October 29, 2012 // By: Heather McIlvaine
Product of the Week
Over 35,000 customers around the world already use SAP Business One to manage their business processes, from financials to sales, on a single platform. It’s one of the most-searched SAP solutions on Google. This year, the company launched a cloud-based deployment option for the solution that is fully operated by partners: SAP Business One OnDemand.
“By bringing Business One into the cloud, SAP is addressing the segment of small companies that are very open to on-demand software,” says Michael Fiedler, global go-to-market lead for SAP Business One OnDemand. In general, SMEs are more open to cloud-based solutions than large enterprises. This is because cloud solutions require very little long-term IT investment – in terms of servers, maintenance, and staff – and don’t have any up-front costs.
Companies can license the solution on a per-user, per-month subscription basis through one of SAP’s value-added resellers, or VARs. In turn, the VARs work with SAP-certified cloud providers to deliver the solution. Over 30 customers have already subscribed to the offering since it became available in mid-2012. “We’ve seen significant uptake in Latin and Central America and in the APJ region,” says Fiedler. Companies in developed markets – traditionally a bit slower to adopt cloud-based solutions – have also shown interest in the on-demand deployment option. One U.S.-based VAR, Orchestra, recently closed five deals within just a few weeks. According to Fiedler, their success is due in large part to the targeted approach they developed with their certified cloud provider to offer packaged solutions for breweries.
Other partners should take note of this. If they don’t adjust some of their current Business One practices to the on-demand business, says Fiedler, they could face some challenges: “What partners have to realize, especially those who are used to the on-premise business, is that there’s another player in the game – the cloud provider. Partners simply need to embrace the new on-demand model,” Fiedler says.