Through The Fly's Eyes: SAP
SAP's Weak Results Point To Oracle's Success
SAP AG (SAP), which warned earlier in the month, made comments in yesterday's Q4 earnings conference call point to Larry Ellison's prognostication of SAP's demise being more and more correct.
Back in September, after reporting a blow-out quarter, Oracle's (ORCL) Ellison said SAP is a number of years behind. Ellison went as far to say that if Oracle doesn't screw up, SAP is in big trouble.
Since Ellison made those comments, more and more evidence is coming out supporting his view. Since late 2006, SAP has reported poor results and IBM has reported weak results in businesses that work closely with SAP.
SAP said it is going to spend an extra 300 to 400 million euros over the next eight quarters for new software development. This further supports Ellison's claim of SAP beginning behind the curve.
Oracle's stock had a good year in 2006 with industry spending in a lull. But now it appears the lull is over and Oracle could be off to the races again.