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The full-scale start of Business ByDesign is postponed

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30.04.08, 18:00, Msk

During beta testing of SAP Business ByDesign in the company came to a conclusion about need to postpone wide circulation of a system in the market of SMB and to reduce investments into its development. However in SAP are still sure of correctness of the selected business model.

SAP announced changes in plans for promotion of the new Business ByDesign system which should become a crucial element of strategy of "gaining" a segment of medium and small business.

A system was released in September, 2007, and since then was tested by a number of the partners and clients of the company who wished to participate in early testing of the solution. The developer tried to take into account the comments stated to him and wishes, and as a result in the company came to a conclusion about need a little to postpone process of a full-scale output of a system to the market.

So, on the specified plans of the company, in 2008 a system will be available only in six countries participating in its beta testing. A system should come to other countries in 2009. And if earlier the company was going to come to "boundary" of 10,000 clients of Business ByDesign and 1 billion dollars of income from a system in 2010, then now this purpose is postponed approximately for 12-18 months. However, as it is reported, the company intends to use innovations and Business ByDesign technologies for development of existing solutions.

Also SAP recognized that in 2008 the customer base of the new application will make much less planned initially 1,000 companies. With respect thereto, investments into development of Business ByDesign in 2008 will be reduced to 100 million euros (earlier it was going to spend for it about 300-400 million euros), and in 2009 additional investments into development of a new product will not be, and costs for its development will be selected within the general budget of SAP.

However in SAP still save confidence in success of the new product and  the chosen business model.