{"id":406,"date":"2007-10-08T07:00:46","date_gmt":"2007-10-08T15:00:46","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=406"},"modified":"2007-10-08T07:00:46","modified_gmt":"2007-10-08T15:00:46","slug":"saas-analysts-slam-saps-on-demand-initiative","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-analysts-slam-saps-on-demand-initiative\/","title":{"rendered":"SaaS:  Analysts Slam SAP&#039;s On-Demand Initiative"},"content":{"rendered":"<p>SAP CEO Henning Kagermann called it &#8220;the most important announcement I&#8217;ve made in my career.&#8221;  Henning called it a <span class=\"artText\">&#8220;complete solution&#8221; designed for &#8220;end to end, flexible, adaptable, business processes                      within the company and beyond the boundaries of a company.&#8221;<\/span><\/p>\n<p>SAP is hoping that the new platform will be adopted by more than 10,000 companies by 2010 &#8212; right now about 20 companies are using it.<\/p>\n<p>But analysts were quick to criticize SAP&#8217;s on-demand strategy.  The new platform is called &#8220;Business by Design&#8221; and is SAP&#8217;s first attempt at the SaaS market.  Comments included:<\/p>\n<p><a title=\"Forrester on SAP\" target=\"_blank\" href=\"http:\/\/www.infoworld.com\/article\/07\/09\/20\/missing-pieces-in-SAP-A1S-hosted-ERP_1.html\">Forrester<\/a>:  &#8220;Key features like easy access to reporting, quick portal construction, and easy integration to Office remain missing.&#8221;<\/p>\n<p><a title=\"InformationWeek\" target=\"_blank\" href=\"http:\/\/www.informationweek.com\/news\/showArticle.jhtml?articleID=201807501\">Information Week<\/a>:  &#8220;SAP will struggle because many  employees will fear that on-demand software will cannibalize sales of conventional software licenses.&#8221;<\/p>\n<p><a title=\"SAP on Internetnews.com\" target=\"_blank\" href=\"http:\/\/www.internetnews.com\/xSP\/article.php\/3700821\">Internetnews.com<\/a>: &#8220;SAP got immediate and what can only be called less-than-enthusiastic feedback from the very people it most hoped to please.&#8221;<\/p>\n<p><a title=\"Cohen and Company\" target=\"_blank\" href=\"http:\/\/www.internetnews.com\/xSP\/article.php\/3700821\">Cohen and Company<\/a>: Business by Design is &#8220;too horizontal to sell into the mid-market, particularly the low end of the mid-market which demands a high degree of vertical expertise.&#8221;<\/p>\n<p><a title=\"Microsoft on SAP\" target=\"_blank\" href=\"http:\/\/www.infoworld.com\/article\/07\/09\/20\/missing-pieces-in-SAP-A1S-hosted-ERP_1.html\">Microsoft<\/a>: &#8220;While we certainly recognize other vendors as formidable competitors, at the end of the day the SMB spot is our sweet spot. We&#8217;ve been servicing this space for years.&#8221;<\/p>\n<p><a title=\"IDC on SAP\" target=\"_blank\" href=\"http:\/\/www.computerworld.com\/action\/article.do?command=viewArticleBasic&#038;taxonomyName=enterprise_applications&#038;articleId=9038062&#038;taxonomyId=87&#038;intsrc=kc_top\">IDC<\/a>:  \u0093They need to have some kind of focus on what type of [small business] they are targeting&#8230; You wonder where all these [customers] are going to come from.\u0094<\/p>\n<p><a title=\"BusinessWeek\" target=\"_blank\" href=\"http:\/\/www.businessweek.com\/technology\/content\/sep2007\/tc20070919_181869_page_2.htm\">BusinessWeek<\/a>:  &#8220;If mishandled, SAP&#8217;s approach could present opportunities for competitors, including Oracle&#8230; Smaller rivals are also sniffing the same ground.&#8221;<\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" 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