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SAP's dominance
Filed in archive Technology by tj on November 22, 2004
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Rajesh links to this Barrons's article about SAP's push to gain 70% market share largely behind the scenes:

"The fact is, Kagermann & Co. soon could hold sway over the corporate-software market to the same degree that Cisco Systems came to rule the Internet- router business in the 1990s. Cisco, after realizing it had become the preferred supplier of the most vital picks and shovels of the Internet gold rush, unleashed a sales and marketing blitz like few others, crushing the competition and becoming the predominant provider of networking gear.

SAP's greatest opportunity lies beyond Microsoft -- in a change taking place in the buying habits of corporate technology chiefs. Many of them no longer have the patience, or lavish budgets, for the costly wares of smaller, more specialized competitors. And they want "fewer necks to choke" when technology malfunctions. A report on tech spending released last week by Goldman Sachs noted that businesses are "still in the upswing part of the trend toward fewer, larger vendors."

...

The other big new product is NetWeaver, which is a stack of software built on an application server-plus, as Kagermann describes it. Application servers allow different applications, or software flavors, to talk to each other via the Internet. While most of SAP's products in the past were written in proprietary code, NetWeaver uses a more open code that works with software from other companies. For example, PeopleSoft human-resource applications can interact with SAP accounting software. NetWeaver also provides Internet portals for accessing information, and data-warehouse and "business-intelligence" capabilities for analyzing trends."


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Tags: SAP  ERP  technology  dominance  entrepreneurship  venture+capital  please+enter  next+deal 
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