Is It SaaS Or Is It Not?

So the big question seems to be is it SaaS or isn’t it? Back in 2007 SAP answered “Yes.” The code name was A1S & went public with Business ByDesign. SAP hit the road running. There were some factors that could steer it off course but SAP was determined to learn everything it could about this new environment.

1. Start from a customer need

2.Get the infrastructure right

3. Offer try before buy

4. True subscription pricing

5. True share services SOA (Service oriented architecture)

6. Keep leaning from your customers

Here’s the points that could blow BusinessByDesign off course

1. A shortage of suitable partners

2. Lack of customization capabilities

3. Fear of cannibalization

4. Economic pressures

Apparently SAP got a bad case of fear because they de-activated Business ByDesign so the answer was “no.”

Now there’s talk about bringing it back.Why the change of heart? My theory is that SaaS is starting to gain traction. Companies like Intacct who recently got the blessing of the AICPA, which has 350,000 members.

 Cloud-based solutions are not only hot but may be needed if SAP is to continue to fend off newer competitors like Salesforce, NetSuite, Intacct, etc. Savvy readers will of course realize that some of these competitors aren’t new to SaaS. Some of these SaaS firms have been around for a decade now.

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