By William Fellows
Although ERP stocks are falling stars on Wall Street it’s clear, according to Credit Suisse First Boston, that factors other than Y2K are influencing the procurement landscape. An industry-wide platform change to the internet and the delay in Windows NT 5 – which has helped Unix – have each contributed to the malaise in enterprise infrastructure software stocks. Nevertheless the enterprise software flu will abate after Y2K, the bank thinks.
The failure of major ERP concerns to move into new markets such as supply chain has, CSFB estimates, given the likes of i2, Siebel and Ariba to achieve a critical mass. They are set to stay even when the major players catch up, the bank says. We think that despite the inroads made by these ISVs, the major enterprise software companies own enough infrastructure that new-comers will have to play within the economies they have created. The opportunity for every vendor is to think beyond the box and bring storage, ISP and other services into a solutions package. The integrators are talent magnets because service demand is till exceeding supply. However the large deal phenomenon is giving way to the smaller out-of-the-box solutions; packaged options that stocks which CSFB makes a market in like BEA, Brio, Micromuse, Citrix, Rational, Veritas and Neon are peddling.
