March 3, 2010
Oracle, SAP Return in a Big Way
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.
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.