SAP, Microsoft draw battle lines

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All Microsoft, All the Time

Just more pieces of the complete Microsoft solution for business.
SAP offers business applications, Microsoft offers more than that. They can reallocate prices of individual products any way they want, and charge enough in total to make the profit they want.

SAP can't attack Microsoft as hard as they might; they need to cooperate. Microsoft doesn't need to attack SAP directly; they will already have the ability to talk with clients who need other software from them. This means Microsoft can slowly accumulate wins, adding profits without fanfare.

Microsoft's last barrier is companies with large IT staffs working on specialized, home-grown software. That's where Open Source fits, as well. But every time such a large staff is broken up by outsourcing, off-shoring, all the other ways companies have found to save costs by cutting out their own IT, Microsoft has a potential opportunity if IT moves back in-house. This is admittedly distant, but eventually Microsoft will be able to compete with purchased IT on total cost, staff included. And when that happens, another big part of IT will gradually become 100% Microsoft.

Posted by: Anton Philidor   Posted on: 12/10/03 You are currently: a Guest | Members login | Terms of Use

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