Softwar or hard? Business software.(Oracle versus SAP)

Economist (US), The, March, 2005

SAP, the world's leading business software firm, is on the defensive

CALL it the platform wars. A battle has broken out among the firms that supply software to large businesses. These firms are invading each others' markets and fighting over acquisitions. At stake is nothing less than whose technology will become the underlying infrastructure for modern business computing.

This week, after a bidding war, Oracle outbid SAP, a German software firm, to acquire Retek, which supplies software to the retail industry, for around $670m. The sum is paltry, but the deal is highly symbolic. It highlights the challenge that both companies face in order to grow. Both SAP and Oracle dominate the market for enterprise computing, but in different parts of it. SAP is...

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