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SAP Cites Functionality, Cost Structure in Modified On-Demand Product Rollout

Posted on Sunday, May 25, 2008 5:00:00 AM       Sign Up to receive Daily News Alerts in your E-mail Inbox                            Digg This Article   Add to Delicious

Abstract:SAP scales back its original plans for its new on-demand product, Business ByDesign, including a modification of its investment levels in the product, functionality, and the cost equation for customers.
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When SAP formally introduced its new Business ByDesign on-demand software last September, company officials described it as a "first edition" product.

Nine months later, Business ByDesign is clearly in its second printing. Just several days before its annual Sapphire user conference was to convene in Orlando, FL, in early May, the software giant said it would "modify the rollout strategy" for the product. This modification included rethinking BBD's functionality, the company's investment levels in the product this year, and the cost equation for customers.

As a result, SAP said it would take 12 months to 18 months longer to reach $1 billion in revenue with BBD, the original target for which was 2010. The company also had anticipated 1,000 BBD customers this year. At Sapphire, SAP reported that it has 150 "customer engagements" with the product.

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