Because a well-known IT company is switching to SAP’s software in its finance department, the share price of the ERP world market leader rose in the U.S. and Europe. SAP’s lucky charm is Google, and the supposed loser is Oracle.
You can argue about the software quality, but SAP’s knowledge of finance and accounting is impeccable. Some experts even refer to SAP’s software as an accounting program; not disparagingly, but because SAP has by far the best financial accounting and controlling software, but can offer little else.
Since its founding days, SAP has always surrounded itself with leading financial experts. There is no challenge in the infinite field of financial accounting that cannot be solved with its software. From the very beginning, SAP has been confronted with different currencies and tax systems in Europe. A provider that primarily serves only one market thinks, acts, and programs differently. However, thanks to the diverse influences it had to contend with from the very beginning, SAP’s accounting software can be used all around the world now. Losing to SAP, the reigning champion, in a financial accounting dispute is nothing to be sad over. So why is it that SAP’s share price is rising because Google is doing the same thing that thousands of successful corporations have done before it?
Of course, name-dropping to make yourself look better is nothing new – in this case, it’s just confusing. Is Google’s finance department that much larger than the ones of other well-known SAP customers like BASF, Nestle, American Airline, or Ford? Or is SAP really doing so badly that a single contract win against Oracle is already causing the stock price to rise?