As nations battle it out on the fields of Brazil for that elusive world cup title, so are Oracle Corporation (NYSE:ORCL) and SAP AG (ADR) (NYSE:SAP) battling out it on the global business arena. In a recent report, CNBC has analyzed the profiles of Oracle and SAP, which are now shifting their attention more into the cloud as more business continue to seek relevant solutions in this space.
Co-Founded in 1977 by the flamboyant and among the richest people in the world, Larry Ellison, Oracle Corporation (NYSE:ORCL) is a provider of enterprise software as well as computer hardware products and services. Headquartered in Redwood Shores, California, it is considered as the second largest software company in the world after Microsoft Corporation (NASDAQ:MSFT). According to CNBC,” Oracle’s 2013 annual revenue was more than $37 billion”.
Oracle Corporation (NYSE:ORCL) was initially formed to build a database manager for the CIA in a project codenamed ‘Oracle.’ That work later on changed the way businesses do business as it formed the fundamental operations of the company. Nowadays, whenever corporate businesses run into IT problems, they call Oracle as it has proven overtime to be one of the most efficient and reliable IT problems-solver.
Oracle Corporation (NYSE:ORCL)’s programs have essentially simplified inventory or how shipping and supply chains are carried out. Since 2004, the company has specialized on enterprise software mainly tailored towards personal business, this is one of the main platforms where Oracle competes hand in hand with SAP.
The other company, SAP AG (ADR) (NYSE:SAP) was founded in 1972 by five engineers who left International Business Machines Corp. (NYSE:IBM). It is headquartered in Walldorf Germany and its 2013 annual revenue amounted to $22 billion. SAP specializes in developing large data programs for financial accounting that have essentially helped the world move away from punch cards. SAP AG (ADR) (NYSE:SAP), like Oracle, is finding growth by adopting into the cloud and mobile space which continues to offer more opportunities.
The main difference between the two companies lies on the fact that SAP AG (ADR) (NYSE:SAP) has a complex ERP software that integrates various business applications while Oracle Corporation (NYSE:ORCL) on the other hand is an ORDMS that can be used in any enterprise environment.