Through The Fly's Eyes: Oracle Corporation

from Theflyonthewall.com




Larry Ellison Goes For The Kill

Bye Bye SAP. Larry did not hold back last night bashing SAP in it earnings conference call. Larry Ellison's confidence has been building the last few quarters. But last night he let loose, essentially saying that SAP is in big trouble.

The key to Oracle's (ORCL) success has been focusing on developing an open standards middleware based on Java. SAP is sticking to its proprietary software. Ellison said that Oracle's middleware supports more SAP software than SAP's middleware does. This allows Oracle to sell many of its best of breed software that it has acquired the past few years to SAP customers.

What is SAP's response? According the Ellison, they are two years behind Oracle. Ellison cited that SAP growth rate in the most recent quarter was 8%, while Oracle's was 80%. Ellison implied that SAP will lose market share for the next two years.

The master Samurai appears to be back on top.