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Technology: SAP Fails with On-Demand ERP
SAP’s three effort to capture its share of the cloud is so far a failure.
The SAP on-demand timeline goes something like this:
Feb, 2006 — SAP announces that they will add an on-demand-option available via subscription
Jan, 2007 — SAP announces that it will invest $400-550 million over eight quarters to develop A1S, a “game changer”
The goal is to reach 10,000 customers per year from 2010.
Sept, 2007 — SAP unveils the product “Business ByDesign” to investors and journalists with prices starting at $149/user/month
April, 2008 — SAP modifies its rollout plan to focus on just six countries during 2008, with more to come on line in 2009
The goal of 10,000 customers per year will take 12-19 months longer than expected.
They will start with less than 1000 customers in 2008
May, 2008 — SAP announces 150 “customer engagements”.
March, 2009 — SAP announces that they are concentrated on a new business model to make the venture more profitable
Forrester Research analyst Stefan Ried called the SAP venture into on-line computing as a ‘disaster’. SAP tried to differentiate itself by providing a much richer ERP space than just CRM, but this has proved to be too ambitious of a project to get right on the first go around. Ried commented “if you ask me, they will look for an acquisition candidate in this space and trash everything they’ve done on their own.”
