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SAP benefits from Oracle-PeopleSoft battle

Regardless of whether Oracle succeeds in its hostile takeover bid for PeopleSoft, market leader SAP will be the one to reap the benefits, according to an executive for SAP.

"If the takeover fails it creates uncertainty in the market, and if the companies merge it creates uncertainty ... which is good for us," said SAP senior vice-president and chief operating officer Jim Hagemann Snabe.

In fact, SAP has already benefited from the prolonged takeover attempt, by growing its market share while Oracle and PeopleSoft have been focused on battling each other, according to Snabe.

Among the six largest providers, SAP's share of the business applications market has increased over the last four of five quarters to 54%, from 45% to 48% before, he said.

And while SAP banks on the uncertainty, Oracle has not given up on its offer, which it initiated in June 2003. The company said last week that it may make yet another offer.

On the theme of acquisitions, Snabe said Microsoft's merger discussions with SAP late last year were short-lived.

"The talks were very short. For two companies to merge they must have synergy ... and it didn't make sense because both companies are very successful in their own right," the SAP executive said.

Scarlet Pruitt writes for IDG News Service


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