EPS beat: Opex only rose fractionally Y/Y to €2.92B, even as headcount rose 4% to 67,651.
- SAP's annual cloud revenue run rate rose to ~€1.2B from ~€1.1B at the end of Q1. ~1.2K customers are now running its core Business Suite on top of the Hana in-memory database (up from ~1K), and there are ~3.6K Hana customers altogether (up from ~3.2K). Deferred cloud subscription/support revenue rose 29% Y/Y to €448M.
- Q1 results, PR
Jul. 17, 2014, 6:16 AM
- SAP (NYSE:SAP): Q2 EPS of €0.79 beats by €0.04.
- Revenue of €4.15B (+1.5% Y/Y) misses by €70M.
Jul. 16, 2014, 5:30 PM
Jul. 3, 2014, 4:35 PM
- Political turmoil in Russia may have affected SAP's (SAP +1%) Q2 sales to the country, writes JPMorgan, while cutting its PT for the business software giant by €2 to €60 ($81.60).
- JPMorgan is also concerned about weakness in other emerging markets, and believes SAP's U.S. license revenue is still under pressure. U.S. revenue (inc. both software and services) rose 4% Y/Y to €1.065B, but its sales to the rest of the Americas fell 7% to €356M. Likewise, Asia-Pac sales (emerging markets-dependent) fell 8% to €511M.
- The note comes ahead of SAP's July 17 Q2 report. Shares sold off in April following a Q1 miss driven by a 5% Y/Y drop in traditional license revenue to €623M (overshadowed a 32% increase in cloud revenue to €221M).
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