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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: Gilbert Drapeau who wrote (15239)	1/29/2001 11:29:20 AM
From: MeDroogies	Read Replies (2) \| Respond to of 19080

That's pretty rich. EVEN IF the 1,500 employees counted toward the $1bb (and it probably did), assume they made about $100k each (on the high side, if you ask me, but who knows?). That's a savings of only $150mm. Double the income, and it's only $300mm. Still, if they fired 1,500 employees, how many did they hire and at what income? Also, the concept of using the software for savings ASSUMES that there will be some layoffs due to efficiencies, so this probably was factored into the equation and still makes sense to include in the $1bb in savings. The real twist here is whether or not Larry can squeeze another $1bb in savings this year....regardless of whether layoffs are included. I'm willing to bet that a HUGE portion of the $1bb came from true cost savings....paper, supplies, overhead, etc.

To: Gilbert Drapeau who wrote (15239)	1/29/2001 11:42:45 AM
From: Roadkill	Respond to of 19080

>>SAP Co-Chairman Hasso Plattner challenged Oracle's current advertising campaign, which claims the company saved $1 billion by bundling all its online activities into one database. "This statement is a lie," Plattner was quoted as saying. "They fired 1,500 employees."<< What a clown. Doesn't he realize that consolidating disparate and geographically dispersed IT activities permits a reduction in headcount? In any event, even assuming that each of these 1500 employees made $100K/year, that would only result in a savings of $150 MM. What about the other $850 MM, Hasso? This statement alone demonstrates why SAP has flailed so badly over the past several years. It's main man Hasso can't even use a calculator and is arrogant enough to think that some blanket statement, said with enough disdain, will persuade. He'd be more useful as a 5th Teletubbie. At least that way he would entertain two-year olds. SAP's current revenue boom is more a function of the strong applications software market and certain xenophobic European companies insisting on buying their software locally. (MO contract notwithstanding, of course. For the life of me, I can't figure out what motivated MO to take that deal!) Once the low-hanging fruit in the apps market has been plucked, SAP is toast. RK