SAP A.G. Message Board - Msg: 5286095

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Technology Stocks : SAP A.G.

SAP 247.13

+0.7%

Dec 5 9:30 AM EST

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To: albert123 who wrote (1638)	7/23/1998 7:43:00 AM
From: DownSouth	Read Replies (1) of 3424

>One of the secrets of SAP's success is that SAP concentrates on the products and keeps consultancy by SAP employees to a minimum, thus allowing many others also to earn money off of the SAP products. Excellent point! In fact, that, IMO, is one of ORCL's problems. Ellison has established a HUGE services revenue stream and is very selfish with it. You buy ORCL apps, you buy ORCL implementation services! SAPs services model creates a SAP culture in the world outside of SAP. It protects their margins by not diluting high product margins with low services margins. It accommodates their growth, even after they are the gorilla, by letting the market answer the demand for SAP consultants rather than sapping (sorry) the resources of SAP in finding and training consultants. Novell did this successfully for many years. MSFT does it now (and crushed Novell).

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