» VIEW ALL POSTS Jun 10 2008   9:57AM GMT

SAP’s $150 million banking megadeal



Posted by: JackDanahy
Tags:
SAP

Canada’s ATB Financial is pursuing a $150 million project to rip out its legacy systems, some of which date back to the 1970s, in favor of SAP.

Given that SAP also added Bank of America as a customer earlier this year, the deal points to SAP’s growing strength in the North American segment of the banking sector. Like Bank of America, ATB appears to have conducted thoughtful diligence on its SAP. A thoughtful article in Bank Technology News points out that ATB took nearly a decade evaluating the market and testing the market before signing up with SAP, and is carrying clear-cut, achievable objectives into the deal.

Other firms considering SAP would do well to adopt the banking sector’s risk sensitivity to enterprise software adoption, which includes longer evaluation times, weighted functionality priorities, and unambiguous project objectives. ATB appears to have squeezed every last bit of scalability out of its thirty year-old legacy system before settling on SAP, which is an object lesson to companies who feel obliged to make major system switches every decade or so.

Like ATB, a lot of banks are running up on sunset dates for their old systems. All eyes in the industry must be on ATB to see how the SAP project goes, because it could influence a lot of upcoming purchasing decisions.

Demir Barlas, Site Editor

2  Comments on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
  • Yves
    Why don't we mention Accenture won this project?
    25 pointsBadges:
    report
  • Piegirl
    ATB is currently in the throes of their conversion to SAP. I am a customer in addition to being in the industry and this is certainly the roughest conversion I have ever experienced and ATB is taking a hit with its customer base as they push-back against all the problems. Having a hard time seeing the end of the tunnel and I am dismayed at the senseless design issues as a user. This may benefit the internal systems more than the customer interface, but without happy customers its hard to pay that $150 million ...
    0 pointsBadges:
    report

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: