The project, which calls for replacing Wal-Mart's legacy systems with SAP ERP Financials, may be worth hundreds of millions of dollars.

Mary Hayes Weier, Contributor

October 18, 2007

1 Min Read

SAP has won a deal to replace Wal-Mart's legacy financial systems with SAP ERP Financials. The amount of the contract, announced Thursday, wasn't disclosed.

Wal-Mart selected SAP after a "thorough evaluation," and the system will support the $350-billion-a-year retailer in its next phase of growth, according to the companies. Wal-Mart will implement SAP financials globally in phases, with the first phase expected to be completed in 2010. The companies said SAP was partly chosen because of its ability to help Wal-Mart adjust to changes in the business and regulatory landscape. Wal-Mart plans to integrate SAP financials with remaining internal systems.

"Technology has played a central role in the growth and success of our business," said Wal-Mart CIO Rollin Ford in a prepared statement. "We believe SAP's experience in helping global companies with their financial systems will bring more flexibility and scalability to our growing business."

While the companies wouldn't reveal the size of the deal, Wal-Mart has one of the largest IT infrastructures in the world and the deal appears to represent a substantial global rollout. That means it could, potentially, be worth hundreds of millions of dollars.

SAP reported Thursday that, for its third quarter ended Sept. 30, it had revenue of 2.42 billion euros (about $3.46 billion), up 9% from the same period one year earlier. Net income was 408 million euros ($583 million), up 10%.

SAP's software and software-related service revenue for the quarter was 1.74 billion euros ($2.49 billion), while software revenue was 715 million euros ($1.02 billion), with year-over-year gains of 13% and 11%, respectively.

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