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SAP to reduce R&D budget
The SW behemoth wants to reduce it’s development cost. according to an interview in financial time (de), the goal is 12% of the sales volume. Mr Kagermann mentions that the current R&D budget of 14% would be to much especially compard against competition. He adds, that this isn’t a move to further outsource R&D. reminds me at mid 90’s when DEC had about 27% R&D cost, and compared it against other having about 10%. At DEC, this started a new round of budget wars, and reductions of a couple of good projects. I hope that SAP doesn’t follow this path, as in todays market it’s really hard to differentiate yourself against others, and which department would be better qualified as think tank. But maybe it’s just the first pavement of Mr Apothekers road to leading the company. He’s the first coming with a sales background. Until today all had some engineer related education….
Update
theregister reports that the UK SAP User group foments revolt over massive price hike.