Thu, Feb. 12, 2:22 PM
- A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
- Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
- Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
- EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
- Earlier: Telecom/networking stocks rally thanks to Cisco
Tue, Feb. 3, 6:53 PM
- S/4HANA, a new version of SAP's mainstay Business Suite (contains the company's core ERP apps), runs only on top of the company's Hana in-memory database, and is declared by SAP to fully leverage Hana's in-memory and real-time transaction-processing abilities.
- SAP is also providing a simplified data model with its update, and a revamped UI. On-premise, cloud and hybrid deployments will be supported. SAP has already been offering a cloud-based version of the Business Suite that runs on top of Hana. However, S/4HANA will sport a code base created specifically for Hana.
- CEO Bill McDermott calls S/4HANA SAP's biggest product launch since 1992, when it unveiled its R/3 ERP suite. While the company's traditional software license sales have come under pressure thanks to the cloud transition, the hit to Business Suite has been buffered by the fact enterprises (for now, at least) are more nervous about migrating core ERP apps to the cloud than they are about migrating CRM or HR apps.
Tue, Jan. 20, 9:16 AM
Tue, Jan. 20, 6:06 AM
Tue, Jan. 20, 2:50 AM
- SAP (NYSE:SAP) has lowered its profit outlook for 2017, saying its push into cloud-based software would eat into its profit margins.
- "I think we're doing the right transition, we're a growth company and this is what the investor wants," said SAP Chief Executive Bill McDermott.
- The company announced earlier that it expected to reach an operating margin of 35% on revenues of up to €22B in 2017 resulting in an operating profit of around €7.7B, but now expects operating profit of €6.3B-€7B on revenues of €21B-€22B.
Mon, Jan. 19, 5:30 PM
Mon, Jan. 12, 10:34 AM
- SAP reports non-IFRS preliminary Q4 revenue of €5.47B ($6.45B), +7% Y/Y (+4% at constant currency) and above a €5.37B consensus. Q3 growth was 5% in both euros and constant currency.
- Q4 growth was fueled by a 72% Y/Y increase in cloud subscription/support revenue (boosted by the Concur deal, which closed on Dec. 4) to €360M. Traditional software license revenue -2% to €1.87B; support revenue (driven by past software deals) +10% to €2.51B. Cloud billings +115% to €591M.
- Op. profit +1% (-2% at constant currency) to €2.13B, and op. margin -210 bps to 38.9%. For the whole of 2014, revenue rose 4% to €17.56B ($20.7B), and op. profit fell 3% to €4.33B.
- Full Q4 results, along with SAP's 2015 outlook, are due on Jan. 20.
Mon, Jan. 5, 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
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