This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SAP, Sybase to Crack Smartphone Market


SAP (SAP - Get Report) recently acquired Sybase (SY) for $5.8 billion. Sybase, which primarily derives revenue by selling database software, also sells software for mobile phones on which businesses can deploy software applications. SAP, on the other hand, develops software applications for things like resource management and customer relationship management.

We believe this acquisition will benefit SAP's market share in the applications software market as it provides SAP an opportunity to satisfy business needs for real-time, mobile access to its business applications. By leveraging Sybase, SAP can better deliver its business applications to smartphones like the iPhone and BlackBerry.

Such capabilities will make SAP's applications more appealing to businesses and help the company to slow expected declines its software application market share.

Sybase Could Benefit SAP's Applications Market Share

We expect SAP's share to decline in two of the most important software applications markets: Enterprise Resource Planning (ERP) software and Customer Relationship Management (CRM) software. ERP and CRM software constitutes more than half of the $50 Trefis price estimate for SAP's stock.

ERP software

ERP software implementation helps companies integrate different systems with no common interface. For example, in a bank, if the credit card and the savings account system are two different systems, it could create potential reconciliation issues for the bank. ERP helps integrate these systems and solves these issues.

CRM software

CRM software helps companies provide a clear perspective of who their customers are, and what are their requirements. This results in increased customer satisfaction and increased sales for companies.

Sybase Makes SAP's Apps More Appealing

We believe that SAP will continue to lose share in the ERP and CRM market due to increasing competition. We expect SAP to lose some share in the ERP market to smaller players like Infor and Sage, and we forecast a decline from about 26% share today to 24% over our forecast period. Similarly, we expect SAP's share in the CRM market to decline from about 22% to 19% as a result of competition from players like (CRM), Microsoft (MSFT) and Oracle (ORCL).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SAP $66.57 0.67%
AAPL $110.37 -1.75%
FB $88.15 -1.94%
GOOG $606.25 -1.32%
TSLA $245.57 -0.86%


Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs