The Village View

Thursday, February 02, 2006

SAP launches CRM on-demand solution

Today was the CRM on demand launch event here in the SAP New York office (with satelite link with Palo Alto). Over 40 industry and financial analysts, press, partners and customers attended in New York. Also, here were Bill McDermott (CEO SAP Americas), Bill Wohl(Head of Product & Solution PR) and Bob Stutz et. al. Several IBM folks were here including Marc Lautenbach, General Manager IBM Amercias (also spoke). Analysts from IDC and 451 group asked questions in NYC. CNet and Josh Greenbaum in Palo Alto. In NYC, representatives from Goldman Sachs and Sanford Bernstein also asked questions. Liz Herbert from Forrester was here as well.

The event was fairly short and sweet (didn't drag on like the Fusion event in SF a few weeks ago). Analysts asked about 6-8 fairly straightforward questions. Product demos were done during(briefly) and after the event. Interviews with Bill, Bob, IBM followed here in the NY office.
Bill Wohl opened up and explained that the on-demand product was being launched now because clients asked for it. He introduced Bob Stutz who leads the team that spent the last 7 months developing the system. Bob explained that the road map for the product is as follows: 1) SFA 2) Marketing Operations 3) Services.

Why start with CRM? Bill McDermott: This is what our clients are asking for. Shai: SFA consists of less mature processes and thus lends itself better to a standardized on-demand offering

is the 3rd generation of on-demand1) Single tenancy - essentially the ASP model2) Multiple tenancy - problem is that at peak times there are brown outs (Shai took a swipe at SFdC by eluding to "log on challenges" of some other competitors)3) Isolated tenenacy - Multiple dbs, above app server layer one instance. "hybrid" model.

Sales target- Groups/divisions within large enterprises with more then 100 users- upper segment of mid market- Non-SAP users among current SAP clients are major target- however, need not be a mySAP or R/3 client
-- Shai made a point that there are 60MM potential users. SFdC and Siebel on-demand have only several hundred thousands (less then 1%). Wide open market.
--Shai was asked why the upper mid-market was the first target. He answered that we had done the segmentations and that it was felt that this was the best place to start. While not specifically addressing downmarket, he did say that other segments would be addressed in the future. That was about as specific as I remember him being.


Two clients spoke very brieflyAmerican Standard Bath and Kitchen - rolling out to sales and customer careDupont - will use across sales force

Pricing- $75-125 /user/month- $75 gets you the SFA launched today, 125 all three parts when available
Relationship with IBM- not a joint development- hosting on IBM servers with DB2- Shai refused to divulge the financial relationship

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