I walked the Sapphire booth space to catch up with a number of SAP services partners. There is a sense of excitement around SAP’s traction, though with an offshore vendor occupying every 3rd or 4th booth, there is a sense there are some "checks and balances" the ecosystem will not get as crazy as it did in the late 90s.
Some perspectives:
“We should expect to get a premium around SAP’s more recent CRM, SRM, Netweaver functionality”. I agree if a) you truly have those skillsets not just a training "spray paint" and b) the premium also needs to be on much more realistic pricing for older modules like FI, SD and MM – 2005 rates not 1998 rates
“We think PeopleSoft customers could lower their SOX and other compliance costs if they migrated to SAP” - was a response from a SAP partner to a question how a PeopleSoft customer could justify the significant migration cost to SAP. Talk about a low ROI project. I think the average company would spend less money lobbying for repeal of Sarbannes Oxley. It is good, though, that SIs are looking for payback areas - hopefully those with real savings.
“On BPO deals, the software value is coming in at lower than 5%”. I have predicted that BPO will cannibalize and commoditize software sales, but it may be happening much quicker than I projected
Finally, a PwC partner (now IBM) told me yes PwC people were leaving (see my blog about this) – but mostly the older generation which wanted to retire, and younger staff. The core partner group IBM bought is still intact, and in fact in key roles in IBM’s services unit.
