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SAP INTROS BBD IN VOLUME

SAP LogoSAP finally hit the market in volume with its long-delayed SaaS-product, Business By Design. The official announcement bills the new Business By Design as providing "the mature customer lifecycle management capabilities necessary to support a large volume rollout and reduce the cost of delivery." It also provides multi-tenancy. Tools for ramping sales up quickly include start packages that offer standard features at fixed implementation prices.

SAP says the scope of these can be expanded as businesses grow and are available for as few as 10 users. There’s a CRM starter package with an $89 per month per user subscription cost and the $13,500 implementation tag. The ERP kit has a $149 subscription price and an implementation price of $37,500. The professional service provider offering has a $149 subscription price, but the implementation charge is $45,000. Some very good resellers have had positive comments off the record about BBD, but they haven't signed on yet. One of the most stringent reactions came from NetSuite CEO Zach Nelson, a SaaS rival, who was in fine form in trashing SAP for essentially releasing BBD in the summer to avoid attention. As to the version number, Nelson commented "It’s really version 7.5; one of these days they’ll release version 1.0 when they feel they are ready." In a NetSuite earnings call, Nelson was given a chance to tee off on in-memory databases, a technology that SAP has been pushing all year as a major change in computing. Nelson's view? "It’s a total red herring. Everybody runs their database in memory. It’s a complete smoke screen, really." Personally, I think SAP has the resources to make life tougher on NetSuite even if the product doesn't cure cancer.
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