SAP adopts hybrid approach to on-demand software

BANGALORE: Enterprise software major SAP recently launched the on-demand CRM, which marked its foray into the Software-as-a-service sphere.

However, the company is still treading cautiously in this much-hyped on-demand software area.

Speaking to CyberMedia News, Zia Yusuf, executive vice president, Platform ecosystem, SAP, said, “We are taking a hybrid approach to on-demand solutions. From our perspective, on-demand software is one of the potential business models and not the only one. On-demand software is fine only for certain kinds of offerings.”

SAP is also exploring other areas where in the on-demand model could be offered. However, the company has not honed in on the specific areas.

Yusuf said that these solutions would be offered in areas that don’t need much integration with other enterprise applications and also pass muster when it comes to data security.

Yusuf is of the belief that while there is a lot of hype around Software-as-a-service, there are areas where it would not be a viable proposition. “In the deployment of core ERP systems and core HR functions for example, this may not make sense.”

On the partner ecosystem around the SAP Netweaver platform, Yusuf said that around as of now, 1500 solutions are offered on it. The company has also instituted a $125 million global Netweaver fund that is focused on investing in SAP Netweaver ISV partners.

So far, the company has taken a minority stake in two companies- ArisGlobal, a company that focuses on compliance software for the pharma and healthcare industry, and Questra that develops sensor networks software.

SAP is on the lookout for more such companies and will be making an announcement on another investment in the next few days, said Yusuf.

© CyberMedia News