) stock rose almost 4% following the launch of two new products by
the company - Sales OnDemand, a cloud based CRM application for
sales force automation with a social layer on top, and Sybase IQ
15.3, a relational database system used by many organizations
around the world. SAP competes with heavyweights like Oracle (
), Salesforce.com (
) and Microsoft (
) in the database and cloud computing business. CRM software
accounts for almost
of the $64 Trefis price estimate for SAP
If SAP is able to increase its market share of the CRM software
market to 24% by the end of the forecasting period, it could lead
to an upside of about 5% to the
current Trefis price estimate of $64 for SAP stock
Impact of Sales OnDemand Launch on SAP Stock
SAP currently has a 21% share in the CRM market which is
expected to decrease to 18% by the end of the forecasting period.
Sales OnDemand will succeed the earlier CRM offering by SAP - CRM
OnDemand. Considering the positive initial reviews, if the Sales
OnDemand application turns out to be a hit, SAP could end up with a
greater market share by the end of the forecasting period.
Impact of Sybase 15.3 Launch on SAP Stock
The launch of Sybase 15.3 could also have played a small part in
the 4% price jump in SAP stock. Sybase 15.3 is a robust offering
which offers many improvements and better performance than its
predecessor. It comes with PlexQ, a concurrent grid framework and
distributed query processing support which should improve database
performance. It also offers an improved DBA interface and better
integrates business analytics with the application workflow.
Looking forward, SAP's revenues from Sybase are expected to grow
to $1.8 billion by the end of the forecasting period. However, the
Sybase division accounts for only about 8% of the Trefis price
estimate, so this launch may not have much of an impact on it.