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


To: Pareto who wrote (2981)1/27/1999 8:33:00 PM
From: dmccoach  Respond to of 3424
 
Pareto,

Those are good sites and I have been all over SAP's home site. Since I am brand new to SAP (I literally know nothing about their products) I am asking a basic question that is still not answered by your post or those sites you pointed out.

This site ( amrresearch.com ) states:
"Although SAP stuck to its original guidance
of 20% to 25% growth in 1999, the
company remains bullish about the future
with plans to double its size over the next
three years. To aid in that process, SAP
added 6,500 new employees during 1998
and made significant new investments in
R&D, which ended 1998 with over 4,800
employees. In 1999, AMR Research is
projecting SAP's growth will slow from
41% to a more reasonable 30%. We expect
consulting and new product sales in the
second half of the year to be SAP's
primary areas of growth during 1999."

While it is great that they want to double their business in the next 3 years, my question is:

Does their strategy for growth include a plan to attack smaller to mid-size organizations? And if their strategy DOES include going after smaller to mid-dize organizations (something I do know has not been a strong market for them), EXACTLY HOW do they plan to do that?

i.e. Are they creating a sales organization to attack this market place? Do they have a "special" product release? Will they (how well do they) run on NT and Microsoft Sql Server?

Not so obvious from what I can (or can not) tell.

Thank you...

dmccoach

p.s. btw, adding employees in anticipation of growth seems risky IMHO (so what if they FAIL to grow as planned?)