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March 29, 2006 - At the beginning of February, because of customer demand and no doubt competitive pressures, SAP announced that it has entered the on-demand market for customer relationship management (CRM). Through a strategic partnership with IBM, SAP will offer the mySAP CRM software suite as a service that will be hosted at IBM. IBM also will provide all operational support and ancillary support services and perform customization as required. This appears to be a powerful offering from two industry giants, and it already has two large customers. Ventana Research sees this as an intriguing step by SAP, but a large step towards mainstream use of on-demand business software.
On-demand business software edged closer to becoming a mainstream proposition when enterprise software giant SAP, in partnership with IBM, entered the software-as-service market with a new offering based on its mySAP CRM suite. The service is targeted at larger companies with 100 or more users, and initially it will be limited to sales force automation. However, SAP says this will be expanded during 2006 to encompass all aspects of CRM. The service will be hosted at IBM but both will sell it.
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