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The reliance on computer systems in business makes software one of the most important investments a company can make. During the recession, software sales dried up as companies made do with what they had. Costly updates could wait. But investors now expect demand to return in a big way as the economy improves.
Heavy hitters such as Germany's SAP haven't responded as well to the downturn as some of the smaller players have. After less than a year on the job, Chief Executive Officer Leo Apotheker resigned, raising questions about the continuity of the business during a difficult period. SAP's stock has risen about 33% over the past year as more nimble companies like Sybase has gained 56%, while SAP's chief rival, Oracle, has increased 47%.
Oracle has used the recession to scoop up Sun Microsystems at a discount, diversifying its offerings in the process. Now the company can offer complete services to customers, integrating the hardware and software into one seamless system, effectively making one-stop shopping possible.
Much the same as with home computers, one of the biggest selling points for business systems is hassle-free use. Anyone who has dealt with computer systems in a large business setting will tell you that the Holy Grail in computer systems is a "set it and forget it" system that requires no triage. While that may be a pipe dream, the less maintenance a computer system requires, the better. That's where sales will be won and lost as companies once again ramp up spending. |
