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BY DESIGN BECOMING A PLATFORM

SAP's much heralded, much denigrated Business By Design is more than just a single product. It is the forerunner of a new generation products offered by the company, which primarily focus has been on enterprise-size organizations. While the mid-market-oriented BBD was only on the market in volume for two of the three months for the third quarter ended September 30, the outlines of the By Design enterprise products demonstrates that SAP is seeking a lot of revenue from this architecture.

During its earnings Webcast, the company announced Sales By Design, which is pointed squarely at Salesforce.com and which will debut early next year. SAP said only that there would be a variety of applications built on the By Design platform. Its current line produced good results in the quarter with revenue hitting roughly $4.2 billion an increase of roughly 20 percent over the prior year when measure in euros. Net income hit about $696 million, a 12-percent rise. Co-CEO Jim Hagemann-Snabe said it was too early to comment on BBD numbers, but noted that the product had been launched in six countries during the quarter and that the volume was growing sharply, but was still low. The company talked about having significant wins with BBD, but provided no details.
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