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Eye on small business, SAP tests on-demand software

Eye on small business, SAP tests on-demand software
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First Published: Wed, Mar 18 2009. 05 46 AM IST

Updated: Thu, Mar 19 2009. 01 54 PM IST
Bangalore: The world’s biggest business software maker, SAP AG is testing its on-demand software product targeted at small and medium businesses with 100 customers, including several firms in India.
The product called ‘business by demand’ is already behind schedule, and the firm is yet to decide on business model that will be profitable by offering it on rent.
“We need a price which is competitive in the market,” said Jim Hagemann Snabe, board member of SAP, in an interview.
Volumes game: Jim Hagemann Snabe, member of the executive board, SAP, did not disclose pricing or launch details. Hemant Mishra / Mint
He, however, did not disclose at what price or when the product would be offered in the market.
In 2007, SAP announced that the software as a service product would be available to customers the next year. Traditionally, SAP, which competes with Oracle Corp, sells software licences for large companies to run their businesses, and provides support.
But in the current economic situation, large customers are either delaying or cancelling large software usage plans, forcing firms such as SAP to look at small and medium businesses in a market fragmented because of local players.
“That is why we are eager to get the total cost of ownership equation perfect before we go with volumes,” said Snabe. “Once we are out there, it is hard to correct after that”.
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First Published: Wed, Mar 18 2009. 05 46 AM IST