SAP Worth $71 On Database Management Growth

-17.85%
Downside
205
Market
168
Trefis
SAP: SAP logo
SAP
SAP

SAP AG (NYSE:SAP) is the fastest-growing among top vendors in the relational database management systems (RDBMS) market, according to a new report from IDC. It has gained the highest revenue growth rate in the market beating rivals such as Oracle NASDAQ:ORCL) and Salesforce.com (NYSE:CRM). With revenues of ~$1 billion, it is now ranked fourth in the RDBMS market from a market-share perspective. SAP’s ‘Big Data’ initiative, SAP HANA has been the primary driver of this growth.


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Big Data Driving SAP Growth

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SAP is targeting revenue from HANA to be at least Euro 320 million ($ 422 million) for 2012 and has already outperformed the worldwide RDBMS market growth rate of 15.1 percent by growing 44 percent from 2010 to 2011.

SAP Sybase ASE, SAP Sybase IQ, SAP Sybase SQL Anywhere and SAP HANA revenue lead to the growth mainly driven by the addition of SAP HANA into its RDBMS product portfolio. The SAP HANA platform and solutions from Sybase help organizations unlock the business value of ‘Big Data’ by enabling them to access and deliver information faster than before with real-time insights. It also claims the HANA platform can deliver information up-to 1,000,000 times faster than before due to its in-memory computing. [1]

This is a key SAP innovation and data can be processed at a much faster rate than traditional methods. It is also cheaper as it runs on standard inexpensive hardware and is most likely the reason for its high growth in 2011. We expect this growth to continue in 2012 as ‘Big Data’ solutions are adopted by more companies.

We currently have a $71 Trefis Price Estimate for SAP which is about 25 percent more than the current market rate.

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Notes:
  1. SAP Becomes Fastest-Growing Vendor in Relational Database Management Systems Market, www.sap.com, June 8, 2012 []