Where SAP is going?

SAP, the German leader of the business software knows a difficult beginning for the year 2010. Indeed, the results for 2009 show it. The turnover and the net income are down, respectively of -8% and of -4%. These results show that this German giant meets some difficulties, which has already led the company to a change among the direction.

There are many reasons to explain that: a competition that becomes stronger and stronger ( with Open ERP for example) and the economic crisis of course, which led the company to lay off 3000 employees (either 6% of the wage bill). We can also underline the launch of a new version of its product that targets the small and medium-size companies. The company spent a lot on this project and didn’t meet success (only hundred customers worldwide…).

Today, it is obvious that the support, maintenance and services are the main axis of the development strategy of the company.

To keep its leadership, SAP conducts many buyouts (Cogehead, Highdeal …), and innovates by offering new products such as software for managing the sales force.

But, will these efforts be enough to keep the ranking n°1 on this market? Time will tell us …

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