Tag Archives: SAP Business ByDesign

Make Mine To Go – Mobile Software-as-a-Service

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It was only a matter of time before two big trends in business computing collided, Web-based software and hand-held devices. Today, more software companies are putting their Web-based business applications, also called software-as-a-service (SaaS) on a widening number of mobile devices, including the Blackberry, iPhone, and handhelds that use the Microsoft and Palm mobile operating systems. Some of the latest versions of SaaS applications look and work the same no matter whether users tap into them from a mobile device, desktop, or laptop. Other software vendors offer SaaS apps on hand-held devices with somewhat less than 100 percent of the functions that are available to users logging on through standard PCs or laptops. Vendor developments Initially, software vendors partnered with middleware or value-added suppliers who created special interfaces to put SaaS offering onto mobile devices. But during the past year, vendors have started designing their own solutions. Some examples: NetSuite — When Apple unveiled the iPhone last summer, NetSuite simultaneously announced that its suite of Web-based business apps was 100 percent compatible with the new hand-held, thanks mainly to the fact that the pocket-sized device uses the same Safari browser as the Mac. NetSuite also uses three partners — iEnterprise, Antenna, and Explore Consulting — to port its SaaS products to other handhelds, says Mini Peiris, NetSuite’s vice president of product management. Salesforce.com — For years, Salesforce.com relied on middleware and other partners to create interfaces to put its customer relationship management (CRM) and other popular business software on customers’ Blackberry and Palm devices. In 2006, the SaaS pioneer acquired one of those vendors, Sendia, and has been actively marketing the technology, which works on Blackberry, Trio and Windows Mobile devices. According to Chuck Dietrich, vice president and general manager of Salesforce Mobile, the company’s SaaS apps also work on the iPhone. In November, the company began rolling out Salesforce Mobile, a technology that lets even non-technical mobile device users log on and, in a matter of minutes, set up and send applications to a sales team or other group. “In the mobile space that’s usually a Herculean effort that involves a lot of customization,” Dietrich says. “This takes the complexity out of mobile.” SAP — SAP hasn’t officially announced plans to put its Business ByDesign SaaS applications for small and mid-sized businesses on mobile devices. However, at the product launch last September, the German-based enterprise computing giant demonstrated how the software could work on a hand-held scanner with a credit card reader, similar to the kind that a field sales rep or service technician would use. Productivity boost Putting SaaS on mobile devices has been a boon to small business executives like Brian Kearne, chief financial officer of Circle of Friends, a Santa Monica, Calif., a children’s hair and skin care product maker. Initially, Kearne bought an iPhone for his own personal use. “To our happy surprise, we fired up the Web browser and we could access all of our business stuff on NetSuite,” Kearne says. Today, four of the company’s 12 employees access NetSuite via the iPhone, and No. 5 may be coming soon. “It’s definitely a productivity saver and allows people to be in touch with their critical business data while they’re on the road,” he says.

Picking an SaaS Vendor: Upstart or Big Player?

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Small and mid-size businesses considering their software-as-a-service (SaaS) options have more choices than ever. The latest vendor to enter the on-demand market is SAP, the German-based enterprise software powerhouse whose small-business SaaS product was introduced in late September. Called Business ByDesign, the multi-application suite should be widely available in the first quarter of 2008. SAP joins Microsoft and Oracle, who continue to roll out small-business SaaS products. They’re following Web-only SaaS pioneers like Salesforce.com and NetSuite Inc., which have built up strong user bases over the past few years. When weighing which vendor to choose, size shouldn’t matter, industry analysts caution. Instead, businesses should consider the same things they’d consider when evaluating on-premise software: first and foremost, whether a vendor offers the product that best fits a company’s need and has a core competency in what they’re selling. Beyond that, they need to be committed to the SaaS delivery model, says Erin TenWolde, lead SaaS analyst at IDC, a Framingham, Mass., tech industry researcher. To assess that commitment, she suggests quizzing vendors on their future direction, profitability and customer base, and asking to talk to existing users. Check contract terms SaaS contracts vary substantially, so a business should check the fine print for terms that fit its unique situation. Typical terms cover: Contract length — Some vendors allow customers to pay on a month-to-month basis, so contracts could be terminated with a month’s notice, says Robert DeSisto, vice president and application strategies analyst at Gartner, a Stamford, Conn., technology researcher. Other vendors require a two-year commitment, not always a good thing. “If you subscribed for 100 users for two years and six months later laid off 50 people, you’d still be paying,” DeSisto says. New releases — Vendors give customers varying amounts of time to upgrade to new releases. Some make customers jump to a new release immediately, while others give up to three months. Outages — As with upgrades, vendors’ guarantees of uninterrupted service are all over the map. DeSisto says he’s seen everything from no uptime guarantees to vendors who promise 99.7 percent uptime. Customization and customer service In addition to contract terms, companies need to consider whether a vendors’ on-demand software can be customized to fit a special business need, and how much customer support is available. According to IDC analyst TenWolde, forward-thinking vendors such as Salesforce.com host idea exchanges on their corporate websites where customers and business partners can discuss best uses of the company’s software. Good customer service is one way Web-only vendors are keeping customers now that bigger players have arrived. When Oriel Wines began using NetSuite’s accounting and finance software three years ago as a start-up wine distributor and reseller, there were no other options. Now that there are, Oriel managing director Kelly Ford wouldn’t consider switching, even though the New York City-based company has graduated to using on-demand applications for e-commerce and CRM. Says Ford: “We’re very happy.” When choosing a vendor, it all comes down to fundamentals, says DeSisto, the Gartner analyst. “You still have to have the right product, sales force, and marketing. A lot of vendors are preoccupied with being labeled SaaS but aren’t doing the proper work behind the scenes to make themselves have a viable offering.”

ERP for Small Business: The Time is Ripe

The time is ripe for small and mid-size businesses to adopt enterprise resource planning (ERP) applications, according to leading industry analysts. There are more options than ever among the crowded ERP-vendor field targeting the small and mid-size business sector. Those options are, in turn, growing more affordable. In addition, many small and mid-size businesses are in desperate need of an upgrade to sophisticated software that was once the purview of only larger corporations. “Many small businesses have not upgraded their infrastructure since the Y2K cycle,” says Albert Pang, research director of enterprise applications research for Framingham-Mass.-based IDC. “Many of their systems need to be replaced.” Companies looking to update their financial, human resources, project management, and procurement applications will find that their needs will be met by ERP offerings, Pang says. A field crowded with vendors The good news is that there are many new choices among ERP programs available to small and mid-size businesses, Pang says, with over 30 vendors in the field.  And those vendors are looking to small and mid-size businesses as their primary growth market. An August 2007 Forrester Research report forecast that the small business sector will be “the most dynamic and innovative growth area” for ERP sales over the next three to five years. If comparison shopping a 30-plus market of vendors seems overwhelming, consider that many vendors offer specialty products to certain sectors or verticals. For example, Activant Solutions specializes in offerings to distributors, Constellation Software Inc. services club-membership-type businesses, and Deltek Inc.’s products target professional services providers. But ERP’s largest players — SAP, Sage Software, Oracle, and Microsoft — have more generic offerings that are increasingly tailored to smaller businesses. For example, Oracle is offering fixed-scope products, such as E-Business Suite and JDEdwards Enterprise One. These can be up and running in days to weeks, not months to years like previous, enterprise-focused ERP applications, says Pang. That timetable is crucial for small businesses, which want and need to see a quick return on their technology investments. And while costs can vary widely according to a company’s specific needs, the costs for more sophisticated software have really come down. “In the past, many of these products would cost seven figures, but now, they are available for under $100,000,” says Pang. Stiff competition and the emergency of on-demand products available over the Web have contributed to this trend, he says. Custom, on-demand solutions Another option for smaller firms is to purchase generic solutions and customize them with help from a value-added reseller or consultant, explains Gary Chen, senior analyst and small and mid-size business specialist at Boston, Mass-based Yankee Group. A wide range of add-on modules is available to develop the perfect custom application for every company. Still another option is ERP on-demand products for smaller businesses, such as those offered by NetSuite and SAP Business ByDesign. SAP’s product features a unique flat price: $149 per user per month, according to its website. With all these options, it’s a good time for smaller firms to go ERP shopping, says Chen. “There is so much more available now,” he says. “There’s never been a better time.”