ITC Server

SaaS (Software as a Service) is a recent trend in enterprise software market. Wikipedia’s definition:

Software as a Service (SaaS, typically pronounced ’sass’) is a model of software deployment whereby a provider licenses an application to customers for use as a service on demand. SaaS software vendors may host the application on their own web-servers or download the application to the consumer device, disabling it after use or after the on-demand contract expires.

SaaS doesn’t seem SAP’s own strategy. SaaS is a trend; there are many players in this arena. SaaS market revenue was $5.1 billion in 2007. So SAP should have had a product in this market and SAP Business ByDesign has come to arena. SAP felt the pressure:

Nevertheless SaaS has been game-changing for the software industry. Pure-play ERP vendors are feeling the pressure as customers tire of expensive licenses and lengthy implementations, and turn to on-demand software. Vendors that have recognized the opportunity and made the move toward SaaS are having to adjust to new revenue models, with a steady stream of subscription-based income replacing the big bang of upfront license sales.

First applications and widely-used modules are CRM and HR in SaaS market. For example, PCC uses SAP R/3 but HR modules was not implemented. PCC uses Ceridian for HR needs. Ceridian is a kind of SaaS solution.

SAP claims that SAP Business ByDesign is for SME (Small and Midsize Enterprises). So what about SAP Business One?

I think that even a company doesn’t use a SaaS application; it is going to need to implement some applications as a service. SOA is SaaS’s brother. They will play big role in future enterprise environment.

Reference:
Software as a service [Wikipedia]
SAP Business ByDesign [Wikipedia]
Demystifying Software as a Service (SaaS) [SAP.info]
Business Center [SAP]

Tags: Business ByDesign, SaaS

This entry was posted on Tuesday, March 24th, 2009 at 9:03 am and is filed under SAP. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.