Archive for November, 2010

SAP still faces price and licensing issues

November 25th, 2010

The anger that exploded among users when SAP announced plans to impose a single, more expensive maintenance plan for all customers seems to have subsided a little in the light of a more conciliatory approach. Apparently, SAP has a new found willingness to listen, share and work more collaboratively with customers, particularly with regard to product roadmaps and establishing a two-way conversation with end-users.

Despite this progress, however, pricing and licensing remains a source of dissatisfaction for many of SAP’s customers. Without greater clarity and transparency around pricing, SAP could also run into problems with adoption of their new off-premise on-demand hybrid solution. Many suppliers have used complex pricing mechanisms to muddy their pricing models in order to confuse users and to enable higher costs to be charged. Let’s hope SAP really is listening this time as their current and historic pricing models have been unusually convoluted.

Microsoft juggernaut powers on

November 15th, 2010

Microsoft has seen net income increases 51% compared to same quarter prior year. It has reported revenue of $16.20bn for the quarter ended 30 September 2010, an increase of 25% compared to $12.92bn in the same period of the prior year. The increase in sales has been attributed to the robust consumer and corporate demands for the company’s Windows, Office and other products.

Operating income of $7.12b has been reported in the third quarter, which is an increase of 59% compared to $4.48bn in the same quarter prior year.

The deferred revenue of $1.47bn in the prior year was related to the Windows 7 Upgrade Option programme and sales of Windows 7 to OEMs and retailers before general availability in October 2009.

Without the deferral in the prior year, first-quarter growth rates for revenue and operating income were 13% and 20%, and growth in net income and earnings per share were 16% and 19%, respectively.

Microsoft chief financial officer Peter Klein said this was an exceptional quarter, combining solid enterprise growth and continued strong consumer demand for Office 2010, Windows 7, and Xbox 360 consoles and games.

Microsoft chief operating officer Kevin Turner said the company is seeing improved business demand and adoption, and its enterprise agreement rates were strong, reflecting business commitment to Windows 7, Office 2010, and server and database products.

I guess Open Office and Google Apps still have some way to go before they impact the Microsoft juggernaut.

BMC software profits on the rise

November 8th, 2010

Cloud interest sends BMC profits up 40%. Business software firm BMC beat Wall Street expectations during its second quarter, recording a 9% rise in revenue and a 40% jump in profits. It’s another sign that the IT market is growing again and spending is on the up.

The firm said that demand for cloud computing and hybrid data centres pushed BMC to its impressive figures. Revenue came in at $502.3m, up 8.8% from $461.8m a year ago. Revenue was boosted by a 37% increase in professional services and a near-20% rise is revenue from licences.

“Cloud computing is fundamentally changing the way customers are thinking about IT. BMC’s strong performance shows that we understand how to make cloud computing a reality today,” said BMC CEO Bob Beauchamp.

Bob; you are right. It’s only taken you how many years to catch on with the industry trend?