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Cloud Business: SAP AG Launches OnDemand SaaS Cloud Business Platform for SMBs

Enterprise application software provider SAP (News - Alert) AG has released its Business One OnDemand platform, which is aimed to help address small enterprise demand for minimal upfront IT costs.

Industry analysts suggest the mid-level market is largely untapped in terms of Software-as-a-Service offerings, with high demand for cloud business services among small enterprises.

“Small and midsize companies continue to be a relatively untapped market for SaaS / hosted solutions, especially small firms,” said Ray Boggs, vice president, IDC (News - Alert). Boggs indicated that this will likely change as over half of small firms plan to add enterprise resource planning (ERP), customer relationship management (CRM) and other advanced software while looking at cloud-delivered solutions: “Not everyone will move to the cloud, of course, but interest is clearly growing even among the smallest firms.”

SAP announced the new cloud business product at CeBIT 2012, being held this week in Hanover, Germany.

As a partner-hosted cloud environment targeting smaller companies, Business One OnDemand will be offered by Hungarian Telecom, itelligence, Seidor, Singtel, Versino and Virtustream, SAP officials said in a company statement.

Based on the nature of SAP’s SaaS (News - Alert) offering – including its comprehensive, easy-to-consume availability, transparent features and predictable cost – it will target smaller companies seeking a single product with more business functionality, as well as provide support for sales, purchasing, inventory and finance business processes.

SAP Business One OnDemand is intended to complement its SAP Business ByDesign product for midmarket customers.

“Small companies with little infrastructure and outsourced IT are expecting cloud offerings, sometimes in easy combination with their existing software,” said Eric Duffaut, president of ecosystem and channels at SAP AG. “Together with our partners, SAP is committed to providing customers of all sizes with choice and a solution that fits their needs. Now, small companies can use SAP Business One on premise or in the cloud to run their businesses better.”

SAP officials said initially the on-demand product is planned for availability in 18 countries, including Australia, Austria, Brazil, Canada, China, Czech Republic, France, Germany, Hungary, Italy, Mexico, the Netherlands, Singapore, South Africa, Spain, Switzerland, the United Kingdom and the U.S.