Volume 20, Number 2 -- January 17, 2011

Rising Spending Tide Finally Raises the SAP Boat

Published: January 17, 2011

by Timothy Prickett Morgan

A rising tide indeed does eventually raise all boats. The recovery in application software spending that has been helping Oracle post decent financial results in the past few quarters has finally lifted the revenues of SAP, which is still the largest provider of applications on the planet and which still supports the OS/400 and IBM i platform.

SAP released preliminary financial results for the fourth quarter of 2010, which include the revenue and profits it will derive from its acquisition of database maker Sybase. In the quarter, SAP said that it raked in 1.5 billion in software license sales, up 34 percent from the 1.19 billion in software sales it booked in the year ago quarter. Including software-related services revenues, the SAP haul in Q4 was 3.26 billion, up 27 percent from Q4 2009. Total sales, including online applications, professional services, and other items came to 4.04 billion, up 27 percent as well.

For the full year, SAP is expecting to book 3.26 billion in software license sales (up 25 percent), 9.78 billion in software and support fees together (up 19 percent), and total revenues of around 12.45 billion (up 17 percent).

SAP did not report any estimates of its Q4 profits because of its ongoing lawsuit with Oracle concerning the now-defunct TomorrowNow third party support operation. In late November, a jury awarded Oracle a $1.3 billion settlement in that lawsuit. SAP has admitted to wrongdoing on the part of TomorrowNow, but still believes that the damages awarded to Oracle are way out of whack with the actual damages to Oracle from the TomorrowNow operation.


Jury Says SAP Owes Oracle $1.3 Billion Over TomorrowNow Theft

Oracle and SAP Talk Settlement on TomorrowNow Legal Fees

SMB Customers, BI Projects Lift SAP's First Quarter

SAP Tests Prove i 7.1 Performance Boost Over i 6.1

Power 750 Servers Running i Get SAP Benchmarks

Big Executive Shakeup and Shakeout at SAP

SAP to Finally Ship Business ByDesign SaaS Suite

SAP Says 2009 Ended Better Than Expected, Rejiggers Maintenance Fees

SAP Puts Off Software Maintenance Price Hike

SAP Profits Despite Sales Slump and Weak Economy

IBM Touts Power Systems Prowess on SAP Tests

IBM Shows Off Power6+ Performance on SAP, Lawson Apps

SAP Boots Business ByDesign SaaS Apps to 2010?

SAP Launches Business Suite 7, Reports 2008 Financials, and Cuts Jobs

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Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik, Victor Rozek,
Jenny Thomas, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
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