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Today was the big day for ERP giant SAP, which has officially unveiled its new product Business ByDesign, formerly known as A1S. According to a report by Computerworld, SAP states it would invest $400 to $550 million by the end of 2008, and CEO Henning Kagermann called the unveiling of the product "the most important announcement I have made in my career."

Business ByDesign is to be priced starting at $149 per user per month, and the service is targeted at businesses with 100 to 500 employees, and it is expected to be widely available by late 2008. Computerworld has more.

From experts who visited the demonstration, reaction was generally optimistic. ZDNet's Phil Wainewright said that SAP appeared to be on the right course and to understand SaaS, but that risks still remained in terms of customization and cannibalization. Also of ZDNet, Michael Krigsman agreed with general consensus that SAP has a lot at stake and that the product represents a shift in SAP's thinking, but advised customers to hold off on purchasing until the system has more of a track record.

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