Wednesday, October 15, 2008

Business Technology : SAP's Big Freeze


SAP announced last week that its revenue for the quarter would fall short of its guidance due to a sudden drop in orders at the end of September. That sent the company into cost-cutting mode, as outlined in an email co-CEOs Henning Kagermann and Leo Apotheker sent to staff last week. A copy of the email was obtained by the Business Technology Blog.

The party line in the tech industry is that businesses will keep spending on tech because it makes them more efficient. This, in turn will help them survive the downturn. We’re not sure whether to file this under irony or hypocrisy, but SAP is – you guessed it – halting new spending on information technology. “We will review all planned investments in IT equipment, hardware, software, facilities, and company cars, as well as internal IT projects,” the co-CEOs wrote in the email. “Do not order any new equipment at this time.”

Business Technology : SAP's Big Freeze

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