• Jul. 17, 2013, 5:30 PM


    | Jul. 17, 2013, 5:30 PM
  • Jul. 5, 2013, 9:28 AM
    SAP -1% in spite of higher equity futures, thanks to a downgrade to Hold from Deutsche. Following a strong 2012 (aided by optimism about Hana), shares have underperformed this year amidst worries about slowing software license growth due to macro issues and cloud competition. Oracle and Accenture's recent numbers haven't helped matters.
    | Jul. 5, 2013, 9:28 AM
  • Jun. 28, 2013, 2:24 PM

    In addition to IBM, several other enterprise IT names are pressured by Accenture's (ACN -10.3%) May quarter revenue miss (caused by consulting weakness), light guidance, and commentary about soft European demand. SAP (SAP -3.6%), Autodesk (ADSK -2.3%), Qlik (QLIK -2.1%), and Informatica (INFA -1.8%), all of whom have strong European exposure, are among the casualties. Other decliners include VMware (VMW -1.5%), Salesforce (CRM -1.9%), Teradata (TDC -1.8%), and CommVault (CVLT -3.9%). In his downgrade note on Accenture, Raymond James' Brian Gesuale mentioned "ERP [software consulting] work is showing signs of commoditization and short-term projects remain on the shelf." That might not be going over well with SAP investors.

    | Jun. 28, 2013, 2:24 PM | 2 Comments
  • Jun. 26, 2013, 11:26 AM

    Workday (WDAY +3.9%) rallies after William Blair starts coverage with an Outperform. The launch comes a day after partner Salesforce announced a partnership with rival Oracle, and Pac Crest struck an upbeat tone about Workday's new cloud recruiting product. The firm says checks indicate recruiting rivals Taleo and SuccessFactors are "far less competitive" following their respective acquisitions by Oracle (ORCL) and SAP, thanks in part major personnel defections (this is an issue bigger software firms often face when acquiring startups), and that Workday's "unique use of object-oriented technology and its proprietary in-memory data model" aid its efforts to enter the HR/finance analytics space.

    | Jun. 26, 2013, 11:26 AM
  • Jun. 21, 2013, 11:40 AM

    As was the case in March, cloud competition is in focus as Oracle (ORCL -8.6%) dives following a revenue/EPS miss marked by soft new license/cloud subscription growth. "Seasonally, the fourth quarter is their biggest ... software quarter and we have a miss here on software," observes Edward Jones' Josh Olson. Goldman's Heather Bellini is defending Oracle, arguing the shortfall is "likely more macro driven than company-specific." Rivals SAP (SAP -3.3%), VMware (VMW -3.2%), and Citrix (CTXS -2.1%) are underperforming. Larry Ellison mentioned on the earnings call Oracle plans to launch an in-memory version of its 12c database to take on SAP's Hana; Oracle has thus far taken a hardware-centric approach to competing with Hana.

    | Jun. 21, 2013, 11:40 AM
  • Jun. 20, 2013, 5:37 PM

    Oracle (ORCL) guides on its FQ4 call for FQ1 revenue growth of 2%-5% and constant currency EPS of $0.56-$0.59; that compares with a consensus of 4.5% rev. growth and non-constant-currency EPS of $0.58. Software license/cloud subscription rev. growth is forecast at -1% to +7%, and hardware product growth at -6% to +2%; the latter is much better than FQ4's -13%, but aided by easier comps. Engineered systems now make up over 1/3 of hardware sales. Mark Hurd names dozens of major cloud customer wins, and claims Oracle's cloud HR business is bigger than Workday's (WDAY). But what does that say about traditional software sales, in light of the total license numbers? ORCL -8% AH. SAP -1%.

    | Jun. 20, 2013, 5:37 PM
  • Jun. 6, 2013, 6:40 PM
    "If SAP's Hana is a success, we estimate its [database] market share rising to between 15-20% from its current low single digits. This inevitably will [impact] Oracle’s market share, but more importantly we believe it could affect the margin structure of the industry," says Berenberg's Daud Khan, explaining his 2-notch downgrade of Oracle (ORCL -2.3%) to Sell. Khan notes some Hana users are still paying maintenance fees to Oracle due to contracts, which won't last forever. The downgrade comes shortly after SAP stated it now has 1,500+ Hana customers, up from 1,300+ at the end of Q1. SAP is targeting €650M-€700M in 2013 Hana revenue - that's up from 2012's €392M, but well below Oracle's database revenue.
    | Jun. 6, 2013, 6:40 PM | 5 Comments
  • Jun. 5, 2013, 6:14 PM

    "Educated guesses" put the price tag for SAP's purchase of hybris around $1.2B-$1.5B, says AllThingsD's Arik Hesseldahl. BMO believes the deal makes SAP a top-3 e-commerce software vendor, along with Oracle and IBM, and others see similarities between SAP's plans to create an end-to-end CRM software platform for analyzing retailer data and engaging with customers across channels, and Salesforce's (CRM) attempts to create an end-to-end cloud marketing platform with the help of ExactTarget. Discussing the deal, co-CEO Bill McDermott stated SAP wants to provide "everything a CEO needs to run a corporation in full intimacy with their consumer" in real-time.

    | Jun. 5, 2013, 6:14 PM
  • Jun. 5, 2013, 10:05 AM
    SAP expands its cloud software arsenal by acquiring hybris, a top provider of e-commerce infrastructure software, for an undisclosed sum. The deal comes 8 months after SAP bought top B2B marketplace provider Ariba. SAP argues hybris' software, which covers Web, mobile, and in-store channels, will improve "customer insight and engagement" when paired with its Hana in-memory database and Jam social networking software. The deal could spell tougher competition for hybris rivals Demandware (DWRE -0.5%) and NetSuite (N -0.4%). SAP could also end up competing with IBM, which has been making acquisitions to bolster its Smarter Commerce initiative.
    | Jun. 5, 2013, 10:05 AM | 1 Comment
  • Jun. 3, 2013, 1:39 PM

    Microsoft (MSFT +0.7%) kicks off its TechEd conference by showing off updates to Windows Server 2012 and its Systems Center 2012 management software, as well as the next version of its SQL Server database. The first two products will launch this year; the third might not arrive until 2014. As with its Azure cloud platform, Microsoft is touting the ability of its new offerings to support hybrid cloud deployments. SQL Server is also adding support for in-memory databases (previous) to take on SAP's Hana. Meanwhile, Azure has been updated to support per-minute billing (Amazon charges by the hour), and Microsoft boasts in a memo it's adding 1K+ Azure customers per day.

    | Jun. 3, 2013, 1:39 PM
  • May 24, 2013, 2:10 PM

    Jive Software (JIVE +4.6%) spikes midday after reports surface that SAP considered buying the company over the past several weeks but ultimately decided against the move due to product overlap. (Bloomberg)

    | May 24, 2013, 2:10 PM
  • May 21, 2013, 7:07 PM

    VMware (VMW, EMC) officially launches its vCloud Hybrid Service, which allows clients to pair on-premise workloads with a VMware-run public cloud infrastructure. VMware claims the service supports more than 90 OS', has high-availability options, and allows public and on-premise workloads to be jointly managed. VMware also says it will offer SAP software, including Hana, "as a subscription service on premise and in the cloud." vCloud Hybrid competes with Amazon Web Services, Microsoft's Azure (perhaps the most direct rival), and Rackspace's OpenStack offerings. ITWorld calls it "ideal for a significant set of enterprise applications," but adds it's "no Amazon killer," given AWS' focus on low cost and ease-of-use.

    | May 21, 2013, 7:07 PM | 3 Comments
  • May 16, 2013, 2:01 PM

    More on SAP: During a Sapphire Now talk, chairman Hasso Plattner makes clear that Hana is central to SAP's product strategy, rather than just a part of it. "It's not about Hana anymore. It's about the applications on Hana." To drive home his point, Plattner brags over 60% of Hana deployments involve non-SAP apps, and that the database is supported by software from 431 startups. The comments come shortly after SAP made good on expectations it would begin offering Hana through a managed cloud service that can be used to migrate on-premise SAP workloads. (more on Hana)

    | May 16, 2013, 2:01 PM
  • May 16, 2013, 1:28 PM

    SAP (SAP -1.3%) makes a flurry of announcements during its Sapphire Now conference. 1) H-P (HPQ) is offering new AppSystems (prepackaged hardware/software) for SAP apps running on its Hana in-memory database. H-P and SAP are also working on Project Kraken, a server able to run Hana with 3x more memory than normal. 2) Hana has been updated to better support the Hadoop big data framework and other diverse data sources, and to include geospatial data. 3) SAP is launching Fiori, a group of "simple, easy-to-use" apps handling basic SAP software functions. 4) SAP's cloud apps, including SuccessFactors and Ariba's, have been updated.

    | May 16, 2013, 1:28 PM
  • May 13, 2013, 11:46 AM

    H-P (HPQ -1.2%) offered to sell its Autonomy unit to SAP at some point before last month, but the German software giant wasn't interested, co-CEO Bill McDermott tells The Times. Odds are the offer price was well below the $11.1B H-P paid in 2011 for the enterprise search/analytics software vendor, the subject of a giant write-down, shareholder lawsuits, fraud investigations, plunging license sales, massive employee turnover, and other woe. Meg Whitman was saying all the right things about supporting Autonomy last month. Update: H-P responds by stating it has "no interest in selling Autonomy," and that SAP is the one that made inquiries about software asset sales (with H-P turning them down).

    | May 13, 2013, 11:46 AM | 1 Comment
  • May 2, 2013, 2:51 PM

    SAP's (SAP -0.2%) attempt to overturn a $345M patent infringement verdict awarded to private Versata Software in 2011 has been shot down by an appeals court. Versata alleges price-determination software found in SAP's core ERP software suite infringes its patents. However, the appeals court has asked the trial court to change the text of an injunction placed on SAP's pricing software, so as to allow SAP to sell new seats and maintenance services to existing users.

    | May 2, 2013, 2:51 PM
Company Description
SAP SE provides enterprise application software and software-related services worldwide. It operates through the On-Premise and Cloud segments. The On-Premise segment comprises of on-premise products and on-premise services divisions. The on-premise products division is involved in marketing and... More
Sector: Technology
Industry: Application Software
Country: Germany