SAP Wants to Bounce Back after US Trial

By Ed Silverstein January 20, 2011

Just a few months after SAP AG was ordered to pay $1.3 billion to Oracle – ending the U.S. trial which focused on intellectual property theft claims – the German-software company is planning to restructure itself, according to a report from Manager Magazin.

The sizable amount shocked some observers given that SAP in 2009 earned after-tax profit of about $2 billion, according to MSNBC.

As part of its bounce back, SAP AG announced a goal that it will earn 20 billion Euros ($27 billion) in sales by 2015, according to Manager Magazin. Current sales are about 12.5 billion Euros (about $9.282 billion.)

SAP also wants to increase operating margins from 30.5 percent to 35 percent during the same four-year period, the report from Manager Magazin said.

Reuters reports that SAP’s sales of software products increased about a third during the fourth quarter of 2010.

SAP is expected to restructure during the current first quarter, Reuters quoted the German magazine as saying.

Reuters explained that shares of SAP “have had a rocky ride over the last few months.”

It was just not due to the recent litigation in the United States. There were rumors the company may have been the target of a takeover, according to Reuters.

Reuters also said that SAP said is hoping for margin growth of 1 percentage each year.

Reuters says that SAP can likely generate growth from new markets, according to reporting from Manager Magazin.

The new markets include on-demand software and mobility, Reuters said.

Existing markets may produce “significant revenue” for the company, too, according to Reuters.

In fact, TechZone360 reported this week that SAP software revenues for the fourth quarter increased about 34 percent to about 1.5 billion Euros ($1.999 billion). Plus, SAP also reported a 27 percent increase in its software and software-related services revenue at 3.26 billion Euros ($4.34 billion).

For all of 2010, SAP's revenue from software and software-related services increased to 9.78 billion Euros ($13.02 billion), an increase of 19 percent over the previous year, according to TechZone360.

Total revenue for 2010 increased 17 percent, to 12.45 billion Euros ($16.58 billion), TechZone360 added.

Want to learn more about the latest in communications & technology? Then be sure to attend ITEXPO East 2011, taking place Feb 2-4, 2011, in Miami. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Why Blockchain Could Be a Gamechanger

By: Paula Bernier    1/22/2018

Blockchain has become closely associated with the controversial topic of cryptocurrency. And that's fine because blockchain is an enabling technology …

Read More

Consumer Privacy in the Digital Era: Three Trends to Watch

By: Special Guest    1/18/2018

Digital advertising has exploded in recent years, with the latest eMarketer data forecasting $83 billion in revenue this year and continued growth on …

Read More

CES 2018: Terabit Fiber - Closer Than We Think

By: Doug Mohney    1/17/2018

One of the biggest challenges for 5G and last mile 10 Gig deployments is not raw data speeds, but middle mile and core networks. The wireless industry…

Read More

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More