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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Mercer-Hursh who wrote (36758)	12/18/2000 4:23:44 PM
From: Michael H	Read Replies (2) \| Respond to of 54805

I am not sure about "Gorilla" status for SAP besides that Moore mentions SAP several times as an example, and I am not sure about market share, but there is definitely a value chain around SAP. SAP has a OPA in several ways: (1) Remote function call (RFC) interfaces allowing to run other programs or functions or to be called from outside to perform certain functions. (2) SAP is delivered completely including source code in ABAP/4 for the application (not the kernel), allowing to develop your own addons and functional enhancement. This created a biotop of smaller software vendors and freelancers to sell addons. Further parts of the value chain is the database interface (you can select any of Oracle, DB2, Imformix or Adabas), several hardware sellers (IBM, Sun, HP, Intel) and OS (The kernel runs both on NT and Unix). Not to speak of myriads of "Integrators" among others PWC, Andersen Consulting, KPMG, Deloitte Consulting, Ernest&Young, even HP, Origin etc are in the business. AFAIK concerning integration functionality between logistics and finance, Oracle, Peoplesoft, i2 and Manugistics can not really compete. There are better in their respective niches, but not a real alternative. Problems at SAP are at the moment their weakness in B2B (where ARBA is better positioned), CRM (Siebel) and Supply Chain Optimizing (i2). As an ERP system, I don't see a useful alternative. Michael

To: Thomas Mercer-Hursh who wrote (36758)	12/18/2000 6:21:21 PM
From: Mike Buckley	Respond to of 54805

Thomas, While big, [SAP doesn't] really have a very large market share (total market WW must be something like $20B or more) If you're right about the total market, they've got a 25% share. That's enough to justify a gorilla of an applications market. I don't know how they rank now, but a few years ago SAP was the third or fourth largest software company in the world. You might want to check out the manual's thoughts about SAP. It's referenced 15 times in the index. --Mike Buckley