SAP AG, whose new software sales plunged 33 percent last quarter, is struggling to wrest orders from Oracle Corp. as more customers like Jeff Kuckenbaker opt for the U.S. company's software and services to run businesses.
Kuckenbaker, who manages technology at Star Trac, an Irvine, California-based fitness-equipment company with four million clients in 75 countries, picked Oracle over SAP last month to tie its diverse computers into a seamless network.
"Oracle demonstrated the best ability to address our globalization, working in multiple languages and currencies," said Kuckenbaker, the vice president for information systems. Oracle's range of products let him link operations "without having to be in the business of software integration."
SAP, the world's biggest maker of business-management software that tracks purchases and handles payroll, is losing market share to No. 2 Oracle. Corporations are reining in spending and seeking to buy more software from one company to get a better price. Oracle Chief Executive Officer Larry Ellison has been the most acquisitive in the industry to expand his offerings. SAP CEO Leo Apotheker has made few deals, preferring to lean on internal development.
SAP is "clearly losing market share," said Adam Wood, a Paris-based analyst at Exane BNP Paribas who rates SAP "underperform." "Because of the acquisitions Oracle has made recently, it's left them with a bigger product range for their existing customers."
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Sunday, June 21, 2009
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