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SGHE and Datatel Merger
Iâ€™ll agree that I donâ€™t see a customer advantage at all in this merger. Higher costs most assuredly will present, and maintenance costs are already high. I also agree with Greg that these two platforms are very different and I just donâ€™t see how they complement each other. Entrepreneurs are already offering cloud-based â€˜subscriptionâ€™ plans, which is where I see the future. The major systems currently in place require enormous upfront costs, long implementation periods, substantial technical support in place, and substantial maintenance costs. I just donâ€™t see how that model is sustainable.
Course, my crystal ball is pretty cloudy . . .
Bruce W. Vieweg
Chief Information Officer
Interim Dean of Students
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From: The EDUCAUSE CIO Constituent Group Listserv [mailto:CIO@LISTSERV.EDUCAUSE.EDU]
On Behalf Of Greg Smith
Sent: Sunday, August 07, 2011 10:07 PM
Subject: Re: [CIO] SGHE and Datatel Merger
Our experience presented an end of life for our ERP so the alienation came from how Sungard assumed we would accept the path that they decided for us without a lot of value compensation for our existing software.
This merger is different though. I donâ€™t see a clear path for consolidation so I donâ€™t see this new company trying to steer the Datatel or Banner customers anywhere. There is an opportunity to sell some of their bolt-on solutions to each other. But I would
be worried that maintenance costs are not going down.
When they mention efficiencies of the merger, that is a bit baffling. Banner and Datatel are built on totally different platforms and they are very complicated. How do they share the important developer resources that are needed for re-engineering of the core product. How do they sell against each other? Hellman & Friedman are just trying to make money and I donâ€™t see any option for Datatel or Banner to become more valuable so that probably means they need to make as much as they can off the existing customer base.
When we selected PeopleSoft, part of our reasoning was to never have to deal with our ERP vendor being involved in these kind of ownership games.
Chief Information Officer
George Fox University
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