Monday, July 21, 2008

Is SAP going to make some noise?

A case can be made that SAP has made plenty of noise over the past 10 years or so. But for whatever reason, $16 Billion in annual revenue and 25%+ market share in the ERP space just doesn't seem to bring out the headline writers.

Of course, ERP software doesn't directly impact consumers, and their chiefs aren't clamoring for the spotlight (ahem, Mr. Ellison). But they've been pretty steady in terms of revenue and profit performance for a reasonably long period of time, now. Plus, their strategic direction appears to be quite sound. SAP has improved their release strategy (offering less disruptive, but more frequent updates), targeting small and midsized businesses, allowing developers to extend the application, and driving more integration with MS Office and Business Objects. Coupled with an aggressive sales force and smart brand-awareness decisions, it seems to me that SAP is on the right track. I haven't followed their acquisitions, so that's still an open question.

For more, read the CIO Magazine Article.

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