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SAP Hits the Product Transition Wall - What Next?
The sudden departure of its CEO and other senior executives are symptoms of a larger problem at SAP - namely the lack of a clear strategic direction. In MGI's view, SAP is at a crossroads unlike anything it has faced in the recent past, and this crisis comes at a time when the company faces a deficit in an area that used to be its core strength - the depth of its management team. This research note explores SAP's challenges, risks, and opportunities, and outlines possible scenario outcomes and what they mean for investors, partners, competitors, and customers. ... Full story
i2 - All Dressed Up
After a tumultuous year, i2 Technologies is primed for a significant event. For all the drama of the past 24 months of i2 Technologies’ history, the next 12 months may prove even more exciting. While its MGI Index (MGI-X) and MGI Change Vector (MGI-CV) scores remain unimpressive and the first quarter results failed to stop the erosion of the business, the path to selling the business has never been so clear, and the list of potential suitors says as much about the supply chain and logistics software sector as it does about i2. In spite of its broken deal with JDA Software (NASDAQ: JDAS; MGI-X: 918), we see an increasing probability of an exit transaction for ITWO in the 2009 to early 2010 timeframe. ... Full story
Oracle Acquires Sun Microsystems: Strategic Impact at a Tactical Price
Oracle's acquisition of Sun (Nasdaq: JAVA) comes at a tactical price but carries with it major strategic benefits to Oracle as it stands to reap benefits of a more vertically integrated stack. The accretive nature of Oracle's bid for Sun is underscored by the efficiency of Oracle's business model. When Oracle completes this deal, it will be strategically positioned vis a vis both IBM and HP, and will be able to compete more effectively for centrally controlled IT budgets. This transaction puts significant distance between Oracle and SAP, as Oracle will no longer be just a software company.
Applications Software Vendors Benchmark - The Strong Get Stronger and the Weak Get Weaker
This report is a comprehensive look at 75 publicly held applications software companies that range in size from micro-cap firms to the leading large capitalization software companies such as Microsoft, Oracle and SAP. Using the MGI scores the study highlights key trends in financial performance of the sector – and whether the overall sector is strengthening or weakening, and which companies are improving or deteriorating. As the title of the report states generally the poor economic backdrop accentuated the already sharp differences between the winners and losers. The report also highlights the exceptions to the trend, as well as discussing the outlook for the sector overall. ... Full story
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$246 million Jury Verdict Against i2 and JDA Software Highlights Hidden Risks
Today's announcement of the $246 million jury verdict against i2/JDA Software highlights the hidden legal risks that are often poorly understood by technology investors and management. The size of this jury award is unprecedented in the software industry and will likely have broad ramifications beyond the scope of JDA Software as a mid-size provider of enterprise applications. ... Full story