SAP Business ByDesign20 Sep

Although I’m not a huge SAP follower, I saw the announcement on Tuesday that SAP was going to announce a hosted solution. I believe hosted ERP suites have great potential in the SMB market. SMBs don’t typically have a significant IT staff capable of keeping up with the configuration, maintenance and integration of typical ERP products. But their needs are not that much less complex than much larger organizations.

Currently, NetSuite seems to be the leading the way in the hosted ERP industry. Microsoft has a hosted Dynamics GP option. And SalesBoom has an intriguing solution although I have to admit that my knowledge of it extends only to what I’ve read on their website and found through other Google searches.

So I was eager to learn more about this service which is dubbed SAP Business ByDesign. The SAP website is very sparse. And I hate registering on a site just to receive marketing material, so I haven’t gotten in too deep. But I saw these two questions in the FAQ document:

15. How much does SAP Business ByDesign cost?
SAP Business ByDesign will be offered on a subscription basis, priced per user per month for the specific capabilities being utilized. Pricing starts at US$149 per user per month in the United States and China or €133 per user per month in Germany, the United Kingdom, and France.

16. What is the minimum and maximum number of users for an SAP Business ByDesign installation?
We expect the typical SAP Business ByDesign customer to have between 100 and 500 employees. There is no maximum user limit; however, a minimum of 25 users must be licensed.

The $150/user/month seems like a reasonable base price point. But the 25 license minimum? I have a real hard time picturing a 100 employee company spending $45,000 per year on this software.

One Response to “SAP Business ByDesign”

  1. Tom Greenberg

    For the small and medium size business, the only on-demqand ERP solutions integrated out-of-the-box with CRM is Netsuite and

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