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November 1st, 2008

SAP, Oracle, SaaS - The changing ERP market

Posted by Brian Sommer @ 2:41 pm

Categories: Current Affairs, Future of Application Software, Oracle, SAP, Software Marketing, The Applications Market

Tags: Software-as-a-service, Oracle Corp., SAP AG, ERP, Enterprise Resource Planning (ERP), Software As A Service (SaaS), Enterprise Software, Software, Emerging Technologies, Brian Sommer

The times they are a changing

This InformationWeek article is a must read for any ERP buyer, seller or market watcher. SAP Global Operations CEO Bill McDermott confirms some details about SAP and the hosting for its Business ByDesign product line. He also has some choice words to describe rival Oracle’s offerings.

The story about the hosting is interesting. Earlier in the week, a German publication indicated that SAP might sell its hosting business to British Telecom. That article also intimated that there might be issues with the Business ByDesign product line. Several bloggers and I tried to track down additional confirmations re: these developments and then this InformationWeek piece appeared.

Apparently, the company will transfer responsibility for hosting its solutions to its partners. One of those mentioned was BT. Also, SAP will shed some $225 million in operations costs.

And then, there’s this crack about Oracle’s ‘Frankenstein operation’. Check it out.

More on Monday….

Brian SommerThis blog explores the intersection set between services and technology. If it impacts either space, it will be covered here. Brian Sommer is a former Accenture partner. He did an 18-year tour of duty there and ran three small practice units (Finance Center of Excellence, HR Center of Excellence and Software Intelligence). He’s sold service projects in almost every continent and remains just as current on both services and technology today as ever before. Brian is currently CEO of TechVentive, a strategy consultancy servicing technology providers, and a research analyst with Vital Analysis. See his full profile and disclosure of his industry affiliations.

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