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Oracle bid helps us, claims SAP chief

Uncertainty surrounding Oracle's hostile bid for PeopleSoft has helped boost customer interest in products from rival SAP,  claims SAP chief executive officer Henning Kagermann.

"What companies are doing is look at alternatives, but you cannot expect a company to immediately jump to another vendor because the investments made are huge," said Kagermann.

"Normally the sales cycle in our industry is between six and nine months," Kagermann said. "So what we are seeing is some interest, some demand, some leads coming into the pipeline."

Whether this interest translates into business will only be known in the next four to six months, he added.

"Companies worldwide are confused about this consolidation because they don't know what is going to happen to their products and to their investments.

 "That is why we are telling the world that there is this very reliable, trustworthy market leader who can help them to shift easily from their PeopleSoft or Oracle or whatever product to SAP," Kagermann said.

The proposed acquisitions are unlikely to come under antitrust scrutiny in Europe, as SAP has close to a 70% market share, and is a clear market leader.

John Ribeiro writes for IDG News Service


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