We will continue to fight with Microsoft in the mid-market, Kagermann said in a press conference during SAP’s European Sapphire user conference in Copenhagen, Denmark this week.
Kagermann’s comments followed on the heels of a joint development initiative announced between SAP and Microsoft called Mendocino, that will link both companies’ core software applications at the enterprise and desktop levels.
Kagermann acknowledges it will be a challenging balancing act for Waldorf-based SAP because of the non exclusive nature of the partnership which also allows Microsoft to develop similar competitive products with other vendors.
We’re going to [jointly] deliver a solution that customers have requested. But we’re also going to compete in the mid-market, Kagermann said. He added that SAP has no intention of toning down its strong focus on this market segment despite signing the deal with Microsoft.
During the press conference, Kagermann also brushed off speculation that Mendocino could preclude a merger between the two software giants with a wry smile. He told reporters that this issue has been laid to rest.
Its fair to say that Microsoft and SAP have recently had an on-off relationship.
In 2003, Microsoft admitted it had initially entered into merger discussions with the German software maker. But nothing resulted as Microsoft ultimately decided integration would be tricky. Last year, in the middle of Oracle’s prolonged takeover battle of PeopleSoft, both companies issued statements saying they were no longer interested in a merger.
Microsoft and SAP plan to deliver Mendocino as a jointly developed product that will link SAP’s business applications (mySAP ERP) suite to Microsoft’s desktop-based Office 2003 products. The integration is expected later this year.
Both companies will also engage in joint marketing and support around the offering. But the relationship falls short of reselling other products in each company’s application portfolio.
