FRANKFURT Oct 19 German business software maker
SAP is winding down a web-based software product for
small to mid-sized businesses, a German magazine reported.
Business weekly Wirtschaftswoche said SAP would stop the
development of a software dubbed Business By Design, although
existing customers will be able to continue to use it.
An SAP spokesman said on Saturday that development capacity
for Business By Design was being reduced, but that the product
was not being shut down.
SAP, one of the world's biggest makers of business
management software, originally projected that Business by
Design - which was launched in 2010 - would reach 10,000
customers and generate $1 billion of revenue.
The magazine reported, however, that the product, which cost
roughly 3 billion euros to develop, currently has only 785
customers and is expected to generate no more than 23 million
euros in sales this year.
By comparison, in the second quarter, SAP's software and
software-related service revenue stood at 3.35 billion euros.
SAP started working on Business by Design in 2003 to
diversify sales beyond its traditional market of large
corporations and government agencies, trying to compete with
software sold by NetSuite, a company founded more than a
decade ago by Oracle Chief Executive Larry Ellison.
The Wirtschaftswoche report said that ever since the SAP
product's launch, customers had complained about technical
issues and the slow speed of the software.
SAP declined to provide any specific comment on investment
expenditures, sales figures or customer numbers of Business by