Outsource Issue 22 - (Page 10)
This issue: gsf collapses; sap pay oracle; new saTs for africa
news & comment
Oracle CEO Larry Ellison (left) arrives at to testify in Oracle’s trial against archrival SAP
sAP to pay oracle $1.3bn
Enterprise software behemoth SAP has been ordered to pay Oracle, its leading rival, some $1.3bn after a court in California found in favour of the latter in a case relating to the theft of documents and software by SAPowned TomorrowNow. The court heard that the now-defunct SAP subsidiary had illegally obtained customer records and related technology which it then used to attract Oracle’s customers. SAP had already conceded that TomorrowNow had acted wrongfully, but had offered to settle the case for a sum (around $40m) vastly inferior to the eventual award – believed to be the largest-ever in a copyright infringement case. Following the November 23 announcement, Oracle representatives were keen to publicise their belief that the cash award was less important than the justification of their own argument and the exposure of serious faults within SAP’s practices. “For more than three years, SAP stole thousands of copies of Oracle software and then resold that software and related services to Oracle’s own customers… Most senior executives were aware of the illegal activity from the very beginning.” said Oracle’s co-president Safra Catz after news of the award was released. SAP now face a tough choice: at presstime the company was weighing up the possible pros and cons of appealing the decision: “We are, of course, disappointed by this verdict and will pursue all available options, including post-trial motions and appeal if necessary,” the company said in a statement. While a reduction in damages would obviously benefit SAP the potential , extra reputational costs of an extended court battle following what has already been an extremely injurious event could convince Europe’s largest software company to cut its losses.
IT INDUSTRY
commenTary
Laura ShieLdS, journaLiSt and media conSuLtant
“Oracle’s courtroom triumph over SAP is the culmination of a series of increasingly unpleasant clashes, which have seen an already fraught relationship become downright poisonous. At $1.3bn, the cost of to SAP should not be underestimated. But the lingering damage is to reputations as opposed to bottom lines. Although appealing to reduce the fine, SAP has already said there will be no impact on the company’s full year numbers. But serious questions remain over other strategic errors - including and the sudden ousting of CEO Leop Apotheker. But anyone predicting an exodus of aggrieved SAP clients making their way to Oracle’s pristine shores should think again. Admittedly the court result was a win for Oracle and its chief executive, Larry Ellison. However, some analysts warn that Oracle’s increasingly vengeful behaviour during the court case could end up creating sympathy for SAP customers.”
SAP was founded in 1972 by a group of five former IBM employees in Mannheim, Germany. One of them, Hasso Plattner, is still chairman of the firm’s Supervisory Board.
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Table of Contents for the Digital Edition of Outsource Issue 22
Outsource Issue 22
Table of Contents
Shutting the Door?
Q&A: Deborah Kops
Colombia
LPO
Editorial Board Roundtable
Head-to-Head
HR Trends
Long Live AMS!
The Provider Perspective
Platforms Make Sense in the Cloud!
NOA Pathway
Case Study: Kingâs College Hospital
Egypt
Silver Lining
Roundtable Write-Up
Case Study: Nokia & Hyphen
Alan Leaman
Leah Cooper
Kay Formanek
Paul Awcock
News & Comment
The Legal View
NOA Roundup
Online Roundup
Letter to the CEO
Letters to the Editor
Sourcebites
Inside Source
The Last Word
Outsource Issue 22
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