Executive Summary (This is a document excerpt)

SAP's ambitious new software-as-a-service (SaaS) enterprise resource planning (ERP) offering, SAP Business ByDesign, is targeted at small and medium-sized businesses (SMBs) and features an innovative configuration capability and a try-before-you-buy selling approach. While the concept remains on target, the product has been set back by a variety of issues resulting in reduced ramp-up projections and funding. One of the key challenges is to efficiently propagate software updates across customer-specific databases, a hosting strategy SAP calls "mega-tenancy." These issues must be solved before SAP can resume its aggressive rollout plans. As SAP works to ramp up the product, competitors such as NetSuite, Workday, and Fujitsu Glovia Services are looking for a piece of the emerging SaaS ERP opportunity.

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