SAP targets small businesses with new offering
With Business One, the company is providing a solution that bundles many functions into a single package.
The company has a majority share of the enterprise resource planning (ERP) software market, where it competes primarily with Microsoft (MSFT), Oracle (ORCL) and Salesforce.com (CRM). We expect its market share to decline marginally through the forecast period, due to increasing competition. (Microsoft owns and publishes Top Stocks, and MSN Money site.)
SAP focuses on its forte: ERP
SAP has traditionally focused on ERP offerings for enterprises, but has been looking at other markets to increase sales. It recently launched a new version of Business ByDesign -- an on-demand, cloud-based product -- in a bid to capitalize on the rapidly-expanding market for cloud software. Oracle and Microsoft have also launched cloud versions of their enterprise applications in the past year.
With Business One, SAP is focusing on small and medium-sized businesses with an easy-to-deploy solution that bundles resource planning, customer relationship software, inventory management, reporting, accounting and financial management in a single package.
With Business One, Business ByDesign, and its traditional ERP offering, SAP now offers ERP solutions in all forms and for any company size.
Enterprise resource planning software accounts for around 38% of our $63 Trefis price estimate for SAP, which stands nearly 2% above its current market price.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The market's cheap money addiction is laid bare. No one knows how it will end.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.