• On mySimon: Top Gifts for Him, Her, Mom, Dad & More!
October 15, 2008 4:07 PM PDT

Ah, the irony! SAP freezes internal IT purchases

by Matt Asay
  • Font size
  • Print
  • Post a comment

There is a deep, rich irony to an internal SAP directive to immediately halt all new IT purchases, a directive revealed by the Wall Street Journal on Wednesday. SAP's co-CEOs sent out an e-mail with the following instructions:

We will review all planned investments in IT equipment, hardware, software, facilities, and company cars, as well as internal IT projects. Do not order any new equipment at this time.

CIO.com's Thomas Wailgum wonders if SAP expects its customers to do the same, even as it raises maintenance pricing and it and other vendors talk up IT as a way to innovate through a downturn. He's got a point.

Of course, SAP is simply trying to be prudent through a downturn, instituting a hiring freeze and ordering "Any non-customer-facing travel already booked should be canceled immediately, even if this incurs penalties." But its own fiscal prudence may inspire its customers to do the same, which can't be good for SAP.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
Recent posts from The Open Road
The 'wisdom of crowds' loses steam
Microsoft's embrace of MySQL could kill it
Apple: 'Enterprise' is as enterprise does
Theory of competition fails in open source, elsewhere
Microsoft's Web business spurring development of IE
The case for the open-source Goliath
Netherlands' open-source policy goes double Dutch
Why is Google Android beating Symbian?
advertisement

E-tailers linked to 'scam' blame customers

Priceline, Classmates.com, and Orbitz say customers should read the fine print before complaining about being charged to join loyalty programs they didn't want.

The 411 on early-termination fees

Verizon Wireless has doubled its early-termination fees for smartphones, but what does it mean for the rest of the industry?

advertisement

About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

Add this feed to your online news reader

The Open Road topics

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right