SAP (NYSE:SAP) announced that it will now be using HANA (high performance in-memory database appliance) to power the NetWeaver Business Warehouse, instead of Oracle‘s (NASDAQ:ORCL) database offering or IBM‘s (NYSE:IBM) DB2. [1] [2] It recently launched HANA, which offers much faster performance than traditional databases for data storage, retrieval and processing. SAP has been counting on HANA to boost its share in the business intelligence software market, in which it competes primarily with Oracle, IBM and Microsoft (NASDAQ:MSFT).
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The NetWeaver data warehouse offering acts as a data hub for SAP’s business intelligence software and other apps. Using HANA to power the data warehouse will not only increase performance and execution speeds, but also simplify platform management and reduce operating costs for the customer. NetWeaver has already been deployed by around 13,000 customers. SAP aims to reduce the need for its customers to rely on Oracle’s database offerings, while exposing them to HANA’s superior performance, in a bid to boost sales.
SAP currently has 25% share in the business intelligence software market. It recently also launched an on-demand version of its BusinessObjects BI software, which is powered by HANA as well. Based on its recent moves in the space, we expect it to continue gaining market share, approaching 28% by the end of the forecast period. Business Intelligence software accounts for nearly 12% of its $63 Trefis price estimate, which stands nearly 10% above its current market price.
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Notes:- SAP Data Warehouse Software Now Relies On HANA Database, CRN [↩]
- SAP Slides HANA Under Business Warehouse to Boost BI, Managing Automation [↩]
