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