The First Step in

  • Written By: A. Turner
  • Published: January 7 2000

Event Summary

On December 14th, at the eBusiness Conference & Expo in New York, SAP AG (NYSE ADR: SAP) announced over 5,000 users in North America have embraced Application Hosting with since January 1999. Application Hosting with enables small to medium-sized businesses to use business software over the Internet.

"By using Application Hosting with, customers can implement their inter-enterprise solution by using preconfigured applications known as SAP Accelerated Solutions," said Tom Melchiore, director of Application Hosting, SAP America. "Together with our certified application hosting partners, SAP enables customers to instantly and cost-effectively participate in a collaborative global village."

SAP Accelerated Solutions are industry-specific solutions that offer preconfigured, business processes to streamline the time, cost and resources required for small to medium-sized companies to implement SAP solutions. There are currently 10 SAP Accelerated Solution areas: Automotive, Consumer Products, Enterprise, Financials, High Tech, Human Resources, Public Sector, Retail, Service Provider and Chemicals.

Through Application Hosting with, prospects can "test-drive" solutions using the SAP Internet demonstration and evaluation service, which enables customers to evaluate solutions online. After making a decision, customers can choose to implement their solution in a hosted environment from SAP, or one of its partners.

Market Impact

This announcement comes at a time of convergence. Digital market place, or "netmarket" vendors, and ERP vendors are focusing on efficiency solutions coupled with web delivery mechanisms. This is producing technology partnerships, (eg: Peoplesoft and Commerce One, SAP with Hewlett-Packard, American Express and Tradex) in an effort to deliver comprehensive Internet based solutions. The result is ERP vendors are expanding their offerings, not only by web-enabling them, but working to create a full service environment.

SAP's focus is small to mid-sized organizations looking to leverage web technology to improve business efficiencies. If the remaining components, such as "" and the "SAPmarketplace" are as well planned and deliver functionality, we expect them to enjoy a similar success. This will lead to an accelerated adoption rate of SAP web solutions in the next 4 to 9 months.

User Recommendations

We believe that SAP has launched a well planned initiative through forming partnerships with service providers, creating an environment where users can test drive solutions, and making the the solutions easy to implement.

Application Hosting with provides an opportunity to test before buying for those organizations considering an ERP solution that fit into the SAP's Accelerated Solution model. Further, the time spent checking out the application may provide SAP and its partners time to further streamline the solution. (For more information see TEC News Analysis article: "SAP/HP on the Web Together" Janauary 7th, 2000).

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