Google is Switching from Oracle to SAP
SAP has won Google as a new major customer for its accounting.
For SAP it is a prestigious success in competition with arch rival Oracle, from which the Internet giant is switching to the Germans. A Google spokesman confirmed the project on Tuesday night for the US broadcaster CNBC. According to an internal email, the change is scheduled for May. The changeover required months of intensive preparatory work, it said, citing an informed person.
The shares of the software manufacturer SAP initially benefited from a media report on Tuesday about a prestigious order from the Internet company Google. The information was later confirmed by a Google employee.
Most recently, the SAP papers went up by almost 2 percent to 108.90 euros. For a short time it even climbed to just below the resistance at 110 euros from late January and early February. Should it be overcome, the range for further price gains could be around 122 to 123 euros in the medium term. The SAP paper sank below this level in October after the group cut its targets due to Corona and the costs of aligning with the cloud business.
The trigger for the current price jump was initially a CNBC report on Monday. Citing an internal email to Google employees, the US business broadcaster reported that the core financial systems of Google and the parent company Alphabet would be switched from Oracle to SAP software in May. This information has now been confirmed by a Goodle employee.
“Google’s announcement is a nice public victory for SAP,” commented JPMorgan analyst Stacy Pollard. “Google and Oracle have a number of conflicts,” she said. Among other things, the two so-called “Hyperscaler” competitors in the Infrastructure-as-a-Service (IaaS) sector. Hyperscalers are providers of IT resources based on cloud computing. In addition, Oracle probably refused to certify its database software for the Google Cloud, which was at the expense of Google’s customers, as Pollard wrote.
The JPMorgan expert also referred to a judicial defeat of Oracle the previous day. In a landmark judgment for the software industry, the US Supreme Court decided a copyright dispute over the Android smartphone system in favor of Google. The majority of the judges ruled that the use of interfaces was justified as “fair use”. This defeated the software company Oracle, which had demanded around 9 billion dollars in compensation from Google for the use of these interfaces – Java software codes.
Google is Switching from Oracle to SAP - /10