SAP, Oracle: Effects of earthquake Japan - International business times

Last week present crisis a short-term interruption for a handful of software companies, which have exposure to the region of earthquake and tsunami in the North Japan and its aftermath in the form of nuclear reactor.

Japan is the economy in the world and one of the largest trading partner of the United States number three, so a long-term interruption by the United States and the global economy should ripple.

"We think the worst case scenario would be at this point, if Tokyo were due to the dangerous radiation levels down." This would have a global impact and lead to a slowdown in the global economy, "wrote FBR capital markets analyst David Hilal in a note to clients."

Impact on SAP, Oracle

FBR analysts expect some March quarter employs are moved to Japan, companies evaluate how the impact of the earthquake on their businesses, which would have a short-term impact on the traditional software licensing models of SAP and Oracle.

SAP (NYSE: SAP) more would be affected in the near future as it has a March quarter near compared to February for Oracle (NASDAQ: ORCL).

"We note that many Japanese companies financial years, which at the end of March, so is a danger that the budgets can't see the usual year-end flush," said the analysts.

While the risk of SAP and Oracle Asia Pacific and Japan are susceptible to slippages in the region in the near future in accordance with the total worldwide IT spending, think the analysts leaving their traditional licensing models deal.

ADRs SAP fell 75 cents to $55.80 on the NYSE. Shares of Oracle fell 38 cents to $30,79 on the NASDAQ.