Comments on: Open Letter to Phil Wainewright http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/ Jeff Nolan's take on investment, innovation, entrepreneurship and the technology industry Fri, 19 Mar 2010 05:50:28 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Business Certainty http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1849 Business Certainty Fri, 05 May 2006 20:48:06 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1849 <strong>SaaS: The Good, The Bad, and the Ugly (part 2)...</strong> It’s Friday again. Time to take a look back at the good, the bad, and the ugly in the world of SaaS this week. The Good SaaS continues to expand into markets beyond the traditional CRMs. CRMchump reported: “SaaS is attracting...... SaaS: The Good, The Bad, and the Ugly (part 2)…

It’s Friday again. Time to take a look back at the good, the bad, and the ugly in the world of SaaS this week. The Good SaaS continues to expand into markets beyond the traditional CRMs. CRMchump reported: “SaaS is attracting……

]]> By: Business Certainty http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1773 Business Certainty Tue, 02 May 2006 15:02:37 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1773 <strong>Daily SaaS Links for 2006-05-02...</strong> [Daily Post from Cesura ] Business Certainty: SaaS: Churn is Not Inevitable"How do you instill customer loyalty? It is one of the most important questions a company must answer.  After all, even once you’ve nabbed a new customer it can.... Daily SaaS Links for 2006-05-02…

[Daily Post from Cesura ] Business Certainty: SaaS: Churn is Not Inevitable"How do you instill customer loyalty? It is one of the most important questions a company must answer.  After all, even once you’ve nabbed a new customer it can….

]]> By: » Ownership and on-demand | Software as services | ZDNet.com http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1753 » Ownership and on-demand | Software as services | ZDNet.com Mon, 01 May 2006 23:25:07 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1753 [...] Misconceptions about the on-demand applications model are alive and well and were given a thorough airing by SAP blogger Jeff Nolan in An Open Letter to Phil Wainewright, which he wrote in response to my posting the other day about SAP's strategy around licensing. [...] [...] Misconceptions about the on-demand applications model are alive and well and were given a thorough airing by SAP blogger Jeff Nolan in An Open Letter to Phil Wainewright, which he wrote in response to my posting the other day about SAP’s strategy around licensing. [...]

]]> By: Dennis Howlett http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1744 Dennis Howlett Mon, 01 May 2006 14:13:49 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1744 Thomas - the link to your place is dead. It would certainly be valuable to get an update - especially to see how this fits to other apps: dahowlett [at] gmail [dot] com Thomas – the link to your place is dead. It would certainly be valuable to get an update – especially to see how this fits to other apps: dahowlett [at] gmail [dot] com

]]> By: » Wither Oracle, SAP, et al? (Pt 3) | Software as services | ZDNet.com http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1702 » Wither Oracle, SAP, et al? (Pt 3) | Software as services | ZDNet.com Sat, 29 Apr 2006 00:20:53 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1702 [...] There's one more tough decision for enterprise software vendors that I want to cover. Then I can respond to some of the flak that I've taken for Pt 1, when I focused on license revenue vs maintenance/services. Pt 2 examined stack or platform? The third choice is around breadth of functionality. [...] [...] There’s one more tough decision for enterprise software vendors that I want to cover. Then I can respond to some of the flak that I’ve taken for Pt 1, when I focused on license revenue vs maintenance/services. Pt 2 examined stack or platform? The third choice is around breadth of functionality. [...]

]]> By: AccMan Pro - Dennis Howlett on innovation for professional accountants » Gartner, SAP and small business - an oxymoron? http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1656 AccMan Pro - Dennis Howlett on innovation for professional accountants » Gartner, SAP and small business - an oxymoron? Thu, 27 Apr 2006 04:13:58 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1656 [...] SAP knows it has to move downstream to ensure it is able to grow revenues under its current business model. Despite a lot of work going on inside the company, SAP is wedded to the ‘on-premise’ mindset, which immediately implies upfront cost heavy apps - which are no longer cool. In any market. SAP also has a definition of SMB which starts at revs of $250 million. (last time I looked) Which kind of says it. [...] [...] SAP knows it has to move downstream to ensure it is able to grow revenues under its current business model. Despite a lot of work going on inside the company, SAP is wedded to the ‘on-premise’ mindset, which immediately implies upfront cost heavy apps – which are no longer cool. In any market. SAP also has a definition of SMB which starts at revs of $250 million. (last time I looked) Which kind of says it. [...]

]]> By: Thomas Otter http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1646 Thomas Otter Wed, 26 Apr 2006 16:05:35 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1646 jeff, Dennis, in the HR space I think we(sap) do the on demand model, but in a different way. ADP, Convergys, Arinso, EDS, ACS and so on offer sophisicated HR services based on a SAP platform by subscription. It is working well. ADP for instance has doubled the number of employee records it runs on SAP this year. drop me a note if you would like to know more. jeff, Dennis, in the HR space I think we(sap) do the on demand model, but in a different way. ADP, Convergys, Arinso, EDS, ACS and so on offer sophisicated HR services based on a SAP platform by subscription. It is working well. ADP for instance has doubled the number of employee records it runs on SAP this year. drop me a note if you would like to know more.

]]> By: AccMan Pro - Dennis Howlett on innovation for professional accountants » Oracle, Google, dual-screen monitors, Wordpress, Jeff and Vinnie http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1627 AccMan Pro - Dennis Howlett on innovation for professional accountants » Oracle, Google, dual-screen monitors, Wordpress, Jeff and Vinnie Wed, 26 Apr 2006 01:06:09 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1627 [...] Oracle, Google, dual-screen monitors, Wordpress, Jeff and Vinnie By Dennis Howlett Earlier in the day, I dropped a comment on Jeff Nolan’s site about on-demand/open source and SAP/Oracle. In my comments, I said: Get the customers engaged in discussions that help them to learn and provide feedback to [in this case but applies to all vendors] SAP. [...] [...] Oracle, Google, dual-screen monitors, Wordpress, Jeff and Vinnie By Dennis Howlett Earlier in the day, I dropped a comment on Jeff Nolan’s site about on-demand/open source and SAP/Oracle. In my comments, I said: Get the customers engaged in discussions that help them to learn and provide feedback to [in this case but applies to all vendors] SAP. [...]

]]> By: Dennis Howlett http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1574 Dennis Howlett Tue, 25 Apr 2006 14:42:05 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1574 Personally, I think Phil missed an opportunity to discuss the potential benefits of going to an on-demand/OSS model for at least parts of the organisation and then made the comparison. As it stands, I'm with Jeff only I'd go further - Phil's argument is a non-argument. Having said that, I do believe SAP needs to think about which part of the overall apps stack mighd be better suited to an on-demand/OSS model. Finance? Not for SAP's slice - at least not core transactions where the customer is channel master. CRM? some aspects definitely, others no way. HR? admin yes, HCM, no. SCM? could be a great candidate in some areas, others, no. BI - forget it. Caveat - only if it makes sense on each and every occasion but broadly if there's more than a smidgen of collaboration involved then on-demand *could* bring dividends beyond the pute cost argument. If SAP is considering these issues in detail then articulating them would be good. Get the customers engaged in discussions that help them to learn and provide feedback to SAP. Something I don't see ORCL doing in any of its 'development.' Personally, I think Phil missed an opportunity to discuss the potential benefits of going to an on-demand/OSS model for at least parts of the organisation and then made the comparison. As it stands, I’m with Jeff only I’d go further – Phil’s argument is a non-argument.

Having said that, I do believe SAP needs to think about which part of the overall apps stack mighd be better suited to an on-demand/OSS model. Finance? Not for SAP’s slice – at least not core transactions where the customer is channel master. CRM? some aspects definitely, others no way. HR? admin yes, HCM, no. SCM? could be a great candidate in some areas, others, no. BI – forget it. Caveat – only if it makes sense on each and every occasion but broadly if there’s more than a smidgen of collaboration involved then on-demand could bring dividends beyond the pute cost argument.

If SAP is considering these issues in detail then articulating them would be good. Get the customers engaged in discussions that help them to learn and provide feedback to SAP.

Something I don’t see ORCL doing in any of its ‘development.’

]]> By: Jeff http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/comment-page-1/#comment-1404 Jeff Tue, 25 Apr 2006 04:19:42 +0000 http://jeffnolan.com/wp/2006/04/24/open-letter-to-phil-wainewright/#comment-1404 Peterson, I'd respond to you but logic doesn't appear to be your strong suit. Considering that SAP is growing at a rate well above Oracle and well above the market (which means we are taking market share from Oracle), I think I'm on pretty safe ground to suggest that SAP is winning the bidding war. With SAP tradiing at a 37 P/E vs. Oracle 24 P/E (and that's after the stock finally traded up in the last week), it would appear that investors also consider SAP to be the premium play. Peterson,
I’d respond to you but logic doesn’t appear to be your strong suit. Considering that SAP is growing at a rate well above Oracle and well above the market (which means we are taking market share from Oracle), I think I’m on pretty safe ground to suggest that SAP is winning the bidding war. With SAP tradiing at a 37 P/E vs. Oracle 24 P/E (and that’s after the stock finally traded up in the last week), it would appear that investors also consider SAP to be the premium play.

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