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Krissi Danielsson
SaaS Week
SaaS Week discusses market trends and roundups of Software as a Service (SaaS) industry news, along with social networking, collaboration, and other neat enterprise Web 2.0 technologies. SaaS Week also offers Q&As with interesting Web 2.0 and SaaS vendors.

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May 12, 2008
Is SAP Having Trouble Scaling Down?

In an IT Business Edge blog, Ann All talks about the challenges SAP is facing in developing its long planned SaaS offering Business ByDesign. In the article, Alll speculates that the reason behind SAP's delays with Business ByDesign are that it is having trouble understanding and tapping into smaller markets.

All also points out that SAP may be having trouble with the idea that SMBs may not want an entire software suite from one vendor and that it might be better to enter the market by purchasing a company like Salesforce.com, but SAP may not be ready to concede defeat in the mid-market quite yet.

Meanwhile, as other companies begin to target the ERP space with SaaS offerings, one wonders whether SAP and other large companies will be left behind. Workday, for example, is putting out statements in the form of viral videos where it pokes fun indirectly at SAP and other giants, as InformationWeek reports. Of course, if Workday and its competition do become the leaders in mid-market ERP, they can always be bought up by SAP and its competition in a few years -- as hisotry has shown is the likely outcome.

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