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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: gcrieff who wrote (25107)5/21/2000 1:01:00 PM
From: Jacob Snyder  Read Replies (2) of 54805
 
thanks for the article,

I've owned SAP since 3/99. They own an industry standard. But R/3 has 3 problems:
1. big up-front set-up costs (mainly to teach employees how to use it)
2. not user-friendly
3. not net-friendly

I think they became fully aware of the above last year, and are working on it. No signs yet of definite success. SNDT (and others like them) will find themselves in trouble if SAP figures out how to make R/3 easy to use. The consulting firms are in deep trouble already, as SAP is moving to a net-based renting model, rather than an in-house sales model. In a renting model, the big up-front costs go away, and this should make it possible for SAP to expand its market into medium-sized companies. Soon, it will be possible to mainly outsource the skills needed to use R/3. At least, that's the plan.
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