SAP attacks rivals' proprietary strategy, announces Q3 results


SAP attacks rivals' proprietary strategy, announces Q3 results

Microscope contributor
By Billy MacInnes

SAP launched a thinly veiled attack on rivals such as Oracle that "want to lock in their customers to a single vendor on one proprietary technology stack" as it reported a 20% increase in third quarter revenues.

For the period ending 30 September 2010, SAP reported total revenues of €3bn and profits of €501m, 12% up on the same quarter in 2009.

Jim Hagemann Snabe, co-CEO at SAP, put rivals in the firing line with his accusations that they were basing their strategy on proprietary technology stacks. "The experience we have gained with our more than 100,000 customers over many years tells us that they want choice, openness and innovation from their technology partners," he argued.

As rival vendors took the opposite course of focusing on proprietary technology stacks, SAP's business was becoming more important to customers because it provided "choice, innovation, co-innovation, a completely open platform and the resources of a vast ecosystem of partners, with whom we continue to forge even stronger relationships".

Commenting on SAP's results, CFO Werner Brandt stated all regions had reported growth in the third quarter but the US had been particularly strong along with the emerging markets of Asia, Europe and Latin America.

"We saw a good mix of revenues among small, midsized and large enterprises, and we had an increase in deal volume," he continued.

SAP's results came a day after Larry Ellison, CEO at rival Oracle, claimed it would prove in court that former SAP CEO Leo Apotheker knew the company and its TomorrowNow subsidiary had illegally downloaded large amounts of Oracle software.

Apotheker is now CEO at HP. He replaced Mark Hurd who resigned in August in the aftermath of an investigation into a sexual harassment claim that discovered irregularities in his expense claims. A month later, Hurd joined Oracle as president.

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