Source:
Market Watch
URL link:
http://www.marketwatch.com/news/story.asp?guid=%7B403FDE01-87C5-4085-BAFC-
4D15EAC91158%7D
Highlights:
SAP, based in Walldorf, Germany, launched the program, known as Safe Passage, in January 2005 in an effort to woo
customers of PeopleSoft and JD Edwards, which had been acquired by Oracle Corp. (ORCL). Last week, Oracle agreed to acquire
Siebel, the leader in customer relationship management software, for $5.85 billion.
"We think Siebel customers will
face the same type of uncertainty as PeopleSoft and JD Edwards customers," SAP spokesman Bill Wohl told Dow Jones Newswires.
"I'm not sure we'll wait until the deal closes (in early 2006)."
SAP is the leader in the market for business
management applications, which manage accounting, monitor inventory, and track customer data. Oracle - SAP's chief rival -
has been bolstering its challenge through acquisitions, particularly its $10.6 billion deal for PeopleSoft and JD Edwards.
SAP claims that 28 customers have switched under the program and that some 200 customers are considering a switch.
Oracle, which responded to SAP's Safe Passage program with its own offer, called "OFF SAP," Monday said that a
number of SAP customers have switched to Oracle and that more than 1,000 SAP customers have registered for the program.
The respective programs are more a reflection of the two companies' rivalry than significant market factors. In
general, business software customers rarely switch vendors because of the complexity of the
implementations.