SAP: Will enlarge the market to 220 billion dollars

21st Century Economics report Huang for a long time, the "war" between SAP and Oracle (NASDAQ:ORACLE) is almost synonymous with Germany's classic case of precision innovation against open innovation in the United States. Both are supporters of the world's top 500 companies. The former is the world's largest business applications, enterprise resource Planning (ERP) solutions and independent software suppliers, Europe's largest software company, the latter is the world's largest enterprise software companies. As the two giants of business application software, the infighting between them never stops. The eighties or nineties of the 20th century is the development period of enterprise preset commercial application software, especially ERP (Enterprise resource planning software) software. Founded in 1972 and headquartered in Germany, SAP is a leader in business application software thanks to Germany's strong manufacturing and lean process management practices. Soon after, an American named Ellison (Larry Ellison) changed the rules of the game. Mr. Ellison, the founder of Oracle, the Oracle company founded in Ceo,1977, started with a database product, and in the 20 years since then developed into a global software company that provides database and middleware products. Mr. Ellison was not content, and Oracle began dabbling in commercial applications and spent tens of billions of of dollars in a short period of time to complete a series of large mergers and acquisitions that changed the competitive landscape of commercial applications and eventually led to duopoly competition. In the first five years of this century, Oracle has been aggressive, winning leading companies in business applications such as PeopleSoft, BEA, Siebel system, and a high-profile release of the "Out of SAP" competition strategy to attract SAP customers. At that time SAP was certainly uneasy, and the German-style prudence determined that it would not participate in the industry bid with the same ferocity. Whether it was one of SAP's founders, Hasso Plattner, or former CEO Kong Hanning (Henning Kagermann) or Lee Ai (Leo apotheker), in public, it was always ironic to see Oracle's expansion as "nouveau riche", claiming that Endogenous organic growth will eventually prevail. SAP is worried about another two threat factors. Over the past 10 years, the disruptive changes in computing and communications technology and the explosive growth of information have spawned two trends: cloud-and mobile-survival, the current popular cloud computing and mobile apps. For SAP, who specializes in providing preset software, how to change the way software services are delivered and traded so as to meet the demand and mobility needs of enterprise customers has become another major challenge. SAP, which emphasizes organic growth, finally invested $6.8 billion and 5.8 billion dollars respectively in 2007 and 2010, acquiring business object and Sybase, which provides business intelligence analytics software, which is a software company with databases and mobile solutions. To conform to the required SaaS (softThe trend of business ByDesign products was repeatedly postponed until the German company appointed two non-German joint CEO McDermott (Bill McDermott) and Snabe (Jim Hagemann Snabe) in February 2010, 5 months later The product began to be released in four countries in Europe and the United States. McDermott and Snabe are very busy at first, they want to restore shareholder's heart, after the financial crisis, SAP experienced an unsatisfactory fiscal year 2009, not according to International GAAP (NON-GAAP) Total revenue fell by about 9% Year-on-year, and operating margins also slightly lower; They want to come up with a clearer transition strategy to address the challenges posed by cloud computing and mobile technology, and the intellectual property lawsuits filed by Oracle in 2007 are not yet closed. How will the two co-CEOs, in the midst of these challenges, plan to expand the scale of their business to a radical development? Facing this reporter, they answer. Mergers and acquisitions why we want to make the market bigger than 220 billion dollars. The fastest growing segment of the market is the memory segmentation market and the database analysis, as well as on-demand and mobile application markets, and mergers can help us achieve our goals as quickly as possible: "21st century"-your recent mergers and acquisitions are very aggressive. McDermott: Currently, SAP is involved in a total market size of 110 billion dollars. After Snabe and I became co-CEO, we wanted to make the market a big one, allowing SAP to participate in a market of $220 billion trillion. The fastest growing segments of the market are the memory computing segment and database analysis, as well as on-demand and mobile application markets. That's why we're buying Sybase, and using Sybase's experience to become the world's first in mobile apps is more effective. "21st century": Sybase is after business object, SAP launched another large acquisition, the amount of about 5.8 billion dollars. In this merger, how did you and John (Sybase founder Chen) reach a specific takeover intent? McDermott: Mr. Chen's Sybase company has been a friend of SAP, and for a long time we've been thinking about how to put our business applications into the mobile environment, and how to put SAP CRM (Customer relationship management software) into a mobile environment. Jim (Snabe) and I have all seen the big trend of moving new devices, such as the ipad and BlackBerry, and asking us to take a new strategic step. I have to stress that mergers are strategic to both sides, and it's a winning decision. Because SAP has a plan to increase the market size of SAP by one times. We want to be able to help our users and make their business more mobile, the vision of the company, the vision of Chen and Sybase, and the strength of their company. "21st century": the most important asset of SybaseIs the mobile technology solution and database, the next SAP in the integration, in the sale of commercial software to customers, it is possible to focus on recommending customers to adopt Sybase database instead of competitors? McDermott: We offer our customers the opportunity to choose. Sybase is part of SAP, and of course we should combine the best engineers and technology from two companies to bring the best value choices to our customers. We will not let the customer have no other choice. On the contrary, we think that more meta ecological environment is good for customers. Chen: I'll Add. Everyone knows that I have been managing Sybase for some time, and emotionally, I certainly hope that we can all choose our products. But one thing to be aware of is what customer needs are, not what we need. Snabe: Our focus is not on hardware, but our customers have more choices when choosing hardware. So we're going to make the best infrastructure available to our customers. Today, the global IT industry has made great strides in hardware technology. This gives us an unprecedented opportunity to analyze more data, hundreds of times times and thousands of times times faster than before. The amount of data today will grow by one times every 18 months, and companies will react quickly to the market. We develop software applications that enable customers to take full advantage of the advances in hardware technology, and of course our focus is on applications. We are already a leader in data analysis. With this memory technology, we can reach a higher peak. Mobile, cloud computing, memory computing This is the three major technological trends that we believe will lead the future. In particular, mobile technology, for us, is the customer's existing content and ability to add mobile components, for customers, is to find a new way to use their existing application of 21st century: What is your most valued technology development trend? Snabe: We believe that the following three trends in technology will lead the future. The first is the mobile technology mentioned earlier, so far, no one has been able to apply business applications to mobile terminals. The second is to talk a lot about "cloud computing". By the end of July, we had just announced a new SAP cloud computing product--SAP Business ByDesign, which was deployed on demand for small and medium sized enterprises. The third area is breakthrough computing, which is memory computing. Memory calculation is equivalent to moving our data from the traditional database schema to the mainframe, so that we can do a lot of data processing in a very short time. Sometimes the processing time for massive amounts of data may only be within a second. I think SAP has its own core technology in these three areas. "21st century": Gartner, a market research firm, predicted that mobile terminals would be more than 90% in 2014, and I don't know how you analyze and predict the impact of mobility on business applications. What types of business applications are more likely to be popular on mobile platforms? Snabe: We agree with GArtner this prediction. Mobile devices have become the most commonly used tool for obtaining information. Personally, since having a BlackBerry and having an ipad, it seems like the PC is no longer that important. This trend is rapidly rising in the Asia-Pacific region, including China, so most of our current mobile solutions have mobile applications. The acquisition itself is an important step for SAP, which will provide unlimited opportunities for innovation, as companies can keep in touch with employees, customers, and even customers ' customers through mobile devices, providing them with real-time, needed data. I think the apps on the mobile platform are the first to be more suitable for people who are more mobile, such as salespeople and service people, because their jobs are often in the process of moving. For business managers, they need real-time data or situation analysis, and a timely grasp of the operation of the business, performance and effectiveness of the situation. There are also a few portable to mobile terminals are relatively simple and basic applications, such as access to authorization and approval, which can be implemented through the mobile, may also be the user prefers an application. In the future, we will see some new innovations that will enable our users to reach out to their customers, their customers, and ultimately to each end consumer. "21st century": what you've just talked about is more like the use of CRM. The traditional software suite for SAP is a product similar to that of ERP, so what happens to the changes they move to the mobile platform? McDermott: First we extend ERP further to business intelligence and Business Analytics, and we have the ability to deliver information in real time, which helps us move these capabilities to the mobile environment. Here I have two examples, one application is military defense, they use mobile devices for identity recognition, collaboration office. Another is in the healthcare industry, where patients get their condition monitored in real time through mobile solutions and use mobile phones to access telemedicine services. So the whole big situation is shifting to the moving world. We understand and master the processes of these businesses, and we have the ability to control the things that are moved. Snabe: When it comes to moving environments, it's more about adding moving ingredients to what customers already have, and to customers, finding a new way to use their existing apps. Platform strategy our platform not only provides mobile experience and experience to existing customers, and I'm open to other app developers, which will allow you to see a faster, more wide-ranging innovation, "21st Century": Jim mentioned that the merger of Sybase and SAP would have a huge impact on the ecosystem, But there is no concrete way to make a huge impact on ecosystems. Does this mean that future industry competition will change? For example, industry competition is beginning to become full value chain competition, and each company will gradually have a full product from data to middleware to commercial application software,At least you have this development situation. Snabe: We are now focusing on the implementation of SAP software. Now Sybase will put their mobile platforms on the SAP platform, which gives us the opportunity to create mobile apps throughout the mobile environment. Now they can download some apps by using SAP products. On the basis of the SAP platform, some local application providers can also create their own mobile applications for end users to consume. This model is a huge opportunity for the market, that is, not only sap to provide customers with mobile experience and experience, while our platform will be open to other application developers, for their customers also bring new applications. This will have a huge impact on the industry as a whole, and we will see faster, more wide-ranging innovations, especially in countries like China. We think there are two kinds of trends in integration. The first is that some people think that all parts should be integrated, from software to hardware. But we think that in terms of hardware, they will peel out and then virtualize it into the cloud, and the database will be changed from the hard disk to the memory. "21st century": you talked about the platform just now. Now basically the software industry, even say IT companies are talking about the platform, in the business application software industry, SAP platform strategic advantages where? McDermott: I think what distinguishes us from other companies is that we look at the entire ecosystem and allow partners to implement the multiplier effect on the SAP platform. Our entire system is an integrated system. Through engineering capabilities, we associate part of the process with other parts, and, of course, through mergers and acquisitions. Snabe: We also have an advantage in our coherence and consistency. We provide a holistic solution to all business processes and data, which means that if you can achieve consistency and consistency within the core, you can become very flexible on both the platform and the bottom.