We probably did not realize how much more opportunity we could have if we reach out and work together with other systems.

Hasso Platne SAP

The partnership deals are seen as a display of SAP's move into internet-based computing.

But the software maker will do so without trying to build everything itself.

"We probably did not realize how much more opportunity we could have if we reach out and work together with other systems," said chief executive Hasso Plattner.

"We have learned this now."

"I think the most important partnership is with IBM. SAP is really developing into a world leader in software," said Merck Finck & Co's Theo Kitz.

New partners

SAP will expand its services and software partnership with IBM.

In addition, it has landed agreements with Palm and Compaq, two leading handheld computer makers, to find ways for companies to send SAP information to workers' mobile units.

"We have become so internet-addicted that we absolutely have to be connected all the time," said Compaq Computer's chief executive Michael Capellas, hailing the deal with SAP.

Ray Lane, the former second-in-command at SAP's rival, Oracle, also praised the way the German company has realised that partnering is the way forward.

"The basis of the major disagreement between [Oracle boss Larry Ellison] and myself was that one vendor can do it all," Mr Lane said.

"One vendor can not do it all."

Slow internet

SAP has long been under fire for being slow to enter cyberspace. But no longer.

"SAP was perceived as a loser [a-year-and-a-half] ago. We never perceived ourselves as losers," said Mr Plattner.

Indeed, last year, the number of users of its application package, mySAP.com, quadrupled to 4m.

"The customer base of mySAP.com has risen enormously," said Mr Kitz.

Big deals

And it is likely to continue to grow.

SAP said it had reached a preliminary agreement with the world's second largest energy supplier Shell to connect its operations in 130 countries.

SAP is really developing into a world leader in software.

Theo Kitz Merck Finck & Co

In addition, SAP has landed a $40m deal with the number two network testing equipment firm, Acterna, which will use mySAP.com applications globally.

To top it all, a blanket purchasing deal has been reached with the US defence department, under which military units will be allowed to sign up and use the mySAP.com software.

This agreement could lead to massive contracts in the future, SAP hoped, adding that the deal was clinched after the a trial project with the US Naval Air Systems paved the way for them to sign up for the mySAP.com software for 33,000 users.

Share price

The news of the deals sent SAP shares up 4.8 euros, or 2.8% to close at 171.30 euros on the Frankfurt stock exchange.

Its ordinary shares traded up 5.49 euros to 171.10, a gain of 3.32%.