Sunday, October 16
Interview with a SAP Employee
Question : SAP in the comparative market- how has it fared so far and how is going to be in future:
SAP : What is important for us is that we gain share in market in q1. We compare ourselves with our peer group which is Microsoft on a yearly base because we have a different seasonality. Upto now in the last four years we are gaining share against them. So ask me again at the end of the year.
Question : Safe passage program which is recently added to the company and about how many customers you have added :
I think we added roughly 60 again .we have more than 500 now.
Question : How the competitive landscape may have impacted the deals you have not won ?
SAP : Yes its true, as you know we made some adjustment at the end of last year. Some technical adjustments just came in terms of deals. They were not too prominent. Hence we couldn’t close the deals at the end of last year. So I would say what we did in the first quarter is really business people brought in, in the first quarter.
Question : SAP Is known as a large enterprise company. Now you are focusing on the mid market. Now is this an area which you can continue to focus on and if so, what are you committed to spend.
Ya, roughly 10-20 million. It is really important know because if you put this into figures in terms of its operating margin increased and improved. We had an operating margin which was flat, which was established business which was half a percent to one percent.
Question : A1S and planning of ramping up of A1S
SAP : First of all we should know that our established business will continue to grow double digit. So what we try is a new product which will add additional revenue to our profitability. And we do it in a different way because we want this product to be entirely hosted. Once the product is ready we select the customers. We get very good feedback. But its not only about the product, but its also about the operation which has a lot of innovation in it. So I expect we will be ready for volume business in the first quarter of 2008 and then you will see first of all, is the revenue is coming slower in. that’s known because the subscription. But over a time the revenue will increase more and more. And I expect that our margin in 2010 will be higher than the margin we have earned today as an established business.
Question : Are you concerned about the reduction in spending that some experts are suggesting in the agent markets:
SAP : Im not worried. We are doing good business in china and india and japan. I have so far honestly no indications , india particularly the large enterprises which are traditionally our clients. From my point what I see is im confident on this agent market.
Question : What about the business options in the US, are you still seeing growth in the future:
SAP : The united states business was very strong ,which is more than 20% which I see is really strong. We are improving in our position in the US. You know that’s since many quarters we are the number one in the US and we continue to gain share there.
Question : ORACLE law suite filed against one of your subsidiaries tomorrow now:
Tomorrow now has a very precise business model. This business model is known, it follows the guidelines and rules and policies. So I see they are claims which I don’t understand . our lawyers are behind it. We will officially answer in the next weeks.
SAP : What is important for us is that we gain share in market in q1. We compare ourselves with our peer group which is Microsoft on a yearly base because we have a different seasonality. Upto now in the last four years we are gaining share against them. So ask me again at the end of the year.
Question : Safe passage program which is recently added to the company and about how many customers you have added :
I think we added roughly 60 again .we have more than 500 now.
Question : How the competitive landscape may have impacted the deals you have not won ?
SAP : Yes its true, as you know we made some adjustment at the end of last year. Some technical adjustments just came in terms of deals. They were not too prominent. Hence we couldn’t close the deals at the end of last year. So I would say what we did in the first quarter is really business people brought in, in the first quarter.
Question : SAP Is known as a large enterprise company. Now you are focusing on the mid market. Now is this an area which you can continue to focus on and if so, what are you committed to spend.
Ya, roughly 10-20 million. It is really important know because if you put this into figures in terms of its operating margin increased and improved. We had an operating margin which was flat, which was established business which was half a percent to one percent.
Question : A1S and planning of ramping up of A1S
SAP : First of all we should know that our established business will continue to grow double digit. So what we try is a new product which will add additional revenue to our profitability. And we do it in a different way because we want this product to be entirely hosted. Once the product is ready we select the customers. We get very good feedback. But its not only about the product, but its also about the operation which has a lot of innovation in it. So I expect we will be ready for volume business in the first quarter of 2008 and then you will see first of all, is the revenue is coming slower in. that’s known because the subscription. But over a time the revenue will increase more and more. And I expect that our margin in 2010 will be higher than the margin we have earned today as an established business.
Question : Are you concerned about the reduction in spending that some experts are suggesting in the agent markets:
SAP : Im not worried. We are doing good business in china and india and japan. I have so far honestly no indications , india particularly the large enterprises which are traditionally our clients. From my point what I see is im confident on this agent market.
Question : What about the business options in the US, are you still seeing growth in the future:
SAP : The united states business was very strong ,which is more than 20% which I see is really strong. We are improving in our position in the US. You know that’s since many quarters we are the number one in the US and we continue to gain share there.
Question : ORACLE law suite filed against one of your subsidiaries tomorrow now:
Tomorrow now has a very precise business model. This business model is known, it follows the guidelines and rules and policies. So I see they are claims which I don’t understand . our lawyers are behind it. We will officially answer in the next weeks.
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