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BREMEN, Germany, Sept 28 (Reuters) - SAP (SAPG.DE), the world's biggest maker of business software, warned that the economic crisis was not over but said it was well placed to sail through tough times because it had cut jobs early on.
"You could feel the impact directly on September 15 and how it spread since," Chief Executive Leo Apotheker said at an SAP user event in Bremen on Monday, referring to mid-September of last year when U.S. investment bank Lehman Brothers collapsed.
Walldorf, Germany-based SAP told investors last October that business suddenly slumped in the last two weeks of its third quarter, which ended Sept. 30, 2008.
Early this year, the company said it would cut some 3,000 jobs -- a first in the company's history.
"I don't think it (the crisis) is over yet...and when it is, the world will be a different place," Apotheker said.
But SAP, which competes with U.S. companies Oracle (ORCL.O) and Microsoft (MSFT.O), would come out strong because it had reacted quickly, Apotheker said.
Oracle, SAP's fiercest rival, reported disappointing quarterly results on Sept. 16, dashing hopes that corporate spending was rebounding. [ID:nN16146835]
Apotheker, who refuses to call Oracle by name and hardly ever provides market share figures, said SAP's market share was 32.8 percent compared with Oracle's 17.5 and Microsoft's 3.5 percent. SAP is due to publish third quarter earnings on Oct. 29. (Reporting by Nicola Leske; Editing by David Cowell).
The BSE IT index had outperformed the market over the past one month till 25 September 2009, rising 6.76% as compared to the Sensex 6.40% rise. It outperformed the market in past one quarter, soaring 35.51% as against 16.36% rise in the Sensex.
Patni Computer (up 5.38%), Hexaware Technologies (up 5.45%), MphasiS (up 4.02%), TCS (up 3.82%), Oracle Financial Services (up 3.49%), Wipro (up 2.44%), Infosys Technologies (up 1.91%), Rolta India (up 1.82%), HCL Technologies (up 0.51%), NIIT Technologies (up 0.49%), and Mahindra Satyam (up 0.17%), rose.
US is the biggest market for Indian IT firms. On the deals front, Johnson & Johnson said it bought 18.1% of Crucell for $442.7 million. Xerox agreed to pay $6.4 billion for acquiring outsourcing and information-services company Affiliated Computer Services. And Abbott Laboratories said it will buy the pharmaceutical business of Belgium's Solvay for as much as $7 billion in a deal that would expand its presence in emerging markets.
Although the worldwide security software market is affected by the economic downturn, the growth will continue to be strong in 2009 as security remains a critical area where drastic cuts cannot be afforded,” said Ruggero Contu, principal research analyst at Gartner.
“In the medium term, the greatest growth opportunities will come from software as a service (SaaS), appliance based offering and small and medium businesses (SMBs), which are in security catch-up mode compared with large companies and therefore spend a higher percentage of their budgets on security” he said.
In 2009, consumer security will remain the largest segment (in terms of total software revenue) in the security software market, representing 25 per cent of the total market. Gartner estimates it will account for $3.6 billion, growing 4 per cent in 2009.
The worldwide security software market will total $14.5 billion in 2009, an 8 per cent increase from 2008, according to Gartner Inc, an information technology research and advisory company. In 2008, it grew at 19 per cent, and Gartner anticipates the market to grow 13 per cent in 2010 as revenue will total $16.3 billion.
The enterprise security software market formed by a number of segments such as endpoint protection platform, email security boundary and user provisioning is predicted to account for $10.9 billion, reaching 9 per cent growth in 2009.
“The security software market in 2008 was characterised by a high level of consolidation with the examples of Mc Afee purchasing Secure Computing, Symantec and Sophos acquiring MessageLabs and Ultimaco, respectively. This is a sector where further consolidation is expected in the near future,” said Contu.
“End-users are gradually moving to better-integrated multi-products, particularly in areas such as endpoint security and identity and access management. Vendors offering good integration in an already established and trusted technology partnership will be best-placed for success, as buyers prefer to deal with two or more vendors that already trust each other’s software and practices” he added.
Microsoft has released its free computer security package to the public.
From 29 September, Windows users will be able to download the software from Microsoft's Security Essentials website.
The free software gives basic protection against viruses, trojans, rootkits, and spyware.
The Essentials software is Microsoft's second try at making an own-brand security package.
Prior to release a beta version of Security Essentials software, codenamed Morro, has been available to users in the US, China, Brazil, and Israel.
Microsoft said the software would be available to anyone who wanted to use it and downloading it would not involve registering with the software firm or having a limit on the amount of time it could be used for.
"Consumers have told us that they want the protection of real-time security software, but that they are confused by trials and renewals and concerned about performance and as a result, too many are unprotected" said Amy Barzdukas, general manager for consumer security at Microsoft in a statement.
The only restriction on use is that it has to be installed on a "genuine" Windows PC - one whose copy of its operating system has been verified by Microsoft.
In the free software market Microsoft faces competition from many others including AVG, Alwil Avast, Avira Antivir and Comodo.
The free software runs on Windows XP, Vista and will also be available for Windows 7 when it is released in late October.
Updates will be provided automatically to those who install the software.
Prior to working on Security Essentials, Microsoft offered its Windows Live OneCare paid security software but this failed to win a significant user base in the highly competitive consumer market. This software was withdrawn in mid-2009.
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