SAP Watch

Apr 28 2008   9:37AM GMT

Report: Business ByDesign delayed

JackDanahy Jack Danahy Profile: JackDanahy

SAP will delay general availability of its Business ByDesign Software as a Service (SaaS) offering, according to German news source Handelsblatt. Given that SAP wanted Business ByDesign to bring in $1 billion a year by 2010, the delay represents a significant setback in SAP’s attempt to win a chunk of the lucrative SaaS market.

ByDesign is already out on a trial basis, but it hasn’t picked up as much traction as expected. At Cebit, SAP revealed that ByDesign had 150 customers. By contrast, SaaS market leader Salesforce.com claims 41,000 customers.

An SAP developer speaking to Handelsblatt claimed (in German) that ByDesign was suffering from performance issues and bugs that would delay general availability until perhaps the end of 2009. That gives Salesforce.com, NetSuite, and other SaaS vendors another eighteen months to keep dominating a market that none of the majors (including SAP, Oracle, and Microsoft) have been able to crack.

Demir Barlas, Site Editor

2  Comments on this Post

 
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  • JackDanahy
    Business ByDesign is probably becoming a victim of its own ambitiousness. Its aim to become an on-demand ERP and the colossus of the SaaS field is slowing it down. However, its delay gives other SaaS vendors some breathing space. They will need to be at their sharpest when the big daddy of all finally enters the SaaS market.
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  • JackDanahy
    True, Business ByDesign has lagged behind and invited some ridicule from Salesforce.com; however as an idea, it is very ambitious and will surely cause a shift in market dynamics given the already huge customer base that SAP has. It remains to be seen whether this will free the customer from vendor lock-ins or free him from it.
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