SAP Business ByDesign is expected to help midsize businesses reduce their TCO under a per-month pricing structure that starts at $149 per user. The pricing of Business ByDesign is very competitive, noted AMR Research senior analyst Simon Jacobson, but “only over time will we really be able to see what the long-term tangible benefits are.”

SAP has unwrapped a new on-demand business software platform targeted at midsize companies (100 to 500 employees) looking to simplify their I.T. requirements while improving the efficiency and flexibility of their business processes.

According to the Germany-based software giant, there are more than 60,000 such companies in the U.S. and Germany alone. Moreover, the company pegs the worldwide market potential of the new offering at more than $15 billion.

With the rollout of SAP Business ByDesign, formerly codenamed A1S, the software-maker is moving to a new service-oriented architecture (SOA) for building applications out of services that otherwise would be intrinsically unassociated units of functionality.

With SAP Business ByDesign, “the technical advantages of SOA enter the level of business processes and allow customers to exploit the full potential of new business trends without becoming I.T. experts,” said SAP CEO Henning Kagermann.

SAP Business ByDesign is expected to help midsize businesses reduce their total cost of ownership under a per-month pricing structure that starts at $149 per user (with a minimum of 25 workers) and includes software, infrastructure, services, and support. Moreover, customers in need of limited access will be able to realize further cost savings, the company said.

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Compared to NetSuite, SAP Business ByDesign is substantially behind the curve. With NetSuite’s longer standing development platform and rates almost half as much, it will be difficult for SAP to gain ground in this industry which is becoming very competitive. The work is just starting for SAP, which faces a long ramp up period and a lengthy process to to refine their product and go-to-market strategies.

This article brought to you by ICON Technology Solutions. Find us at www.icontsi.com. Oklahoma, Arkansas, and Kansas’ 1# Netsuite integrators of on-demand web-based CRM, ERP, and Accounting SaaS solutions.

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