Software Maker SAP Wants To Make Cloud Products More Flexible
May 15 2012 - 8:39AM
Dow Jones News
Business software maker SAP AG (SAP.XE) plans to make its
cloud-computing product lineup more flexible to meet customers'
needs, executive board member Lars Dalgaard said Tuesday.
While there is nothing wrong with SAP's Internet-based Business
ByDesign software suite product, it isn't suitable for customers
who only want certain single applications, Dalgaard said at a press
briefing.
"There are going to be mini suites," Dalgaard, who was appointed
to SAP's senior management board last month, said.
Cloud services, which provide access to vast amounts of data and
software stored on the Internet, are growing fast as they are less
expensive and easier to use than comprehensive on-site
installations.
SAP's Business ByDesign business software suite is targeted at
smaller companies and was once planned to become a major driver of
SAP's cloud computing offering, able to run accounts, human
resources, sales, procurement, customer service and supply chain
all on a single, cloud-based software package.
It was launched in September 2007 with the aim of reaching
10,000 customers by 2010. However, SAP scrapped the target just
over six months later due to issues with performance and cost. The
package was relaunched in summer 2010, but by the end of 2011 had
only attracted about 1,000 customers.
The big boost for SAP's cloud footprint came with the $3.4
billion takeover of U.S. firm SuccessFactors Inc., which offers
software that helps companies manage their employees and carry out
performance reviews.
The acquisition was closed earlier this year, with
SuccessFactors Chief Executive Dalgaard now leading the cloud
business at SAP. Dalgaard said Tuesday that he is focused on
growing the business organically.
-By Philipp Grontzki, Dow Jones Newswires; +49 69 29 725 107;
philipp.grontzki@dowjones.com
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