SAP: Business ByDesign SaaS Is 'Mature' - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud
Commentary
3/13/2009
12:13 PM
50%
50%

SAP: Business ByDesign SaaS Is 'Mature'

SAP has been pretty quiet on Business ByDesign, its hosted business software service in development, but expect to hear more about it within the next few months. SAP told me today that Business ByDesign has reached a "mature" stage in its development.

SAP has been pretty quiet on Business ByDesign, its hosted business software service in development, but expect to hear more about it within the next few months. SAP told me today that Business ByDesign has reached a "mature" stage in its development.I shot an e-mail to SAP this morning following a Bloomberg story I read online with the peculiar title, "SAP to Cut Workforce in Rental Software Project, FTD Reports." Bloomberg reported that Financial Times Deutschland reported that an SAP spokeswoman said (stay with me!) that the company would reduce its workforce in that area to 1,800 from 2,600 "as large parts of the software are already developed…[and] SAP will transfer most of the programmers to its flagship project Business Suite."

I suspected this "rental software project" was Business ByDesign, and here is the e-mail response I got from an SAP spokesman:

"This is simply a reallocation of some development resources from Business ByDesign to Business Suite and other areas. The 'development' of Business ByDesign is now much more mature than in the early stages and therefore the development resources required are fewer than before. We now have the necessary number of people on Business ByDesign to continue to innovate around the solution, and are leveraging development expertise and know-how from the Business ByDesign efforts in other development areas across the company. This is long-planned and consistent with existing strategy."

Note the part about "leveraging development expertise and know-how from the Business ByDesign efforts in other development areas across the company," and remember that SAP recently hired former Oracle executive John Wookey to develop SaaS-like modules for core ERP systems.

Some might jump to the conclusion that this means SAP is shifting resources from pure SaaS to more of a "software plus services" strategy as it sees more potential for the latter. Or, as SAP implies, it simply only needs 70% of the resources it previously had working on Business ByDesign. Either way, expect SAP to bring more clarity to its SaaS strategy, on or around the time of the SAP user group's Sapphire conference in Orlando, Fla., in early May.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll