SAP A.G. Message Board - Msg: 6443172

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Technology Stocks : SAP A.G.

SAP 244.83

-1.0%

Dec 12 9:30 AM EST

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To: Steve Warkentin who wrote (2789)	11/16/1998 9:23:00 PM
From: riposte	Read Replies (1) of 3424

SAP and the middle market... My knowledgeable SAP friend who cannot post here on SI was very fired up by the following post over on the Siebel Systems thread: www3.techstocks.com He's asked me to post the following, to help clear up some misunderstandings regarding SAP: Most may not realize SAP began with the middle market before enhancing the product better suited to fortune 500 companies. The decision was to go where the money is. I.E. largest number of seats per R/3 sale. To date companies like Peoplesoft in spite of their new and unproven 3-tiered client system still cannot support clients with a high number of simultaneous users. This is why SAP gets the really big customers and P does not. Throughout the years, as R/3 captured the high end market, they have been staffing up and maturing their support structure. SAP is now in the support-position to sell into the slightly smaller sized companies… in volume. Current internal competitive reports say SAP is more than 2 years ahead of all competitors in both support and training. It is my opinion P dug themselves a hole entering the marketplace in the mid-market. This let SAP dominate uncontested where the big money is and at the same time prepare for assault on the Mid-market. Full steam ahead. I continually see rhetoric on these boards insinuating what a bad architecture R/3 is based on. Consider the source. (These are competitors who know absolutely nothing about R/3 internals). It is fact R/3 was designed as 3-tiered from day 1, completely from scratch. Peoplesoft didn't go about it this way. They just now separated their very inefficient 2-tiered system to make a 3 tiered (R/3 runs as 2 tiered and is able to support 50 concurrent users on a 64kb bandwidth as opposed to PeopleSoft's 7 concurrent users. This information comes from SAP internal competitive reports). One question I have is weather P's architecture is based on an interpretive language. Does anyone know?

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