SAP Does an About Face on Some Fees
January 16, 2010
I think SAP provides the same type of information a long range scout does. The scout goes out, checks out the territory, and then comes back and reports. The scout’s bosses listen to what the scout says and then decides what to do. The whole set up of an organization mode with scouts and bosses “in the rear with the gear” is fascinating to me. Vendors of complex, time consuming, resource intensive old fashioned software are trying to change. With revenue slipping and the economic crisis lingering, SAP provides useful information. Read “Price Hike Ditched as SAP’s Enterprise Support Makes a Comeback” and you can catch a glimpse of what other enterprise software vendors may be pondering; namely, a price cut and cooing to make peace with customers. Losing a customer is an expensive proposition because it is a one two hit. The company loses the revenue and then has to spend dough to find more customers to take up the slack. In my opinion, the most interesting comment in the write up was:
This move shows that SAP is listening to user groups, and therefore its customers, taking on board our feedback and making changes to meet the needs of all SAP users,” he said in a statement.
My thought is that this is a placeholder move. SAP will be under more price pressure, not less. Once the company blinks, the customers know that SAP must cave. Lower prices mean bad news for enterprise software vendors and resellers. Lower prices may force cloud alternatives to lower their rates. In short, am I seeing a phase change in enterprise software? Yep.
Stephen E Arnold, January 16, 2010
No one paid me to write this. I may fly over the SAP headquarters next week, but I don’t think I will visit. Do I report this to the FAA or to the DOT?
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