SAP gives in to online

SAP, the financial software providers, has announced it will provide online technology applications to run alongside its traditional software in a u-turn from previous statements that online software was 'more expensive and riskier'.

'On-demand is the next stage in applications development, the next stage in technology – and I think it is important to hear SAP say that the future of the company is tied to successfully develop and market on-demand. SAP believes in on-demand and so does the SAP Board,' said vice president of SAP John Wookey, at the OnDemand Europe conference in Amersterdam yesterday.

This is a dramatic u-turn for the company as earlier this year president and chief executive of Americas, Bill McDermott, said online applications were not yet suitable for larger organisations adding it was currently ‘harder, more expensive and riskier’ than traditional technology.

McDermott added in the Information Week interview that there could be a backlash for online or Software as a Service providers from business customers as 'disillusionment sets in.'

VP Wookey said SAP would continue to provide its usual software packages but would now add online modules to expand its large enterprise on demand applications.

The first products are expected to be released in the third quarter of this year with expense management systems to be rolled out next year.

SAP may have decided to back track on its SaaS stance following falling profits and increased competition, VNUnet reported.

Further reading:

Online software 'more expensive and riskier' says SAP CEO