SAP (NYSE:SAP), one of the largest enterprise software company in the world, recently announced its Q3 earnings results, with new software sales up 28%. It competes primarily with heavyweights like Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and IBM (NYSE:IBM) in enterprise software, and has significant market share in the ERP, CRM, BI and database markets.
SAP’s chief executives have stated that SAP plans to focus on three key trends – mobile, big data and cloud computing – to drive growth in the coming years.   We currently have a $63 Trefis price estimate for SAP, which stands nearly about in line with its current market price. ERP, CRM and BI software account for nearly 70% of its total Trefis price estimate.
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Mobile, Cloud and Big Data!
The enterprise market for mobile and tablet apps is growing rapidly. SAP recently launched new mobile apps for human resource professionals. It is supposedly working on mobile versions of its popular enterprise apps. It also launched the Sybase Unwired platform, a mobile app development platform targeted at enterprises.
The cloud computing market is under siege by most major enterprise software makers including SAP, Oracle and Microsoft. Oracle is launching on-demand versions of its apps, and also announced the Oracle Public Cloud last month at the Open World Conference. SAP recently partnered with HP to provide cloud based delivery of SAP applications via HP’s enterprise cloud platform.
It is also working to launch cloud based, on demand versions of its enterprise offerings. It recently launched a new cloud based business intelligence offering – BI OnDemand.
Big Data and Analytics is another market the three giants – SAP, Microsoft and Oracle – are zeroing in on. Oracle first announced support for big data with its new Big Data Appliance and Oracle NoSQL database at the Open World conference, and was followed by Microsoft which announced Hadoop support for SQL Server 2012. SAP also announced Hadoop integration with Sybase this week. The HANA high performance analytics appliance has been seeing a lot of traction in enterprises.Notes:
- SAP to embrace mobile desktop, big data and consumerisation in 2012, Computer Weekly [↩]
- SAP readies comprehensive cloud strategy, Information Week [↩]