Tags: sap | oracle | softwar

SAP Software Campaign Steps Up Rivalry with Oracle

Tuesday, 10 Apr 2012 03:59 PM

SAP AG, the largest maker of business-management software, plans to spend almost $500 million to lure customers to its Hana data-processing product, stepping up competition with Oracle Corp.

The Walldorf, Germany-based company has budgeted $337 million to provide new Hana clients with consulting services and an 18-month refund policy, SAP said in a statement Tuesday. SAP is also starting a $155 million venture fund to spur development of applications compatible with Hana.

With the introduction of Hana and the $5.8 billion purchase of database maker Sybase Inc. in 2010, SAP ratcheted up efforts to challenge Oracle’s dominance in the $22.5 billion global database market. Hana is designed to quickly analyze vast caches of sales and operational information, as well as unstructured data such as e-mail and social media. It relies on computer memory, rather than disk drives, to speed up the process.

“Because of the breakthrough in our innovation in Hana and our experience with Sybase, we have the opportunity to become the fastest-growing database company in the world,” said Vishal Sikka, an SAP board member in charge of technology and and innovation, at a presentation in San Francisco today.

The promotional effort comes as co-Chief Executive Officers Bill McDermott and Jim Hagemann Snabe use acquisitions to expand SAP’s database offerings from desktop computers to mobile devices and tablets, a push they project can help lift SAP’s revenue to more than 20 billion euros ($26.2 billion) by 2015, compared with 14.2 billion euros last year.

Syclo Acquisition

SAP also said today it plans to buy Syclo, a closely held provider of mobile applications, for an undisclosed sum. Earlier this year, SAP this year bought cloud-computing specialist specialist SuccessFactors Inc. for $3.4 billion.

SAP’s McDermott in January forecast that revenue from Hana products will more than double this year from 160 million euros in 2011, when the software was first rolled out to a wider audience.

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