03:38 PM
Doug Henschen
Doug Henschen
Connect Directly

SAP Cloud Platform, App Store Set For 2011

On-demand portfolio will also gain line-of-business extension applications and Business ByDesign For Subsidiaries.

SAP executives insisted the company is taking its own path to cloud computing and not just copying others. Business ByDesign stands out from competitors in that it covers a full suite of application functionality rather than just ERP or CRM, executives pointed out. Thus it will support a broader range of on-demand applications, they said.

Executives also stressed that SAP's platform will support a hybrid world in which companies blend on-demand and on-premise approaches.

"Our differentiator is the richness of the platform and the ability to tap into SAP's on-premise infrastructure," said Jeff Stiles, senior vice president of On-Demand Solutions.

Support for hybrid integration is key to SAP Business ByDesign for Subsidiaries, yet another release expected to roll out gradually during the first half of 2011. This distinct, partner-supported version of BBD will enable large organizations with on-premise SAP Business Suite deployments at headquarters to set up tightly integrated, yet localized on-demand deployments among far-flung divisions and subsidiaries.

"We've been working on this, but in the third quarter we were bowled over by demand from large customers," said Peter Lorenz, executive vice president of SAP On-Demand Solutions.

The next two upgrades of BBD, expected in January and June 2011, will add support for subsidiary deployments. SAP is working with "co-innovation" partners that are likely to lead the hybrid deployments.

BBD for Subsidiaries will give SAP an option for customers that might otherwise choose lower-cost vendors rather than extending SAP on-premise deployments. Competitors including Microsoft Dynamics and NetSuite have pitched their systems as a lower-cost alternative for SAP customers who need ERP deployments at divisions and subsidiaries.

SAP's critics say the company has dragged its feet on cloud computing in order to protect its legacy on-premise business. The depth and breadth of plans and investments detailed this week suggest that SAP has a deep commitment and a long-range plan for an on-demand future.

Compared with the likes of, SAP has a long way to go in terms of actual cloud market penetration. But there are signs the company is gaining momentum.

2 of 2
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Google in the Enterprise Survey
Google in the Enterprise Survey
There's no doubt Google has made headway into businesses: Just 28 percent discourage or ban use of its productivity ­products, and 69 percent cite Google Apps' good or excellent ­mobility. But progress could still stall: 59 percent of nonusers ­distrust the security of Google's cloud. Its data privacy is an open question, and 37 percent worry about integration.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of October 9, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll