The Troposphere

Mar 3 2011   11:05PM GMT

Verizon and SAP: still two old guys at a rave?

JoMaitland Jo Maitland Profile: JoMaitland

Verizon is taking another run at selling SAP CRM as a service, this time with SAP’s Rapid Deployment Solution (RDS) on real cloud infrastructure. A year ago the two companies were selling the full SAP CRM package on traditional hosting. Imagine two old guys at a rave and you’ve got the picture. No one came to that party.

The new offering, available in the US only, is designed to be up and running in eight weeks, a much faster turnaround than traditional SAP installations that can take months. It’s priced on a per user per month subscription which Verizon said should work out at about $100 per seat. There’s also an implementation fee of $80,000 to $220,000 depending on which modules the customer wants.

SAP has other products in its RDS bag including supply chain, product development and HR software that Verizon expects it will also sell as cloud-based services at some point.

It’ll be interesting to watch and see if Verizon gets any traction selling this SaaS offering. It has enormous network reach and is developing cloud infrastructure anyway, so there’s very little financial risk in it selling Software as a Service.

For SAP, building out cloud infrastructure to sell its applications as a service would be super expensive, better to partner with the major network operaters and let them sell it for you.

Salesforce.com is the main competition here with several years head start. Can the old guys catch up?

3  Comments on this Post

 
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  • Garretsonr
    I'd be very curious about the performance characteristics of such a Verizon cloud offering. Just because it's a massive company that runs a huge telecom network doesn't necessarily translate into SaaS as a core competency. The providers that top the CloudSleuth [A href="http://bit.ly/fss5p0"]performance rankings[/A] have all been in the business for years. Last year's SAP offering from Verizon hasn't establish much of a track record. --Rob [A href="http://bit.ly/garretsonr"]About me[/A]
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  • JoMaitland
    Rob, What's the compentency of a SaaS provider would you say? Can Verizon and SAP develop this via partnering? Jo
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  • JoMaitland
    I meant core competency...
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