A head-to-head examination of how the two software giants were able to increase net income during a global recession in which revenues plunged. Everyone loves to pit Oracle and SAP against one another—including the executives of the two behemoths that sell ERP, CRM, BI and supply chain software. Now that SAP just released its most recent quarterly revenues (Oracle did so about a month ago), now is as good a time as any to break down—in a head-to-head balance-sheet battle—just how each fared during the waning weeks of 2009’s global economic recession (as CIO.com did when the recession was first wreaking havoc in January). Read the Enterprise Software Unplugged Blog SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe In addition, we’ll look at the top challenges facing each vendor now, and what the “safe harbor” outlook for the rest of 2009 is. (Two things to note: Oracle’s and SAP’s fiscal years don’t run on the same calendar periods. So I’m actually looking at Oracle’s Q1 FY 2010 numbers vs. SAP’s Q3 FY 2009 numbers. “Change” compares the most recent quarter’s GAAP results to the quarter the year previous.) Total Revenues / Change Oracle EDGE SAP $5.1B / -5% $3.6B / -9% Net Income / Change Oracle EDGE SAP $1.1B / +4% $645M / +12% Total Operating Margins / Change Oracle EDGE SAP 35% / +5 percentage points 24% / +2 percentage points Software Revenues / Change Oracle EDGE SAP $1B / -17% $779M / -31% Service & Support Revenues / Change Oracle EDGE SAP $3.1B / +6% $1.9B / -3% Earnings Conference Call Quote Oracle EDGE SAP Oracle President Charles Phillips : “I think we are definitely taking share from SAP in the Americas and even in Europe, to some extent. They don’t have a vertical strategy….” SAP CEO Leo Apotheker (alluding to Oracle Fusion Applications): “You’re going to have put on your glasses to see Oracle in the rearview mirror. I don’t think anything has changed.” The Maintenance Problem Oracle EDGE SAP “A lot of customers are getting concessions in maintenance contracts from both these companies [Oracle and SAP].” -Ray Wang, an analyst with Altimeter Group, to the Dow Jones “The Siemens negotiation may be a harbinger of change: Maintenance (revenues) may no longer be an entitlement.” -Patrick Walravens, JMP Securities analyst, in a research note Big, Scary Numbers to Consider Oracle EDGE SAP GAAP operating cash flow on a trailing 12-month basis: $8.8 billion. Consulting revenue dropped 22 percent and training revenue plunged 43 percent quarter-over-quarter. “Forward-Looking” Statements Oracle EDGE SAP “No one is sticking their neck out on the forecasts in any region right now, so I think the pipelines have been scrubbed,” said Oracle’s Phillips. Revenue declines from software and software-related services will continue, and may accelerate, for the rest of 2009, execs said. Nagging Questions Oracle EDGE SAP Fusion Apps has got buzz—now what? What’s the status with that Sun deal? Will Oracle ever settle TomorrowNow lawsuit with SAP? Is the Siemens maintenance flap going to have long-term consequences? How will they monetize Business ByDesign? Tomorrow-who? Table by Thomas Wailgum Do you Tweet? Follow me on Twitter @twailgum. Follow everything from CIO.com on Twitter @CIOonline. Related content feature The dark arts of digital transformation — and how to master them Sometimes IT leaders need a little magic to push digital initiatives forward. Here are five ways to make transformation obstacles disappear. By Dan Tynan Oct 02, 2023 11 mins Business IT Alignment Business IT Alignment Business IT Alignment feature What is a project management office (PMO)? The key to standardizing project success The ever-increasing pace of change has upped the pressure on companies to deliver new products, services, and capabilities. And they’re relying on PMOs to ensure that work gets done consistently, efficiently, and in line with business objective By Mary K. Pratt Oct 02, 2023 8 mins Digital Transformation Project Management Tools IT Leadership opinion The changing face of cybersecurity threats in 2023 Cybersecurity has always been a cat-and-mouse game, but the mice keep getting bigger and are becoming increasingly harder to hunt. By Dipti Parmar Sep 29, 2023 8 mins Cybercrime Security brandpost Should finance organizations bank on Generative AI? Finance and banking organizations are looking at generative AI to support employees and customers across a range of text and numerically-based use cases. By Jay Limbasiya, Global AI, Analytics, & Data Management Business Development, Unstructured Data Solutions, Dell Technologies Sep 29, 2023 5 mins Artificial Intelligence Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe