Do we think SAP is a dying ERP and won’t be able to compete as more “custom” SaaS solutions that are more tailored to a customers needs are popping up more frequently and a lot cheaper?

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No. Choosing an SAP or Oracle suite makes it easier for the company to find talent with background in using the tool. Niche/fit-for-purpose tools work best as an extension of the ERP if industry-leading—but that’s an exception to leading practice

When I’ve seen customers “go cheap” by choosing a vendor with less market share, they often struggle to find either employees or consultants/contractors that can run the tool at a salary/fee that the company can use——and then people are back to working only in excel and management is back to not having data for decision making

The miss in the upfront analysis is usually a total cost of ownership that includes finding more highly paid talent to run a niche tool. Big houses have a hard to approximating and the niche tool sales team will propose unrealistically low admin/training burden

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Usually firms start with a smaller ERP, and move to SAP/oracle. So unless there is a paradigm shift surrounding ERPs, larger firms won’t be switching anytime soon.

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