Business ByDesign Viability and Pricing
SAP Vendor Viability
SAP is the largest software company in Europe and the fourth largest in the world. The company is generally conservative and managed by extraordinarily talented leaders. SAP is financially sound, commands a strong brand, manufacturers a broad portfolio of enterprise software and retains a global customer base of over 102,000 companies.
However, while clearly solvent to say the least, the company is not immune to downward trends and falling on hard times. The global recession pushed SAP to focus on controlling costs and improving margins. Even with such efforts, revenues and operating margins declined in several key markets and the company eliminated thousands of positions. Revenue growth remains challenging for the company. While SAP wrestles with innovation, it must also balance the need to add value to existing solutions for existing customers while bringing new solutions to market.
Recent proposals for escalations of software maintenance fees, a cash cow program, caused great angst with the customer base and were ultimately retracted and revised. Major go to market initiatives such as the Business ByDesign and Sales On Demand launches incurred significant delays, due largely to technical challenges, and while they now look promising, these products have largely under-performed to date.
The company has incurred CEO turnover and has a relatively new mix of Directors. Senior executives from Business Objects, competitors and other firms bring change to the company. In fact, the company culture is in transition from an engineering legacy to much more of a sales driven culture. SAP has accommodated change for over 40 years, but with any company, change can derail the best of intentions and operational execution.
ByDesign uses a per user per month subscription pricing model and is most often contracted on an annual basis.
Pricing for ByDesign starts at US$149 per user per month subject to a 10 user minimum. The subscription includes the entire CRM suite of sales, marketing and service.
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