CHALLENGE                           SOLUTION

SAP                 SAP dominates the               A massive overhaul. SAP
WALLDORF,           business of supplying           is aiming to release new
GERMANY             finance, manufacturing,         Web-based versions of
                    and human-resources             its core software in
                    software for corpora-           the next six months. Its
                    tions with its 12,000           Marketplace Web site
                    customers and a 30%             targets business-to-
                    market share. But its           business e-commerce. If
                    applications are complex,       SAP gets this right, it
                    costly to install, and          should be able remain
                    not Web savvy. Revenues         the market leader and
                    last quarter rose just          get its revenues-
                    8% from a year ago, to          growing at more than
                    $1.304 billion.                 25% again.

ORACLE              Quarterly results have          Oracle took the lead
REDWOOD             zigzagged as Oracle             in adapting its prod-
SHORES,             sales reps have pushed          ucts to the Web. Now,
CALIF.              hard to deliver great           it's branching out into
                    results in one quarter          customer-relationship-
                    only to drain the sales         management software.
                    pipeline for the next           With Oracle Business
                    one.                            Online, it sells com-
                    Application sales rose          panies software and
                    just 11%, to $548               charges a fee to run
                    million, last quarter           it for them. Look for
                    vs. 24% one year                Oracle to gain market
                    earlier.                        share on the rest of
                                                    the pack.

PEOPLESOFT          PeopleSoft was the              New CEO Craig Conway
PLEASANTON, CALIF.  fastest-growing of the          is accelerating prod-
                    giants. But growth              uct delivery. The com-
                    stalled nine months             pany's e-procurement
                    ago. It started off             package arrived this
                    specializing in human-          summer. He just bought
                    resources management            Vantive Corp. to help
                    software and doesn't            get the company into
                    have as broad a product         customer-relationship
                    line as the others.             software. PeopleSoft
                    Revenues dropped 2%             won't collapse, but
                    last quarter, to $312           its glory days are
                    million.                        probably over.

J.D. EDWARDS        The company blitzed             It is recasting its
DENVER              past the troubled Baan          programs into smaller,
                    Co., but then ran into          Web-enabled applica-
                    problems of its own.            tions--the right stuff
                    It lacks an A-list of           to peddle to midsize
                    big clients, which              companies. In June, it
                    leaves it more vulner-          picked up Toronto-based
                    able to industry down-          Numetrix to claw into
                    turns.                          the hot market for
                    Revenues were down 3%           software that manages
                    last quarter, to $232           supply chains. Right
                    million, and the com-           now, it's the weakest
                    pany lost $33 million.          of the big four.