SAP Enhances Customer-Focused Strategy with Innovation


SAP ( SAP ) core business is primed to accelerate. A recent Barron's article highlighted Morgan Stanley's SAP upgrade to 'Overweight' on this premise. We also discussed this topic in a recent Trefis note and highlighted how new, innovative products will help push SAP's growth in the coming years (see SAP Looks to Tap New Markets for Growth .) Further we explained how SAP's customer-focused strategy to provide solutions to customers in the on-premise, on-demand and on-device has started to gain broader market acceptance. This will help the company compete better with Oracle ( ORCL ), Microsoft ( MSFT ), ( CRM ) and IBM ( IBM ) in the applications software market.

Our price estimate for SAP stock , at $64.85 is largely inline with market price.

SAP Continue to Drive Innovation

One of the most innovative products SAP introduced is the software known as HANA (High Performance Analytic Appliance), which uses a different method of storing and retrieving data by storing it on computer's CPU rather than traditional way of reading and writing on storage disks. HANA leverages in-memory technology, which is technology that speeds up data storage and retrieval to unprecedented speeds. See our earlier note on HANA titled SAP's In-Memory Technology to Shake Up Database Market , in which we discussed how HANA could benefit SAP and compete with Oracle's Exadata machines.

Another product that SAP came out with was Business ByDesign on-demand software. The company believes that Business ByDesign enterprise software solution features a few advantages over products offered by competitors, as other players typically provide a piecemeal solution while SAP's offering is an integrated solution. We discussed about Business ByDesign's growth prospects in our earlier note titled Optimistic Outlook for SAP's On-Demand Market Prospects.

See our full analysis and $64.85 price estimate for SAP

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: CRM , IBM , MSFT , ORCL , SAP



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