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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Lutz Moeller who wrote (3149)	10/22/1998 8:42:00 AM
From: Maven	Read Replies (2) \| Respond to of 4509

I share your optimism about PSFT. Here's an article from INTECH magazine, an engineering journal. "BOSTON--AMR Research, a market analysis firm specializing in enterprise applications and enabling technologies, predicts the enterprise resource planning (ERP) software market will grow at a compound annual growth rate of 37% over the next five years. According to the firm's ENTERPRISE RESOURCE PLANNING SOFTWARE REPORT, 1997-2002, total company revenue will top $52 billion by the year 2002. AMR Research attributes the continued growth to three primary factors: ERP vendors are continuing to expand market presence by offering new applications such as supply chain management, sales force automation, customer support, and human resources. To sustain their rapid growth, ERP vendors will look to sell more licenses into their installed base. Currently ERP vendors have a 10-20% penetration (i.e., percentage of total employees currently using the ERP system). this will grow to 40-60% within the next five years, AMR says. *While ERP originated in the manufacturing market, ERP usage has spread to nearly every type of enterprise, including retail, utilities, the public sector, and health care organizations. Most enterprises will purchase new ERP systems over the next five years, often for the first time, AMR believes. The AMR report says vendors in the ERP market are segmenting into two tiers and are focusing on expanded product functionality, new target markets, and higher penetration rates. The top tier consists of five vendors--Baan, J.D. Edwards, Oracle Applications, PeopleSoft, and SAP AG. These companies account for 64% of the market revenue and have grown over the past year at a furious pace of 61%. Baan, J.K. Edwards, Orace and PeopleSoft are expected to each approach or exceed $1 billion in total revenue in 1998, wihile SAP will approach $5 billion, AMR predicts." RSSheldon