Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (545)	3/6/1998 4:01:00 PM
From: Amber	Read Replies (3) \| Respond to of 3424

hey everyone, after reading this message base, i really want to jump into SAP, but i have a few more questions that have been pestering me. here are some questions that maybe some kind-hearted soul can answer for me: according to the website, SAP's strategy for growth is to expand the types and sizes of enterprises which can benefit from using R/3. my questions are: - Which types and sizes of enterprises does SAP look to expand into? - Are there any types and sizes of enterprises that have been saturated already by enterprise application software? For example have all of the huge multi-national companies already adopted R/3-type software? - If the client base of huge corporations is gradually shrinking (which I don't know if it is), where do you guys think SAP will be seeking to expand to? Also according to the website, "as the installed base grows and SAP's close relationship with its customers' business processes deepen, consulting and training revenues and profits will also expand." - I had thought that consulting and training is something that happened before and also simultaneous to R/3 installation and implementation. Is that incorrect? How does the relationship between SAP and its client continue once the software is installed and the client knows how to operate it? Thanks in advance to anyone who clears up my confusion!!

To: Ibexx who wrote (545)	3/13/1998 4:58:00 AM
From: VinceDeVici	Read Replies (1) \| Respond to of 3424

I have lurked here for some time and am now using the 30 day trial. I enjoy your insights on the stock. I am looking to make two decisions: (a) whether I should buy SAP or a competitor (PSFT)for the long term (b) an entry price for the chosen stock. I would like to get a handle on the relative merits of SAP and PSFT. It seems that PSFT has greater earnings growth potential (albeit with a higher PE) than SAP. On the other hand, SAP is the leader, has alliances with with MSFT and INTC. Any thoughts and suggestions on which one might be better? Can you think of any other pros/cons? On a separate note, I would like to get a better understanding of some of the fundamentals of SAP's businesses: (a) what are the implications of the web for ERP? Does SAP's collaboration with INTC (PANDESIC) have any implications for its future growth/leadership in this industry? (b) suppose I am a small vendor that has EDI linkages with larger clients. Does the choice of ERP software for my business depend on what my clients use, given the presence of these EDI links? Do I have to install SAP's R3 if my client has the R3 system? If so, then SAP's larger installed based should give it a definite advantage in penetrating the middle/smaller markets and we have the makings on an MSFT type increasing returns to scale situation. I apologize in advance if I have violated some protocols here, as I am new to posting on these boards. I enjoy the quality of insights on this thread and look forward to hearing from you. Thanks, Vince