SAP on the slide or is this a turning point?

SAP, the world's largest business software company, is getting battered on the stock market. Its' shares are down 15% already this year as worries mount about its' ability to continuing growing given the saturation in the large corporate market.

Back in 2000 it did begin attempts to enlarge its market focus to include SMEs but most people consider its' software far too complex for this space.

However, SAP is clearly renewing its focus on this SME market and has announced that it is to introduce a SaaS offering from the end of March. It will be subscription based and mark a departure from SAPs usual licencing model.

SAP claim they will be the first company to offer a business suite of products on demand, rather than niche CRM or accounting components.

Is this a desperate attempt to revive their fortunes by hooking up to what SAP may perceive as a fad/fashion or a genuine refocussing of the company to eventually operate alongside pure-SaaS players like Salesforce?

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posted by John Wilson @ 10:30 AM Permanent Link newsvine reddit


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