SAP Business ByDesign(TM) Unveiled; First Live Midmarket Customers Experience the Power of the Most Complete On-Demand Business Software Solution

SAP AG (NYSE: SAP) today unveiled SAP® Business ByDesign(TM), the most complete on-demand business software solution specifically addressing a new market of prospective, fast-growing midsize customers. Designed around four key principles -- completeness, ease of use, adaptability and significantly cutting total cost of ownership (TCO) SAP Business ByDesign delivers an on-demand software solution with built-in service and support. It offers a personalized trial for invited customers to explore, evaluate and experience the solution, and competitive pricing at $149 per month per user, with lower price points for efficiency users.

Complementing the existing portfolio of SAP solutions for small businesses and midsize companies, the solution is already helping an inaugural group of live customers to improve business processes across their organizations. SAP Business ByDesign is available today for selected early customers in the United States and Germany, with the opportunity now opening for early customers in China, France and the United Kingdom.

"With SAP Business ByDesign, today we are adding a completely new business model to our successful, established one and are changing the on-demand marketplace," said Henning Kagermann, CEO, SAP AG. "SAP Business ByDesign is designed to dramatically simplify IT for midsize companies by substantially reducing the cost of ownership and combining efficiency with business flexibility. The technical advantages of SOA enter the level of business processes and allow customers to exploit the full potential of new business trends without becoming IT experts. Such an affordable, easy-to-use and complete offering has been missing for midsize companies in the sweet spot until today."

First Customers Tap Value of Easy-to-Use Business Software

Over the last six months, SAP has worked with select customers and partners to validate SAP Business ByDesign. Among the first 20 live customers in Germany and the United States are STEMME AG, a utility and sports aircraft manufacturer; Judge Consulting Group, a provider of business technology consulting services; MANTZ airmotions GmbH & Co. KG, a manufacturer of air fresheners for homes and vehicles; and Compass Pharma Services LLC.

Compass Pharma Services LLC provides outsourced contract packaging, manufacturing and distribution services to the world's best-known pharmaceutical companies. The company's success depends on its ability to quickly respond to short-run, just-in-time orders while providing visibility to major customers that require a range of information across the different functional areas. The company's current systems do not allow its functional departments to interact and share information -- information that is essential to its customers. Compass is implementing SAP Business ByDesign to provide a single, on-demand business solution that can streamline operations.

"SAP has done a tremendous job of translating our business requirements into an easy-to-digest business flow within SAP Business ByDesign; it's clear that SAP really took the time to understand how smaller businesses think and operate," said Kevin Flanagan, CEO, Compass Pharma Services LLC. "We now plan to spend less than 25 percent of our original IT budget and are excited to be one of SAP's first SAP Business ByDesign customers."

Extending Reach of SAP Portfolio into $15 Billion Market

SAP Business ByDesign complements the existing SAP® Business One , SAP® Business All-in-One and SAP® Business Suite solutions, allowing SAP to address the business requirements of all sizes of companies from the smallest businesses, through all types of midsize companies and larger enterprises. The new SAP Business ByDesign is the most complete on-demand business software solution targeted exclusively toward new midmarket prospects in the size range of 100 to 500 employees -- growing companies that typically have not invested in these types of integrated business solutions. SAP estimates that there are more than 60,000 such companies in Germany and the United States alone and sees a worldwide market potential of more than $15 billion. SAP Business One is designed for the small business segment, while SAP Business All-in-One is built specifically for midsize companies that need deep industry-specific functionality and extensibility to meet their precise requirements. In making today's announcement, SAP said it had aligned the product names of its solution portfolio, adjusting the name of its existing midmarket solution to SAP Business All-in-One.

"SAP's new on-demand solution for the midmarket represents a bold initiative, featuring innovations in ease of use and ease of configuration while incorporating the learning gained by SAP's years of experience in the applications business," said Henry Morris, senior vice president for Worldwide Software and Services, IDC. "This unveiling is a promising start for SAP, with these challenges to be addressed before product release: firming up the go-to-market model with wide reseller support, demonstrating needed application scalability for midsize companies who intend to grow and solidifying linkages between existing applications and the new solution."