Comments on: SAP ByDemand could work a lot better than critics think http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/ Technology ... politics ... marketing ... strategy ... life Wed, 08 Sep 2010 09:52:33 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: DBMS2 — DataBase Management System Services » Blog Archive » Oracle and SAP outline different market strategies http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-62963 DBMS2 — DataBase Management System Services » Blog Archive » Oracle and SAP outline different market strategies Fri, 25 Apr 2008 04:09:03 +0000 http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-62963 [...] SAP has famously rewritten its apps for new environments a couple of times, most notably in the R3 release that first took technology to RDBMS-based client/server platforms. And Larry’s gibes notwithstanding, it’s very reasonable to expect that SAP will figure out how to make the SaaS (Software as a Service) business work. [...] [...] SAP has famously rewritten its apps for new environments a couple of times, most notably in the R3 release that first took technology to RDBMS-based client/server platforms. And Larry’s gibes notwithstanding, it’s very reasonable to expect that SAP will figure out how to make the SaaS (Software as a Service) business work. [...]

]]> By: The Monash Report»Blog Archive » I repeat — SaaS is not necessarily an indirect-channels business http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-57641 The Monash Report»Blog Archive » I repeat — SaaS is not necessarily an indirect-channels business Tue, 04 Mar 2008 12:53:32 +0000 http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-57641 [...] Looking back, I should have quoted that in support when I wrote: By the way, I think the assumption SAP needs to sell ByDemand via indirect channels is an erroneous one. (Dennis Howlett seems to be at least partway to recognizing this. He also reports that SAP realizes that this is truly a sales issue.) Hence my stress on SAP’s internal sales management issues. [...] [...] Looking back, I should have quoted that in support when I wrote: By the way, I think the assumption SAP needs to sell ByDemand via indirect channels is an erroneous one. (Dennis Howlett seems to be at least partway to recognizing this. He also reports that SAP realizes that this is truly a sales issue.) Hence my stress on SAP’s internal sales management issues. [...]

]]> By: Curt Monash http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33271 Curt Monash Wed, 26 Sep 2007 20:28:01 +0000 http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33271 Here's the thing, Dennis -- there's no logical reason for SAP to rely on indirect sales at all! The classical channel model is to run product sales at what would be a loss if you allocated all sales costs to products, then make your profits on sales of high-margin services. But SAP has already suggested ByDemand doesn't fit that model. When I first became a software stock analyst in 1981, a lot of application software salesman were former ADP branch managers. ADP had a great sales machine; they just didn't pay their guys a lot. SAP, in my opinion, should and probably needs to build something similar. CAM Here’s the thing, Dennis — there’s no logical reason for SAP to rely on indirect sales at all! The classical channel model is to run product sales at what would be a loss if you allocated all sales costs to products, then make your profits on sales of high-margin services.

But SAP has already suggested ByDemand doesn’t fit that model.

When I first became a software stock analyst in 1981, a lot of application software salesman were former ADP branch managers. ADP had a great sales machine; they just didn’t pay their guys a lot. SAP, in my opinion, should and probably needs to build something similar.

CAM

]]> By: Dennis Howlett http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33235 Dennis Howlett Wed, 26 Sep 2007 11:18:37 +0000 http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33235 Thanks for the hat tip. Just to be clear, my remarks are based not just on my personal view but those of a clutch of my Irregular colleagues plus our interpretation of what Kagermann, Apotheker and Zencke said to us in our meetings. The channel issue is real. Web/telesales alone will not get SAP to where it says it wants to be. There are ongoing concerns by many people that SAP has not figured out how it will deal with channel issues. The answers we received are way too vague at this time and have been for more than 6 months. @Cornel: This is SAPs nth attempt at a mid-market offering and BusinessOne can hardly be called a 'well thought out' when it was acquired and still has limited traction. Thanks for the hat tip. Just to be clear, my remarks are based not just on my personal view but those of a clutch of my Irregular colleagues plus our interpretation of what Kagermann, Apotheker and Zencke said to us in our meetings.

The channel issue is real. Web/telesales alone will not get SAP to where it says it wants to be. There are ongoing concerns by many people that SAP has not figured out how it will deal with channel issues. The answers we received are way too vague at this time and have been for more than 6 months.

@Cornel: This is SAPs nth attempt at a mid-market offering and BusinessOne can hardly be called a ‘well thought out’ when it was acquired and still has limited traction.

]]> By: Cornel Schoeman http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33010 Cornel Schoeman Tue, 25 Sep 2007 12:38:00 +0000 http://www.monashreport.com/2007/09/25/sap-bydemand-could-work-a-lot-better-than-critics-think/#comment-33010 SAP has been known to take on unchartered waters - and make a huge success out of it. The criticism from mayor role players could all be relevant or not. From my experience SAP has only launched well thought through products, and Business By Design would be one of these again. It's all about the customers - if they believe and take up the product, that will be the ultimate success. Cornel Schoeman Britton Solutions http://www.businessone.co.za SAP has been known to take on unchartered waters – and make a huge success out of it. The criticism from mayor role players could all be relevant or not. From my experience SAP has only launched well thought through products, and Business By Design would be one of these again. It’s all about the customers – if they believe and take up the product, that will be the ultimate success.

Cornel Schoeman
Britton Solutions
http://www.businessone.co.za

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