Monday, October 20, 2014
Inquirer Daily News

SAP's HANA database aims at Oracle

"Pent-up demand" will boost sales, but it's "not a near-term threat" to rivals, writes Janney's Yun Kim

SAP's HANA database aims at Oracle

SAP AG, the German business software giant whose US arm is based in Newtown Square, has started selling "a sizeable catalist to the company's business" -- the HANA in-memory database program tied to SAP Business Suite -- reports Yun Kim, software analyst at Janney Capital Markets in Philadelphia.

Kim told investors he's called corporate software users and found "a pent-up demand for HANA," which should boost SAP sales "much like how Exadata provided a sizeable sales lift" for SAP rival Oracle.

But SAP's new products are "not a near-term threat" to Oracle's core database business, and "the near-term impact will be minimal" since it's expensive to switch, Kim added. Rather, HANA strengthens SAP's position as a long-term competitor, Kim argues. He says SAP currently trades at a discount -- just 18X 2013 expected earnings, bleow the industry average of 20X; he argues it's underpriced.

Joseph N. DiStefano
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PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
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