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: JRH who wrote (2138)	8/6/1998 7:23:00 PM
From: singletree	Respond to of 3424

Michele Harris Probably writes, Xmas, too.

To: JRH who wrote (2138)	8/6/1998 7:35:00 PM
From: Lizzie Tudor	Respond to of 3424

That would explain why SAP consultants are being paid up to $120 per hour. Fundamental economics of supply & demand: increase the demand and the price goes up. I think that explains the situation at SAP. Are you one of those people who talk about "Sap", rather than addressing it properly as "Ess-Ay-Pee" <VBG> ?? What are you talking about? Sap consultants make between $120 (low) - $300+ (high). Psft is in the same price range, as is Oracle. These are in house consultants I am referring to. Many, many people have become independent consultants specializing in enterprise software and the quality of the independents is usually a little higher. This is a result of the tight job mkt etc. So, my experience is, customers (Cisco, for example) will use the in-house consultants for the implementation only, since the sw pricing usually includes this, and later will use independents for maintenance, ongoing projects etc. The specificity of the tasks almost always mean there is little or no pricing pressure. Its not really a supply/demand situation as you imply (however, rates for Sap used to be much higher than $120 so if you choose to see that as declining demand, so be it). So, I doubt Sap rates would go down, even though the demand dries up, and if it does dry up, I believe it will hit the in-house consulting orgs but the independents will still have plenty of work. In fact, thats what I think is happening. What this means, I think, is that there are fewer new implementations at Psft and Sap.