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 : CATP-The stock is taking off -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (650)	5/1/1999 12:40:00 AM
From: John Ritter	Respond to of 782

Rick, Coming from you this means a great deal, thanks. John

To: Rick who wrote (650)	5/2/1999 12:02:00 AM
From: Vaibhav R. D.	Read Replies (1) \| Respond to of 782

CATP for sale due to ERP slowdown ? News Article...... Regards, Vaibhav Following is a complementary excerpt of the weekly GigaFLASH, which provides Giga commentary on timely topics or hot "grass roots" technology trends that surfaced from our client base or our weekly research meeting. ERP Services Business to Slow Dramatically, Leaving Systems Integrators in the Lurch Source: Giga Analyst Julie Giera Most major systems integrators have invested heavily in the construction of enterprise resource planning (ERP) practice areas during the last 18 months. They were convinced this was the next revenue cash cow. They are now realizing how wrong that strategy was. Cambridge Technology Partners may be for sale, according to Wall Street pundits, as a result of its failure to transition ERP business to new revenue streams and its tendency to "sit on their assets." Andersen Consulting also has announced that it is revising revenue growth projections for this year: downward; the company is expecting 18 percent growth instead of the heady 25 percent it experienced last year. Andersen CEO George Shaheen is predicting that 100 percent of the company's revenue in the next two years will come from e-commerce. Giga finds these numbers a bit wild; however, the trend toward significant investments in e-commerce practices will continue. What does this mean for the Big 5 accounting firms that have invested heavily in ERP? Large systems integrators, such as IBM, Andersen and Keane, are also going to face significant pressures on margins as many Year 2000 companies began the transition to ERP late last year. Downward pressures on margins in ERP consulting space will have negative effects on earnings. Expect mergers/acquisitions of smaller consulting firms.