PSFT - Fiscal 1998 - Discussion for the next year Message Board

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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year

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Oct 29 5:00 PM EST

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To: RetiredNow who wrote (2471)	10/4/1998 11:37:00 AM
From: Melissa McAuliffe	Read Replies (1) of 4509

With respect to SAP cutting prices......if that's true then it may have caught PSFT by surprise. But it SHOULD NOT a)cause them to have to meet SAP's price or b) lose the deal because of price. And who's to say they had to cut their prices to compete with SAP anyway... Particularly with SAP......notoriously complex software with high costs of implementation and long times to implement. The software is but a small portion of the total cost of implementation. It's possible that in the public sector business unit,, PSFT has not had to compete head to head w/SAP. So this may simply take a minor change to their sales strategy/tactics and this problem should go away. All they have to do is refocus the prospect on the total costs of the project. Particularly in the public sector where, I believe, the entire project cost has to be funded....not just the software... I wouldn't be surprised to find that implementing SAP software is twice(or more)expensive as implementing PSFT.

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