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SAP Finally Takes On-Demand Plunge

Posted on Thursday, February 02, 2006 6:25:00 PM       Sign Up to receive Daily News Alerts in your E-mail Inbox                            Digg This Article   Add to Delicious

Abstract:Enterprise software giant debuts CRM application service aimed initially at medium- and large companies that offers basic contact and sales pipeline management capabilities; marketing and service management functionality expected later in the year.
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    NEW YORK, PALO, ALTO, CA -- ERP giant SAP AG, as expected, today launched its first hosted, on-demand application service, a version of its mySAP CRM offering that, company officials and observers said, is clearly aimed at existing medium- and large-size SAP customers rather than the smaller companies most often targeted by competitors Salesforce.com and NetSuite Inc.

    "SAP is clearly just addressing its existing customers with this offering," said Rob Bois, a research director at AMR Research Inc. (Boston). "Salesforce, Oracle, and others must be breathing a sigh of relief."

    Yet while Shai Agassi and other SAP executives readily admitted that the new application service is aimed mainly at the high end of the mid market, they did not portray that strategy as necessarily permanent. "No one has said that we will only stay in that area," said Agassi, president of SAP's Product and Technology Group, in remarks during the question and answer session following the announcement.

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