28 March 2007

So That's Why They Call the Company SAP

SAP AG will not be impacted by open source ERP software, chief executive Henning Kagermann is adamant.

Despite evidence of open source creep, Kagermann thinks it is still a database and OS-level model. He tackled the rise of open source in a recent interview with ComputerWire.

“It is an option for operating systems and databases but not at the business application level,” he said. “There are no open source ERP products that are any good for the high end, although it could be argued that they could be developed for the low end.”

So writes Angela Eager - who, parenthetically, used to work for me: wotcha, Angela.

Poor old SAP: the fact that proprietary software vendors in every market - including operating systems and databases - have said precisely the same thing when challenged by open source from below seems not to have penetrated the poor chap's skull. ERP is not special (and open source ERP is flourishing.)

So let's say it in easy-to-understand terms: you cannot defend yourself from low-end creep by pinning your hopes on up-market products. Try reading The Innovator's Dilemma to find out why.

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