SAP is among the biggest technology vendors not to make it into an influential annual ranking of the top 100, as a result of fending off stiff mid-market competition.

The software maker did not make it the 2007 Info Tech 100 listing compiled by Business Week because its recent focus on developing products for the small-to-medium sized business (SMB) sector is taking it into direct competition with software-as-a-service vendors like Salesforce.com, Sugar CRM and NetSuite.

The strategy “could suck sales from SAP's traditional software lines,” said the publication. “Investors are nervous, knocking SAP's stock price down 12% since January and pushing it off our list, down from no. 39 last year.”

It also said the traction gained by more traditional competitor, Oracle in the manufacturing industry for example, was putting pressure on the company to accelerate its competitive strategy, which led to the resignation of global operations head Shai Agassi following confirmation that chief executive Henning Kagermann would stay on for two more years beyond retirement age. Customer relations specialist, Léo Apotheker has since been promoted to deputy chief and widely touted to take over from Kagermann when he steps down.

Oracle has also recently initiated legal proceedings against SAP US support subsidiary, TomorrowNow over alleged copyright infringement.

Other losers in the top 100 include Dell, who dropped out of the listing from last year’s no. 15 position following board level, accounting and market responsiveness issues, and Motorola. The full list can be viewed here.