One of SAP’s first SaaS attempts shifting around

While some reports had that SAP’s Business ByDesign was being slowly shut-down, the Enterprise Irregulars list pointed out a Tweet from Vishal Sikka that it was more of a transition, one that will ROCK no less.

Whatever the case, and perhaps this is all rumors as well, here’s a good chunk of info from the original piece in Wirtschaftswoche (I don’t read German, so I’m just going off the Reuters story):

The magazine reported, however, that the product, which cost roughly 3 billion euros to develop, currently has only 785 customers and is expected to generate no more than 23 million euros in sales this year.

I like keeping up with these early cloud build-outs – it’s good foder for figuring out how large, incumbent tech companies do with updating their portfolios. Back at RedMonk James covered ByD pretty closely, here’s a piece from 2009. It seems like a really good way to go down-market. As I recall, there was a lot of in-housing of the technologies, which has always been SAP’s, well, “thing.” And the fact that they’re moving it to HANA is more of that. NIH doesn’t portend failure at all: Google is rife with NIH, building its own platforms and such.

The bigger thing to pay attention to is (a.) enterprise software vendors need SaaS versions, or at least versions that will take advantage of private cloud technologies to ease management and cost control, and, (b.) making a SaaS that’s “enterprise grade” is hard.

One of SAP’s first SaaS attempts shifting around

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