SAP Business ByDesign is not being canned

SAP Business ByDesign is not being canned

Summary: SAP Busines ByDesign enters a new chapter in its history. One that sees changes but not retirement.


Yesterday the SAPPHIRE air was polluted by confusion and speculation around the future of SAP Business ByDesign. Comments made by Lars Dalgaard that “Business ByDesign was a beautiful vision but it was too big. Everyone does not want to put all their apps out in the cloud in one go. It was intimidating,” combined with the news that SAP is offering separate functional applications, created the impression that BYD was being sunsetted.

This caused issues for some resellers who have already invested in BYD training. They were left wondering if they had been hung out to dry and what story to tell their customers. It also left a poorly informed media jumping to conclusions.

None of this was helped by two other factors:

What everyone ignored was the fact that SuccessFactors announced it has just gone live on BYD for all its employees in a matter of weeks.

I don't know about you but anyone with half a brain must know that you don't tip up as leader of a cloud business and announce you've just gone live with a solution you plan to kill. It doesn't make sense. Unless of course you believe the leader of that outfit has gone completely off the rails.

Dalgaard was unequivocal: "I don't understand this. Sure, the board gave me full power to kill it if I felt it was the right thing to do. But why would I kill a product that has live customers, is selling and on which we have just committed a large number of developers?"

He did however admit that the company's go to market was not as good as it could be and remains convinced that SAP can succeed with a separated financials solution. That comes out of his conviction that the full suite is 'intimidating' in its current form. Whether he is right remains to be seen but once again, a fresh chapter opens up in the ever evolving BYD story.

Topic: SAP

Dennis Howlett

About Dennis Howlett

Dennis Howlett is a 40 year veteran in enterprise IT, working with companies large and small across many industries. He endeavors to inform buyers in a no-nonsense manner and spares no vendor that comes under his microscope.

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  • SAP Business ByDesign - for clarification

    Hi Dennis

    Many thanks for your updates - definitely a voice of reason in a noisy environment!

    A couple of points for clarity if I may:

    1) Great news, Lars has stated (as you said above) that ByD is here to stay (as an integrated suite in the cloud - including Financials), and its development/ road map evolution continues as normal.

    2) There will be available soon, a stand-alone, Cloud-based Financials offering from SAP. This will essentially be the Financials core (copied) from SAP ByD, and may have other components added.

    3) The go to market strategy in 2011 for ByD was essentially in SME, to get 1,000+ customers live on the platform; to prove scalability, support operations, security, multi-tenancy, etc. SAP more than achieved this goal in 2011.

    In January 2012 SAP started its go to market with ByD in its "large enterprise" customer base - looking at subsidiaries and other use cases. It's now almost June, and we have customers live, and a healthy/ growing pipeline of traditional SAP customers looking to evolve into a 2-tier ERP architecture and strategy.

    We are looking at an amazing future for ByD (and the overall SAP Cloud strategy) and we look forward to working with our customers (old and new) as this exciting world develops.