Friday, April 15, 2005

Lawson Systems Review

OK - so I never mentioned Lawson until the last post. They are definitely one of the major vendors in the enterprise HR space, but I've always had concerns about them. My personal opinion is they are a prime takeover candidate by Oracle or SAP. Here's why:

1) I haven't seen their latest numbers, but in 2nd quarter of 2005 they had a $3.6 Million net loss,
2) License revenues were down 34%,
3) Product pricing dipped by 10%,
4) They laid off 10% of their workforce.

As a service and development organization they are actually pretty good. Their customers rave about them and the functionality is solid. In fact, the user interface is pertty flashy and cool. However, they are a little fish trying to compete with behemoths and their strategy is simply not working.