SAP Steals Share From Oracle In Strong Quarter - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Government // Enterprise Architecture
08:59 AM
Connect Directly

SAP Steals Share From Oracle In Strong Quarter

Applications software license growth increased by 18%, versus 16% reported by Oracle in most recent quarter.

SAP reported a 26% increase in software revenue for the second quarter on Tuesday, with strong application sales besting Oracle's organic license growth and driving an overall increase of 14% in software and software-related service revenues at the company.

SAP's total revenue for the three-month period ended June 30 was 3.3 billion Euros ($4.76 billion), up 14% from the same period last year, according to international financial reporting standards (IFRS). The figures were even more impressive in constant currencies, with non-IRFS software sales increasing 35%, support revenues up 15%, and total software and software-related service revenues up 20%.

Reuters reported Wednesday that SAP's performance helped it gain market share against rival Oracle for the first time in 18 months. Based on analysis by Matrix Research and excluding results from Sybase, which was acquired last year, SAP's applications software license growth increased 18%, versus 16% reported by Oracle in its most recent quarter.

SAP's profit outlook was also strong, and the company confirmed yesterday that it will finish the year at the high end of its projected non-IFRS operating profit range of 4.45 billion to 4.65 billion Euros ($6.42 to $6.71 billion), up 10% to 14% over last year in constant currencies.

SAP executives told analysts that the company's four-pillar strategy of driving core applications sales together with the enhancements of in-memory computing (Hana appliance), mobile applications, and on-demand (Business ByDesign) services. But it appears that conventional on-premises apps were the real story, as the enhancement offerings have yet to make their biggest impact on the bottom line.

"We are witnessing a structural change in the IT market: Customers are shifting more of their investments toward software as it continues to become a larger and more important component of the overall technology stack," said Jim Hagemann Snabe, co-CEO of SAP, in statement on Tuesday's earnings release.

ERP is old news, but enhancing legacy software with mobile, analytics, and social apps can deliver substantial new value. Also in the new, all-digital issue of InformationWeek: SaaS can create new data silos unless companies follow best practices to make those apps work with on-premises systems and data sources. Download the issue now. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Pandemic Responses Make Room for More Data Opportunities
Jessica Davis, Senior Editor, Enterprise Apps,  5/4/2021
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
Transformation, Disruption, and Gender Diversity in Tech
Joao-Pierre S. Ruth, Senior Writer,  5/6/2021
White Papers
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Flash Poll