tag:blogger.com,1999:blog-129857922559830319.post5556241924343351298..comments2024-02-28T20:53:34.228-08:00Comments on SAP: loathe it or ignore it, you can't like it: Thru a glass darklyUnknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-129857922559830319.post-36834029806330717832009-07-29T05:13:25.209-07:002009-07-29T05:13:25.209-07:00Keven,
Just to point out that according to SAP...Keven,<br /><br />Just to point out that according to SAP's own annual report (2008) their revenue was $11.5 billion of which software sales accounted for $3.6 billion. Sales of software only make up a third of their income - the bulk of it comes from support, consultancy revenue, training services and "other professional services". I'm not saying that they don't sell software - but their business model is based upon "value added" business functions generated thru their own or partner consultancy, not thru sales of software or licences.Sapmesidwayshttps://www.blogger.com/profile/17781470095925090298noreply@blogger.comtag:blogger.com,1999:blog-129857922559830319.post-18707962510256547332009-07-13T13:13:01.445-07:002009-07-13T13:13:01.445-07:00I love the blog and have read everything up to thi...I love the blog and have read everything up to this point but have to comment here.<br /><br />SAP AG is a software company 100%. They are NOT a services company. SAP has a consulting service but they only make up less than 1/3 of the company and only (in the USA) take up about 5-10% of the SAP consulting market. SAP's main focus has historically been developing enterprise software, not servicing it. <br /><br />Point #2, your comment on consulting is spot on. SAP products are deep and complex making the knowledge of the underlying processes and configuration very valuable. One of the negative side effects of this is the massive amount of filth that has been attracted to the consulting side of the industry. The stories are endless!!! And you hear them over and over... so-and-so consultant is presented as a "Senior" level resource on a Monday and by Friday the customer finds out that he doesn't even know XYZ even exists! At times it can be a bit funny to hear this stuff until you realize just how outrageous the lies are and degree of mis-reprensentation that exists in the market. In the end, customers get really screwed in this and they NEED to be more disciplined in vetting the people they onboard. For the consultant PIM, you shouldn't even let them in the door until you talk to 1-2 past customers and get a chance to meet him. As shocking as it is to hear stories about the know-nothing consultants in the market, it is even more infuriating to me to hear about customers who DO NOT KICK THESE GUYS OUT THE DOOR. I understand the limitations (staffing, cost, time, scope) at customers, particularly the smaller ones, tend to be firm and you don't have much room for error... but customers cost themselves so much more money by going live with sub-optimal (or non-functioning) solutions that were designed and built by third party guys that were walking the streets as freelancers just weeks before showing up at your door as a "Senior Consultant" with "BIG 4 Consulting Firm". It's like my doctor tellling me to eat better; in the end, I have only myself to blame for not following his advice.<br /><br />Best of luck with your journey. Keep posting.Keven Purnellhttps://www.blogger.com/profile/04285081189783917983noreply@blogger.comtag:blogger.com,1999:blog-129857922559830319.post-64884060076161060492009-06-25T07:37:21.367-07:002009-06-25T07:37:21.367-07:00Hi DD,
The point that I was trying to make is tha...Hi DD,<br /><br />The point that I was trying to make is that SAP could give the software away free; the bulk of their revenue is from consultancy, education, training etc. In several cases, it appears they don't charge that much for the software. I heard of a project where they were in a bidding war against Oracle - they dropped their software / licence price for 5,000 users to under a $100 per user. This was becase they knew they would make the money back on the services side.<br /><br />Your point about beta code is also very valid. Someone I met a while back told me that they only found out that they were on beta code after 8 months into using it and they had paid $15 million for this.<br /><br />I can also confirm your point about the beginners being put forward as experienced consultants as we have seen that ourselves. Unfortunately, they keep adding these people to the project and we know nothing about them or their background before they start. As you say, consultants are a whole other can of worms.<br /><br />As always appreciate the kind words.Sapmesidwayshttps://www.blogger.com/profile/17781470095925090298noreply@blogger.comtag:blogger.com,1999:blog-129857922559830319.post-82033732241614539212009-06-24T11:48:33.504-07:002009-06-24T11:48:33.504-07:00I really appreciate your blog, it's inspiratio...I really appreciate your blog, it's inspirational. Thanks.Domino Devhttps://www.blogger.com/profile/12460385464172435190noreply@blogger.comtag:blogger.com,1999:blog-129857922559830319.post-5248002981469355432009-06-24T11:46:58.348-07:002009-06-24T11:46:58.348-07:00What a brilliant summary! I don't understand w...What a brilliant summary! I don't understand what you mean when you say that SAP does not sell software. Their price is VERY high, they charge a lot. In my company, they wanted to charge us for being beta testers. yes, you read correctly, they wanted to charge us for testing and debugging their next version! In addition to the fee, we were supposed to pay a project leader dedicated to our beta testing phase. That's what I call over exageration.<br /><br />You explain well that the critical factor of success of a SAP implementation is the quality of the consultants, that is their knowledge of the product AND their knowledge of the business domain. SAP consultants are very rare and therefore are more expensive than other consultants. In Europe, the range is between 1000euros/day to 2500euros/day. But don't ever think that for 1500euros you will get the big guru. Sometimes you just get an early beginner who arrives at 10am and leaves to the airport at 4pm. Many people guess that the consultants know little about the business domain, but few guess that in some cases they know also very little about the product.<br /><br />I have heard cases of true beginners who were charged as confirmed SAP consultants. I believe the selection of the contractors is the most important point. Vendors statements must be verified, analyzed, challenged, etc <br /><br />But here it brings us to the vast discussion about consultants in general. Consultants firms are sometimes telling a lot of false statements just to get the contract. The rule is to be very critical and selective.Domino Devhttps://www.blogger.com/profile/12460385464172435190noreply@blogger.com