Codestone

Category: ERP systems

The profit margins for enterprise resource planning (ERP) systems provider SAP have widened, it has emerged.

According to Trefis, increased spending on IT in an improving economy has contributed to such growth.

The Germany-based company - which produces ERP systems such as SAP Business One - has also benefitted from its corporate customers extending software maintenance contracts, the source noted.

It explained: "ERP software helps companies integrate different applications that lack a common interface."

And Trefis forecast SAP's profit margins will continue in a positive trend after the organisation recorded a revenue increase on product sales from 80 per cent in the first quarter of 2010 to 86 per cent in the second quarter.

It added ERP is one of the most important software categories for the firm.

Bill McDermott, co-chief executive officer at SAP, recently claimed the organisation's customer pool will expand significantly by 2015 after it leapt from 10,000 to more than 100,000 in the past quarter.

Posted by Shannon Wells