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Tuesday, July 03, 2007

SAP Sued By Oracle And SAP Admits Wrongdoings

Long long story cut short:

The roots of the down-on-the-ground grappling between SAP, of Waldorff, Germany, and Oracle run deep. While steadfast partners on the database front—a majority of SAP's customers run their software on Oracle's database technology—the relationship soured when Oracle embarked on a hostile takeover bid for PeopleSoft, the world's second largest business applications developer, in 2004. When Oracle succeeded and acquired PeopleSoft in late 2005 after a bitter battle, SAP acquired TomorrowNow, which provides support for Oracle's applications (not only PeopleSoft, but also JD Edwards and Siebel, which Oracle also acquired).

With the TomorrowNow acquisition, SAP started its "Safe Passage" program that provides third-party support for Oracle applications, at about 50 cents on the dollar.

As soon as SAP acquired TomorrowNow, the gloves between the two companies really came off. Oracle CEO Larry Ellison vowed to get even.

The legal wrangling officially started in March when Oracle, of Redwood Shores, Calif., filed a complaint against SAP claiming "corporate theft on a grand scale." Oracle alleged that SAP, through its third-party support organization, TomorrowNow, hacked into Oracle's applications support systems and illegally downloaded secret product information. In June, Oracle added copyright infringement and breach of contract claims to the suit.

SAP Prepares Response to Oracle Lawsuit,1759,2154139,00.asp?kc=EWRSS03119TX1K0000594

SAP Admits Wrongdoing in Oracle Document Theft Case,1759,2154349,00.asp?kc=EWRSS03119TX1K0000594

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