It seems SAP is getting a slapping from various sources. Hardly a surprise, they’re the Big Elephant everyone wants to knock down. Much of the criticism is coming from financial analysts. I don’t take much notice of those guys as I find most don’t understand technology in the first place. And as for actually reading and digesting the balance sheet – puhlease. But then I understand most of these guys are driven by short termism and the need to turn a coin on every deal.
I was surprised at Larry Dignan’s coverage. Not a technical analyst in sight. OK so it was very much a sweep over SAPs already declared plans to go after the mid-market but it didn’t go far enough – IMO. I’m waiting for Jason Wood‘s analysis. Coming in a few days I hear. I’m saying nothing for the moment. Not that I don’t have an opinion but it’s not fully informed. I’ve had an anonymous SAP guy (email is definitely from SAP servers but I can’t track the fellow down) trying to tickle me into getting excited about SAPs next big thing which is related to the mid-market segment. Allegedly. I’ve yet to see hard evidence. Hence nothing to say on SAP strategy.
What I do say is that SAP investors will have to get used to a different level of profitability over the next year or so. There is simply too much pressure on its cost to business and a change of business model is inevitable. It’s ability to ramp into new markets will be crucial to long term success but I ain’t anywhere near writing them off.
But then lo and behold, Infor comes crashing in with a press release attributed to CEO Jim Schaper trying to deliver a knockout punch:
One has to wonder if SAP truly understands the mid-market or whether this strategy is solely an effort to detract attention from the slowing growth of their Fortune 500 base. Medium-sized customers do not want all-in-one products that need massive customization efforts to address their line of business. That approach is a relic of the past, when ERP implementations were akin to corporate open heart surgery. Infor has built a strong growing company on delivering solutions with industry experience already built in. The bottom line is that customers want more functionality, less complexity and the lowest total cost of ownership. That is not the plan we see from SAP.
Thomas Otter acknowledges that SAP PRs are not exactly ‘gorgeous’ but then asks in respect of Jim’s assertion:
Buyers out there. Does this make you want to buy their stuff?
I dunno. Conventional wisdom among the vendor community says that you don’t go around panning your competition. Thomas has written in the past that it’s something he assiduously avoids in customer presentations. [Thomas - can't recall the piece or find the link.] Get one of Thomas’s views here. I applaud Thomas’s work ethic. But then you can be assured the sales guys don’t give a rat’s ass about this issue. They’re there to sell ‘stuff’ and will use any way to close a deal. Jim’s taking the salesman’s mantra into the public domain.
I think Thomas misses the point. Jim’s words might be interpreted as the last gasp of a desperate person seeking to claim superiority when in fact they’re the master of creaking, aging code. Another might be Infor is fearful of SAPs ability to make systems integrators rich and is launching a pre-emptive strike.Yet another might be that Infor is right and is stimulating interest in support of its position. If it does nothing else, Infor’s PR made me curious. If that’s enough to get me to pick up the phone then great. It’s done its job. SAP press releases rarely, if ever, have the same impact.
Lessons for us all methinks.
Technorati Tags: Infor, marketing automation, PR, SAP
