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SAP: BBD HITS IN VOLUME MID YEAR

SAP logoThe protracted introduction of BusinessByDesign, SAP's SaasS offering is grinding to a close. As the company announced its results for the year ended December 31, officials said the product will hit the market in volume in mid-2010, but got no more specific than that.
As mentioned in prior newsletters, SAP has recently hired a North American channel executive and reports are circulating that it is recruiting Business One VARs to carry BBD. Beyond that, probably the best thing that could be said about results was that they weren't awful. Total revenue fell by 8 percent from 2008 while software revenue was down 28 percent. However, sales picked up so that in the fourth quarter, software license revenue was off by only 14 percent. It's a testament to the kind of year it was that I can say "only" when talking about a 14 percent drop. The good news was support, usually a faithful source of income for software vendors, with that revenue rising by 11 percent, and subscription revenue was up 16 percent over the prior year. While subscription revenue is clearly the wave of the future, it's still a relatively small part of the SAP pie. And even better news was that fourth quarter software license revenue for the Americas rose by 4 percent. Interestingly, the company, admitting it rarely says much about Business One, noted what it felt was a good performance for that SMB product, although no numbers were provided.
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