SAP Wants to Bounce Back after US Trial


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

Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More