IDG News Service - SAP's on-demand ERP (enterprise resource planning) suite Business ByDesign "is not a fantasy," CEO Jim Hagemann Snabe said during a press conference Monday at the vendor's Sapphire conference, which is ongoing in Frankfurt, Germany, and Orlando. "It's a real product. We wanted to perfect the infrastructure. You only get one chance."
Snabe spoke as SAP gets ready to make Business ByDesign more broadly available in July in Germany, the U.S., the U.K., France, China and India.
SAP originally hoped to have 10,000 customers and $1 billion in revenue for the application in 2010. But in 2008, SAP realized it couldn't run Business ByDesign at scale in a cost-effective manner and slowed down the product roll out while figuring out a fix. To date, only about 100 early customers are using the application.
But now SAP says the necessary plumbing and rewiring work is complete. The upcoming Business ByDesign version 2.5 introduces an option for multitenancy, a key factor in making the software profitable. With multitenancy, a number of customers share the same instance of an application, with their data kept separate. This cuts down on overhead for equipment and simplifies system management for the vendor, particularly upgrades, which can be delivered to many users at once.
A single-tenant option will remain available, but at a higher cost. Pricing information was not disclosed.
The update, which is set for release early in the third quarter, also includes in-memory analytics that can be tapped via Microsoft Excel; mobile device support; a user interface built with Microsoft's Silverlight technology; and a development toolkit that will enable partners to build extensions. SAP said it intends to build a robust partner ecosystem around Business ByDesign.
Beyond building out a channel, one of SAP's biggest challenges for Business ByDesign is positioning: How can it attract customers without cannibalizing its own ample SMB-installed base for the on-premises applications Business One and Business All-in-One?
This is the official story: Business One is aimed at companies with 10 to 100 employees, said Rainer Zinow, senior vice president of SME strategic solution management. "These companies are at a size where they need a certain level of business processes, such as order entry, but don't need advanced planning and scheduling algorithms." Business One provides a "simple, server-based solution in-house, with support from a local partner."
Business All-in-One is essentially a packaged subset of SAP's high-end Business Suite, and is meant for companies with 1,000 to 2,500 workers, Zinow said. "They are at the same level of business process literacy as most large companies."
SAP is therefore pointing Business ByDesign at companies with 100 to 1,000 employees. These companies "are growing fast, and what they need most is a business process library," he said. "At the same time, these companies say 'I don't want an IT organization.'"
- Path Selection Infographic Path Selection Infographic
- Hyperconvergence Infographic A wide range of observers agree that data centers are now entering an era of "hyperconvergence" that will raise network traffic levels faster...
- Preparing Your Infrastructure for the Hyperconvergence Era From cloud computing and virtualization to mobility and unified communications, an array of innovative technologies is transforming today's data centers.
- Increase IT Performance from the Enterprise to the Cloud with WAN Optimization Massive consolidation and data mobility, enabled by virtualization, have radically altered how we build servers, design applications, and deploy storage for the emerging...
- Live Webcast
Transforming Finance, Procurement and Supply Chain Effectiveness with Cross-Functional Analytics
Date: May 6th, 2014
Time: 1 PM EDT
Attend this Webcast to find out how Oracle's packaged analytic applications enable line-of-business managers to examine all...
- Video Stream Quality Impacts Viewer Behavior This scientific white paper, using statistical data from Amakai's streaming network, analyzes how changes in video quality cause changes in viewer behavior.
- Service-Enabling CICS Applications: Best Practices This informative webcast provides an informed, thorough look into CICS service-enablement options and how they can affect your environment. You'll learn how to... All Applications White Papers | Webcasts