tritonbaan
15th April 2008, 15:56
Larry Dignan has a blog post on Zdnet about traditional software licensing. http://blogs.zdnet.com/BTL/?p=8440
This blog post is actually a digest of Gartner's prediction on the profit margin of traditional ERP software vendor, like SAP, Oracle and Microsoft.
High end ERP is a highly monopoly market, which is dominated by SAP and Oracle. This is the reason why these two companies have such a high profit margin.
It is difficult to switch an ERP product, considering that the switching cost is huge. The basic problem is because ERP is a huge software, involving most of your company's employees and covering almost all your major business activities. Today if you want to change your ERP vendor, remember not to choose another huge software again. While you may want to pick all your business software from a single vendor to reduce the headache on integrations, many stories have showed that it is still better to keep multiple vendors and leave your company some bargining power.
"There are no points for loyalty in the software business."
http://ziaps.blogspot.com/2008/04/traditional-software-licensing.html
This blog post is actually a digest of Gartner's prediction on the profit margin of traditional ERP software vendor, like SAP, Oracle and Microsoft.
High end ERP is a highly monopoly market, which is dominated by SAP and Oracle. This is the reason why these two companies have such a high profit margin.
It is difficult to switch an ERP product, considering that the switching cost is huge. The basic problem is because ERP is a huge software, involving most of your company's employees and covering almost all your major business activities. Today if you want to change your ERP vendor, remember not to choose another huge software again. While you may want to pick all your business software from a single vendor to reduce the headache on integrations, many stories have showed that it is still better to keep multiple vendors and leave your company some bargining power.
"There are no points for loyalty in the software business."
http://ziaps.blogspot.com/2008/04/traditional-software-licensing.html