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

To: treetopflier who wrote (2144)	8/6/1998 9:13:00 PM
From: Jay8088	Respond to of 3424

Thanks for interesting comment. It does remind me that SAP itself has projected a slower growth going forward due to Y2K issue.... However I believe SAP investors should think in terms of 3-10 years horizon, not next month or next quarter.

To: treetopflier who wrote (2144)	8/6/1998 9:24:00 PM
From: riposte	Read Replies (3) \| Respond to of 3424

ERP Market To Reach $52 billion by 2002 From InformationWeek... Thursday, August 6, 1998 ERP Market To Reach $52 billion by 2002, Report Says Fueled by strong demand for supply-chain management applications, steady growth in the enterprise resource planning market is expected to continue over the next several years, according to a consultant's report released today. The worldwide market for enterprise applications is expected to grow from $14.8 billion this year to $52 billion by 2002, according to the study of Global 1000 companies from AMR Research. AMR's Enterprise Resource Planning Software Report 1997-2002 predicts steady growth of the ERP market because vendors are expanding ERP applications to more fully encompass supply-chain management, sales-force automation, customer support, and human resources. "Supply chain is hot because it's easiest to justify to a CEO," says Bruce Richardson, vice president of research strategy at AMR. "Vendors have a strong value sale when they can show a payback of 30% to 300%." In addition, at companies deploying ERP systems, only 10% to 15% of employees are using the software. Vendors are looking to build on that installed base, by increasing the number of employees who use the system to 40% to 60% over the next five years. The study says ERP has expanded into vertical industries. While originally a function of manufacturing, the technology is becoming increasingly prevalent in sectors such as retail and health care, many of which are in the early stages of ERP deployment. AMR says its study refutes the notion that ERP spending is fueled primarily by year 2000 efforts. "The Wall Street guys tend to say that as we get closer to 2000 the ERP market is going to go off the cliff," Richardson says. "That's just not the case. The success of the ERP market has been more closely tied to the U.S. economy. The economy right now is robust, so businesses are spending more on things like equipment, engineering, and services to build their companies, and ERP is a big part of that." Currently 64% of the ERP market revenue belongs to the top five players: SAP, PeopleSoft, Baan, J.D. Edwards, and Oracle. These companies have seen a growth rate of 61% over the past year. The leader, SAP, should reach about $5 billion in revenue for 1998 while the others will be in the $1 billion range, the report says. FULL ARTICLE @ informationweek.com