06.16.04
Chinese
ERP leader edges into US outsourcing market
One of China's leading local ERP vendors opened its first US offices
last month but doesn't plan to hawk its wares in the highly competitive
enterprise applications market there. Instead, Kingdee International
Software Group hopes to use its expertise with the Chinese market
to position itself as a consulting partner and outsourced labour provider
for US companies.
Headquartered in Shenzhen, China, 11-year-old Kingdee brought in 365.6
million renminbi ($US44.1 million) in revenue last year. Market researcher
IDC places Kingdee in the number two position in China's ERP market,
with an 11% share of the market in 2002, the most recent year for
which IDC has issued a report. The company has 50,000 customers in
China using its ERP and CRM software, which includes separate suites
aimed at enterprise and midmarket customers, a Kingdee spokesman said.
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Will
the Real ERP Players Please Stand Up?
The fact that Microsoft and SAP considered merging last year -- then
abandoned the idea -- may figure importantly in Oracle's ongoing battle
with the Department of Justice over its attempt to take over PeopleSoft.
DoJ's antitrust arguments make assumptions about which companies are
dominant players in the business-applications market.
During the course of pretrial discovery in Oracle's litigation over
the Department of Justice's efforts to block its hostile takeover
of PeopleSoft, Microsoft revealed that it held discussions with SAP
over a potential merger.
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Customers
Question Microsoft's ERP Intentions
Following reports that Microsoft delivered a sworn statement to the
Department of Justice (DOJ) earlier this year claiming it had no intentions
to enter the enterprise ERP market for at least two years, some company
watchers were skeptical. But given Monday's disclosure by Microsoft
that it held merger talks late last year with ERP market leader SAP
AG, Microsoft's customers and partners are scrutinizing even more
closely Microsoft's marketing claims.
Microsoft issued on Monday a brief public statement acknowledging
that it held exploratory merger talks with SAP. In the statement,
Microsoft officials said the negotiations broke off "a few months
ago due to the complexity of the potential transaction and subsequent
integration."
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Vendor
support main reason for buying ERP system
Supply chain, e-commerce capability, customer management. These are
what companies look at when buying an enterprise system.
Well, no. According to a new report from research firm Meta Group,
the most important criteria for firms buying enterprise resource planning
(ERP) applications are the vendor's stature as a long-term partner
and the vendor's support capabilities.
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SAP
to build Pepsi's ERP system
SAP AG added another Fortune 500 company to its customer list today,
when PepsiCo Inc. said it will standardize its global consumer goods
empire on the mySAP Business Suite.
Purchase, N.Y.-based PepsiCo hasn't previously had a companywide ERP
system, according to spokesman Mark Dollins. Units the company built
through acquisition, such as Frito-Lay, Tropicana and Gatorade, are
still running the business applications they selected as independent
companies.
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Defense
Department Picks ERP Implementation Vendors
The Department of Defense said Tuesday it has awarded a group of major
IT services vendors the right to compete for what could be up to $5
billion in software-implementation contracts over the next five years.
The department announced the so-called blanket purchase agreements
with Accenture, BearingPoint, Computer Sciences Corp., Deloitte Consulting,
and IBM. Under the agreement, the vendors will compete for individual
contracts to implement business software from Oracle, PeopleSoft,
and SAP that will be used as part of an enterprise-resource-planning
system that the Defense Department is building. The contracts will
run through 2009.
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