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Nov 11, 2010

Oracle and SAP – Show me the MONEY!!

By Suren

Well if you've been a regular reader of this site, you would know that Oracle and SAP have been going at each other now for close to 2 years, with their law suit on the TomorrowNow scandal.

This is where; Oracle said a SAP subsidiary, TomorrowNow, created bogus accounts to get access to walled-off Oracle websites. Once inside, Oracle said, TomorrowNow deployed computer programs that powered through page after page of support documents, "scraping" and saving the contents of those pages as they went (excerpts from ZDNET).

Oracle claims that this corporate espionage has led to ORACLE losing out close to $4 billion in lost sales and support agreement. Well that’s what Larry Ellison claims anyway; however SAP suggests that this would probably just run into a few 100 millions.

This case has been going on for so long now, however the recent developments suggests that a settlement could happen quite soon. Just a few days back the court cut $500M off Oracle's potential damages, so now the figure as per ORACLE would stand at $3.5 billion.

Well, given the recent developments, executives & lawyers suggests that this could end before the end of this year, which means...someone’s going to pay (most probably SAP) and someone’s going to gain whatever the amount (ORACLE and the lawyers on both sides offcourse, who can forget them).

Given all this, the share prices have been reflecting the court drama just a little up to now, however as we get closer to the final decision, it’s likely to fluctuate.

Anyway as far as SAP Consultants are concerned, just continue to code ABAP and configure using SPRO, cause its very unlikely that this could have a major catastrophic effect on the companies already running SAP or the ones who are to implement it, SAP has spun its web too big now, that certain consulting companies themselves can support SAP in the future, maybe they might even come together to form an alliance....you never know!!

I’m open for comments & insights on ssurenlk@msn.com.

Have a nice day!!