SAP saw its shares fall 16 per cent on Nasdaq yesterday, in a market which fell five per cent, after it warned it had seen sales fall off a cliff in the last two weeks of September. The company said it was likely to increase revenues by 13 to 14 per cent in the third quarter of 2008 - software and software-related revenues will …
Another Snake Oil Sales Person Foaming at the Mouth?
"Kagerman insisted the market fundamentals of SAP's business were sound, and that it had double-digit revenue growth and had increased market share."
Well, he is bound to insist that, isn't he. However, the stark reality is, that having had double-digit revenue growth and increased market share in a collapsing market place suggests that they are catalysts of the problem rather than having any sound business model.
Can we have a "its the Global Financial Crisis's fault, honest guv!" tag, or newsstory section.
So they are still making a profit then?
So what's the problem, ok, so it's less of a profit than they were expecting - well boo hoo.
As long as a company makes a profit (any profit) it can stay in business, the needless panic, cutting back on projects and automatically getting rid of staff so that shareholders and market analysts aren't disappointed is very shallow and short-term behaviour, and in the middle to long-term is very damaging to everyone.
They have increased the cost of support by 5% and there is no way to avoid having to pay the extra - I think that might help boost their revenue figures.
Of course that doesn't take fully into account all the money that is being paid to the various consultants as well - as it was, is now, and shall be, SAP is a licence to rake in money from companies that believe in PowerPoint presentations.
SAP=[S]tops [A]ll [P]rogress
I'll get my coat.