ERP Software

SAP SaaS ERP release for the midmarket

SAP has revealed its plans to launch a SaaS ERP SAP Version focussed on the mid market. Henning Kagermann SAP’s CEO announced earlier this week but no specific dates on release.

Netsuite CEO Zach Nelson has welcomed the announcement and mentioned that this will validate on demand within the ERP space. "Larry Ellison once told me that the best thing that happened to Oracle in the early days was IBM’s preannouncement of a relational database years before it was available. It gave credibility to the then-new idea of relational databases and created demand that IBM could not fulfil."

The thinking is SAP will use on demand as a loss leader and Netsuite is not too concerned (yeah right)and they have a eight year head start and that will give them space to keep ahead of SAP.

Oracle to buy SAP?

The rumour mill is on overdrive at the moment with Oracle putting in a bid for SAP.

The financial experts think there is not much substance to the rumour and might be done to prove to the public that Oracle is large enough to make a bid for SAP.

The timing is perfect to deflect attention away form Sap’s news on releasing a SaaS version for the mid market plus the competition authorities would not allow this deal to go through.

update

31.05.2007 :The story is doing the rounds again with SAP stock up ,the feedback is that  oracle has bought 8% of SAP.

Zdnet Link

Where there is smoke there is fire ,SAP is involved in all the rumours and is getting bad press at the moment for their future strategy.