SAP acquires Pilot Software
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SAP said that Pilot Software's core product, the business analytic application PilotWorks, will be integrated into its NetWeaver suite.
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(InfoWorld) - SAP has christened itsÂ suite of hosted ERP softwareÂ for the midmarket SAP Business ByDesign and said it will be available initially in the U.S. and Germany, with the U.K., France and China to follow soon after. Pricing for the service in the U.S. starts at $149 per user per month for a minimum of 25 users, including services and support, SAP said. Customers also pay $54 per month for each group of five "efficiency users," or casual users who access the software only to fill out expense reports and purchase confirmations, for example. SAP CEO Henning Kagermann presented the first demonstration of the product, formerly known by its code name A1S, at an event in New York Wednesday morning, calling it "the most important announcement I have made in my career." SAP has said it will invest â¬300 million to â¬400 million (about $400 million to $550 million) by the end of 2008 to support the introduction of the service, including a consumer marketing campaign on the Web to alter the perception of SAP as a provider of software for big businesses. SAP Business ByDesign aims to offer the gamut of ERP (enterprise resource planning) capabilities in a service affordable and simple enough for use by businesses with 100 employees to 500 employees, Kagermann said. The capabilities include manufacturing, purchasing, accounting, sales and marketing and human resources. The software is live today at 20 customers in Germany and the U.S., including a small aircraft manufacturer, a manufacturer of air fresheners, a technology consulting company and a company that offers packaging and distribution services to pharmaceutical companies. It still wasn't entirely clear from SAP's statement when the average business will be able to sign up for the service, but a safe bet for most countries appears to be 2008. SAP is "currently engaging with pilot customers" in the U.S. and Germany and "validating" the product with customers in the U.K., France and China, it said in a statement. Next year it will offer the service in additional markets including Australia and India in the Asia-Pacific; Italy, the Netherlands, the Nordic region and Spain in Europe; Canada and Mexico in the Americas; and South Africa. Other countries will follow in 2009. The company has said it hopes to open a new market for ERP among companies that rely today on spreadsheets and other individual programs to run their businesses, and were put off ERP in the past by its price and complexity. Analysts say the challenge will be to offer a product that's easy for companies to configure but which meets the needs of their individual business.
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InfoWorld - In a move to strengthen its portfolio of analytic applications, SAP has agreed to acquire privately held Pilot Software, a maker of strategy management software based in Mountain View, California.
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SAP and Business Objects have announced the first joint products from their merger, although the planned tight integration of the companies&#39; software will take longer to achieve.SAP agreed to pay $6.8 billion for the business intelligence vendor in October. It has now secured more than 87 percent of Business Objects&#39; shares, more than enough to control the company, CEO Henning Kagermann said at a press conference on Wednesday.Business Objects is now a division of SAP led by its former CEO, John Schwarz. The plan is to integrate its analytics technology more tightly with SAP&#39;s business applications, but also to keep selling standalone products that work with other vendors&#39; software.&quot;While we&#39;ll clearly align ourselves to SAP, we are equally committed to non-SAP customers, platforms and environments,&quot; Schwarz said. &quot;Our intention is to have a business intelligence solution on top of Oracle that&#39;s better than Oracle&#39;s own business intelligence solution.&quot;The companies announced nine software packages that will go on sale this month and combine products from Business Objects and SAP. They include Financial Performance Management, Governance, Risk and Compliance, and Visualization and Reporting.The financial package, for example, includes strategy management and planning tools from SAP and financial consolidation and profit management tools from Business Objects, said Doug Merrit, the head of SAP&#39;s Business User division.Those products were already sold separately, and the packages don&#39;t involve any significant integration work. They are intended to give the companies&#39; sales teams something to go out and sell -- although customers should also see a pricing benefit compared with buying the products separately, Schwarz said.The long-term goal is to integrate the companies&#39; software more tightly to form what Kagermann called a &quot;closed loop.&quot; The idea is that SAP users, acting on information from Business Objects&#39; analytics tools, will be able to more quickly adjust underlying business processes running in SAP Netweaver, Kagermann said.SAP will also offer Business Objects&#39; tools as part of its new suite of on-demand business applications for medium-sized enterprises, called Business ByDesign. The team developing Business ByDesign &quot;will be able to pick the best from the Business Objects portfolio and merge it into Business ByDesign,&quot; Kagermann said.Business Objects already offered its products on demand and had 70,000 subscribers at the time of the acquisition, Schwarz said. The job of merging the BI tools into Business ByDesign has not yet started, however, he said.Business ByDesign is still very new. SAP aimed to have about 100 customers live on the system by the end of 2007, a modest target, and its goal for 2008 is &quot;to prove that we can build a profitable volume business,&quot; Kagermann said.SAP&#39;s news coincided with the announcement from its biggest rival,&#160;Oracle, that it reached a deal to buy middleware vendor BEA Systems for $8.5 billion.BEA is in a different business from Business Objects, but Oracle&#39;s move to expand itself further through another big acquisition only helps to validate SAP&#39;s decision to acquire Business Objects. It was the biggest deal in SAP&#39;s history and broke the vendor&#39;s tradition of not acquiring large companies.SAP bought Business Objects for its technology, not its customers, Kagermann said Wednesday, although he sounded pleased about the new customers that SAP will gain.&quot;After you eliminate the joint customers, we&#39;ll have by far the largest installed customer base in the world. There will be probably more than 60,000 customers using one of our products,&quot; he said.Asked about the BEA deal, Kagermann seemed reluctant to be drawn away from discussing SAP&#39;s own merger, but he did take a quick jab at his rival.&quot;So far we are competing very successfully in the market,&quot; he said. &quot;I was a bit surprised [by the BEA acquisition] because Oracle has said they are the leading technology company, and now they are acquiring technology, which is interesting to me.&quot;SAP Deputy CEO Leo Apotheker was more outspoken. &quot;He has to pay more and more for less and less,&quot; he said after the press conference, referring to Oracle CEO Larry Ellison. BEA is &quot;not really that big,&quot; he said.Kagermann reiterated that SAP&#39;s strategy is to grow its core businesses -- applications and middleware -- organically, but it won&#39;t rule out another big acquisition to strengthen the company in a new market.
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InfoWorld - SAP and Business Objects have announced the first joint products from their merger, although the planned tight integration of the companies' software will take longer to achieve.
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SAP on Wednesday introduced a long-delayed line of Web-based business management software for mid-sized companies.
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The deal is the latest in a stream of takeovers for Oracle as it seeks to surpass SAP of Germany in the market for business analysis software.
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InfoWorld - In search of new markets and customers, SAP AG is developing a new breed of hosted, on-demand products and looking at ways to make its complex business software easier to use.
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SAP acquired Norwegian software company iLytix Systems earlier this month in a move aimed at introducing a new business intelligence (BI) tool to its small business product suite, Business One. The tool, XL Reporter, enables Business One users to export data to Microsoft's Excel program without having to reformat each report. It also allows them to create new financial and business reports or modify existing ones, schedule reports for automatic delivery, and create "what if" scenarios quickly with new point-and-click and drag-and-drop features.
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SAP is rolling out a new set of Java and business intelligence enhancements to its NetWeaver middleware and integration stack.
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Delivering on a promise made earlier this year, SAP has unveiled the first set of products to help businesses meet their compliance requirements, in addition to announcing a marketing agreement with Cisco Systems.
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(InfoWorld) - SAP continued to ramp up its on-demand CRM offering this week, announcing that it will now include service-level capabilities, the third key component of CRM solutions. In February SAP kicked off its software as a service business with a sales force automation solution. In May the company added marketing, and in its third update within the year it is now announcing SAP Service. Liz Herbert, a senior analyst at Forrester Research, said that the SAP CRM solution is now displaying the kind of depth SAP is known for. "SAP added a component for managing products that many on-demand CRM vendors don't have. You can use it as the product master or bring in the product master which is typically found in the ERP system," said Herbert. The new service component includes Service Ticket Management, Rule-based Service Ticket Distribution, and Service Level Monitoring. Also included is a rules-base service-level determination calculator that automates the routing of service tickets based on a customer's service level agreement, said Angela Bandlow, vice president at CRM Solutions Marketing. "It's a tiered service that tracks SLAs based on the customer and the required response time," said Bandlow. One of the key differentiators for the SAP offering, according to both Bandlow and Forrester's Herbert, is its ability to integrate easily with MySAP ERP systems on the back end. Using product information found in the ERP system, a sales person can pull up manufacturing availability and pricing information and deliver a quote in real time online. Bandlow said while this completes the three major components of SAP CRM OnDemand, quarterly updates can be expected with the next update due in December. To date, the solution, like almost all on-demand solutions, is not industry-specific. But Bandlow said the company is looking at that and will respond to customer demand.
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TechWeb - SAP AG unveils a search application capable of delivering results pulled from across corporate business systems to either a browser-based or desktop user interface.
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(InfoWorld) - SAP AG unwrapped its Enterprise Search application to help customers conduct specific secure queries of structured and unstructured data held in both SAP and non-SAP software. The vendor announced the search application Tuesday at its TechEd developer conference in Las Vegas during a flurry of announcements promoting innovation and simplicity. "We can do deep searches into enterprise data," Peter Graf, executive vice president of solution marketing for SAP, said during a conference call to discuss the news. "We can leverage all the knowledge we have about a user from [SAP] applications in terms of their preferences, roles and authorization for what information they can see." For instance, an individual within a company could carry out queries around the organization's corporate structure as to who reports to whom or determine which of their peers are experts in technologies like Java, he added. The aim is to make enterprise search tied to business context accessible to nontechnical users for a "Google-like" searching capability, according to Graf. "You don't need a very long learning experience to use Enterprise Search," he said. Formerly known as Project Argo, the application runs on SAP's NetWeaver 2004s integration platform. The underlying indexing engine is SAP's existing Trex search technology combined with newly developed search capabilities. SAP developers can download a free trial version of Enterprise Search now from the company'sÂ SAP Developer Network (SDN) Web site. The company plans to make the application commercially available in 2007, at which point SAP will release pricing details. Developers will be able to adjust Enterprise Search so they can use the application to search non-SAP applications, Graf said. They will also be able to embed search capabilities in other applications and create new search services. Enterprise Search has open interfaces so it can hook into third-party information sources and search engines. SAP plans for Enterprise Search to support a number of different user interfaces. The vendor will make the application available as a browser-based user interface for simple Web search and as a desktop widget embedded in its mySAP ERP 2005 enterprise resource planning application. SAP also intends to offer Enterprise Search as an enhancement to its Business Intelligence Accelerator (BIA) product. Graf stressed that Enterprise Search and BIA are complementary technologies, both using in-memory capabilities and being highly scalable.Â SAP released its BIA analytical engine in May after working closely with Intel Corp., IBM Corp. and Hewlett-Packard Co. The software enables users to quickly analyze and query vast amounts of business data on the fly without having to pre-aggregate and store the information in a database before querying it. SAP pre-installs BIA on blade servers from HP and IBM. Shai Agassi, president of SAP's product and technology group, described BIA as a "mini-grid and a mini-Google." SAP's main applications rival Oracle Corp. debuted aÂ stand-alone enterprise search product, Oracle Search Enterprise 10g, in March. Other applications players are also looking more seriously at the enterprise search market, including Microsoft Corp. with its Index Server software. Â
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Oracle Tuesday announced plans to extend the capability of its system management software to offer monitoring and management for SAP AG applications through a partnership with Nimsoft.
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SAP is rolling out a hosted service it hopes will appeal to midsize customers that can rent the software for as little as $325 per user per month while avoiding the complexity of in-house installations.
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German software giant SAP is teaming with Hewlett-Packard (HP) to offer midmarket companies in the US a hosted software offering that includes applications, maintenance, services and support for a monthly fee.