Although Oracle’s revenue is about 10 times that of ServiceNow and SAP’s revenue is about 8 times that of SAP, ServiceNow’s $90 billion market value is now only half of the two world-class enterprise software companies.
Market value is a huge number. They not only show us what a company is today, but also show what some people think of the company’s development direction.So these seemingly crazy numbers quoted above tell us about these 3 companies Top 10 Cloud Wars: #5 SAP, #6 Oracle with #9 ServiceNow?
#5 SAP
The company’s application and data management solutions play a pivotal role in the global economy. In addition, SAP has just released or is releasing many new products with potential:
Its industry cloud, which will enable it to release new AI and ML functions, thereby providing its hundreds of thousands of customers with more industry-specific insights and functions;
Fully integrate all of its applications into a unified data model and architecture in the near future, making it easier and faster for companies to approach customers and unlock new revenue opportunities; and
In the world where CX has great potential, a newly imagined kit is expected to be released in mid-October.
The market’s valuation of SAP and its long-time rival Oracle is almost identical: about $180 billion. So let’s take a look at the contribution of Larry Ellison and his company to this valuation. (For comparison, Salesforce, ranked third in my Top 10 Cloud Wars, Its market value has skyrocketed recently and is currently about $220 billion.For more information, see The magic of Marc Benioff: 10 key drivers of Salesforce Q2 surge)
#6 Oracle
Over the years, Oracle has been far ahead of SAP in terms of revenue and market value, but in the past 12 to 18 months, SAP has reaped some of Oracle’s revenue-Oracle’s revenue is approximately US$40 billion, and SAP’s revenue is close to 32 billion. U.S. dollars, and market value in 2006.
Founder and Chairman Larry Ellison (Larry Ellison) usually does not talk about the slow growth of the company as a whole, because he said that the unimportant part of Oracle’s business is declining, but the new vibrant part of the company ( That is, Oracle Cloud) is developing rapidly.
Ellison’s company has recently seen its market value increase in accordance with this growth prospect: In addition to the continued advantages of the SaaS business, Oracle has recently begun to talk more and more about the growth of its IaaS business, which has been in the business for many years. Is inactive in a huge market. But now, as more and more global enterprises choose OCI and autonomous databases as the basis of their cloud computing journey, Oracle has huge growth prospects in its cloud product portfolio. The market responded to this.
#9 ServiceNow
Since former SAP CEO Bill McDermott took power a year ago, ServiceNow has been one of the most watched companies, with a market value of nearly 75% since he took office.
McDermott has increased its investment in advanced technology in ServiceNow’s product portfolio, but more importantly, it has greatly reimagined the company’s position and potential in the market. McDermott is not a very successful but mostly unlucky company, but in the middle of the digital “workflow revolution” mentioned ServiceNow and directly implanted it.
His ServiceNow revenue far exceeds its weight, with revenue of $4 billion and a market value of approximately 22.5 times the revenue figure. By positioning ServiceNow as the engine of digital transformation, the interconnected workflow speeds up operations and significantly shortens the time to create value for customers, thereby pushing customer discussions from the IT department to the CEO and C-suite.
Why ServiceNow is everyone’s darling
Well, it certainly won’t hurt the company’s growth in the mid-1930s, and McDermott publicly proposed ServiceNow’s $10 billion road. Moreover, as one of those cloud-native companies that do not have a traditional portfolio of assets to rationalize or confuse while building a world-class cloud product suite, ServiceNow is able to grow at a speed that large companies cannot sustain.
How important is market value?
If you choose an enterprise software vendor, the market value may not be at the top of your priority list. At the same time, they reflect confidence or confidence in the supplier’s future, whether it is good or bad or indifferent.
The reason I choose to check market capitalization occasionally is because they have become so large and so powerful that they provide more evidence that enterprise clouds are clearly seen as the foundation of the digital economy for the next 25 years.
I prefer the name “market value madness” because despite a lot of rational thinking about the market of these companies, it is at least a bit crazy, because the world has never seen such a market.
In the “cloud war”, we will try to check the market value of the market regularly Top 10 Cloud Wars.
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