SAP Watch

Jun 6 2008   12:10PM GMT

SAP fails to settle with Oracle

JackDanahy Jack Danahy Profile: JackDanahy

SAP and Oracle, embroiled in a bitter battle over SAP-owned TomorrowNow’s unit’s illegal downloading of Oracle support materials and other information (like software code), have failed to settle their dispute in a May 29 mediation session. This means that SAP and Oracle will continue on their course towards violent litigation over this matter.

According to SAP co-CEO Henning Kagermann, the case isn’t expected to open until early 2010. That means at least another year and a half of bad publicity for SAP, and the possibility of bigger embarrassments in court. It seems worthwhile to ask why SAP doesn’t try to settle before then, if only in the interest of quashing the publicity. SAP has already prepared 10 million Euros for the legal struggle, and even one lost contract because of this lawsuit could mean another 15-20 million Euros that SAP gets to keep in its pocket.

While we’re on the subject of SAP’s legal issues, investment writer Dennis Byron caught an interesting fact about Waste Management, the company that claims SAP sold it software that didn’t work. In its last 10-Q, Waste Management noted that, “If we decide to abandon the SAP software, the abandonment would result in a charge of between 45 and 55 million dollars.” That vitiates Waste Management’s claim that the SAP software it bought simply didn’t work.

Demir Barlas, Site Editor

5  Comments on this Post

 
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  • Mike
    Your reasoning is very much flawed. (1) just because a company does not want to settle is not an indication of anything other than confidence that charges are bogus (2) many customers around the world use SAP, many have customized it to do things SAP was not made to do and it appears things are working just fine. WM is probably just looking for SAP to "bail them out" with some free consulting. You should know that with projects, especially IT, it is not just one party's fault.
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  • Viv
    Mike, I think you keep the stock of SAP. As per me, If Oracle settle this with money then it means Oracle filed case for money only. It is something, SAP has Stolen stuff from ORACLE it means in some way SAP Management agreed for that just for few Bucks. For WM i believe they believe on trust. Which SAP has broken and lied while implementing the Product. As Vendor knows more then customer that will this be best fit for customer or not. Here again i think in this dirty market of Software, SAP wanted to earn few more bucks then actually helping to customer(WM).
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  • Arun
    Commenting against a software giant in this way seems like here are some again to quash the SAP completely. Lets say that SAP wanna earn few bucks n they implemeted the software at such a big cost eventually means that during various phases the customer (WM) is more than happy to allow for furthur processes. Now its a irony that today's IT market having that bugs follow you even if you feel like they are ousted eventually finding them at some phase or other, but that does not mean that software is faulty. I believe there should be the software law followed that if there is an issue resolve it whatever it takes finally. About ORACLE issue im still confused why oracle is awaiting for so long if they feel like they are correct. It is just they want to reduce the SAP potential in market by bringing bad name.
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  • JackDanahy
    Arun: it is not Oracle that is dragging their feet on the court date. It is SAP. Which indicates their guilt.
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  • JackDanahy
    Hi According to me i can say that there might be a fault in the software by mistake but it doesnt mean that SAP frauded WM.As per WM if its true that really SAP frauded them how tens of thousands of customers are getting benifited by SAP.Everything is going smooth from customers point of view. I assume that all this is happening only to bring SAP' business down in the market since SAP is world's largest company.(Why dont we think that WM only giving this publicity to make their business down. Who knows whats the fact.) Regards Sireesha
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