SAP Q4 results: Is ERP recession-proof?

SAP will be posting its fourthquarter 2008 results tomorrow, amid speculation that the enterprise software business is being hit hard because businesses...

SAP will be posting its fourthquarter 2008 results tomorrow, amid speculation that the enterprise software business is being hit hard because businesses are deferring upgrades to their enterprise resource planning systems.

Following its third quarter results posted in October 2008, SAP said it would no longer publishrevenue for its non-accounting software separately from its accounting software.

Some industry observers have taken this statement to suggest that SAP will experience a shortfall in its licence revenue for its fourth quarter 2008.

In a posting on the SeekingAlpha blog site,Jeffrey Kaplan,founder and managing director of THINKstrategies, a strategic consultancy, noted that SAP has not truly embraced software as a service. He said, "SAP and other 'legacy' application [providers] face stiff challenges migrating their software to an on-demand platform and business model."

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