Wednesday, May 13, 2009

Does SAP sees signs of recovery from recession?

SAP Co-Chief Executive Leo Apotheker said the next few months may bring "glimmers of hope" for the global economy.

Apotheker also said he believes the business software maker should stay independent, following fresh speculation in European markets that Microsoft Corp could bid for the German company. The talk was sparked by Microsoft's plans to sell a multibillion-dollar debt issue.

"We're probably starting to see a stabilization of the situation," Apotheker said at a news conference in New York. "We'll probably start to see some glimmers of hope in the second half of the year for the global economy." Global markets will likely see a fuller recovery in 2010, he added.

The S&P 500 and Dow industrials pared losses after his comments. Apotheker, who will become the sole CEO of SAP when Henning Kagermann's retires later in May, declined to comment on the Microsoft speculation, but said he believed it is in SAP's interest to remain independent.

"Our customers believe an independent SAP is the best value they can get," he said. Rumors periodically surface that either IBM or Microsoft might acquire SAP, which sells business management applications to large businesses that neither of those technology giants have in their portfolios.

Apotheker criticized rival Oracle Corp's decision to purchase hardware maker Sun Microsystems Inc, saying that businesses do not want to buy from vertically integrated technology companies that sell software alongside the computers that run it.

"I'm sorry to disappoint you," he said in response to a question on how Oracle's $7.4 billion purchase of Sun might reshape the industry. "It won't affect the industry much."

But Apotheker said SAP will do a few acquisitions "as we go along." SAP announced on Monday that it bought privately held Clear Standards, a small maker of software that helps businesses manage greenhouse gas emissions. Apotheker did not discuss financial terms of the acquisition.

Sterling, Virginia-based Clear Standards sells software that helps companies measure and mitigate greenhouse gas emissions, which contribute to global climate change and are increasingly coming under regulatory scrutiny.

Apotheker also said that previously announced job cuts are progressing as planned at SAP. The company is not planning any more job cuts, he added.

Agencies

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