SAP Details SaaS Product Strategy

The enterprise apps king says it is committed to on-demand software and will release a new feature pack for its Business ByDesign offering in mid-2010.

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Posted on Dec 09, 2009

More than two years after announcing its Business ByDesign software-as-a-service product for the mid-market, SAP said on Tuesday that it would release a new version of the software by mid-2010 that features a full multi-tenancy model, in-memory analytics, and a software development kit to enable partners to create add-on applications.

SAP executives, speaking at the company’s annual Influencer Summit in Boston, a gathering of industry market analysts and journalists, sought to rebuff criticism that SAP isn’t committed to the on-demand market. They also provided new details of the company’s strategy for the mid-market as well as large enterprises.

“SAP sees on-demand as the next serious change in computing models,” said John Wookey, executive vice president of business solutions and technology at SAP Labs and the driver of SAP’s on-demand strategy for large enterprises. “We are very serious about on-demand. Innovation in on-demand is still largely in front of us.”

Business ByDesign, which was launched in September 2007, has undergone a number of significant changes. Eight months after the launch, SAP said it would moderate its rollout to improve self-service provisioning, upgrades, and system performance. In August of this year, SAP released the first major BBD upgrade, called feature pack 2.0, which was said to boost overall functionality by about 30% and included several new features for manufacturers, such as a procurement function that automatically generates requests for quotation. The company said recently that BBD will not enter general release until sometime in 2010. Fewer than 100 customers are live on the product, and, for now, its sale is limited to six markets: the United States, the United Kingdom, China, France, India, and Germany.

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