New hosted, subscription model of SAP Business One

QArea Expert by QArea Expert on July 7, 2011

New hosted, subscription model of SAP Business One
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SAP Business One

Partners will have the opportunity to rent Business One licenses monthly and customers subscription pricing in turn.

This Tuesday the company announced that SAP’s Business One suite is directed for small businesses will be available in a new subscription which hosted offering by means of SAP partners.
Consequently Business One is sold only through partners, who had already been hosting the software and in some ways selling it under subscription terms to end users.

But firstly those partners needed to buy Business One licenses up front from SAP and offer them clients through subscription pricing on their volition, as stated Astrid Poelchen, SAP spokeswoman. Now, partners will have the opportunity to rent licenses on a monthly basis from SAP and then they offer them to clients on similar terms, she added.

Poelchen also said that while partners may keep on purchasing licenses up front, there should be new method that is easier on their finances. She added that partners will be able also to offer more alluring subscription pricing to clients under the new system.

She also added that SAP’s backing can assist to get the word out to clients about the subscription option more efficaciously than any individual partner who is working on his own.

This year the new hosting option will be implemented in phases. Now it is available in Germany, Italy, China, the U.K., Spain, India, France and Southeast Asia, along with other countries, such as the U.S., that is coming later.

According to CEO of Constellation Research, Ray Wang SAP is producing the right move. Wand said that subscription pricing is exactly what the small-business market as well as the general market are looking for.
On Tuesday SAP declared that a quantity of starter packages for Business One is available now in a related announcement.
Thish Tuesday in a related announcement, SAP announced that a quantity of «starter packages» for Business One is now available. These packages are presenting fixed-price offerings which include the basic finance, purchasing, sales, inventory functionality database and customer relationship management which small companies require to run their business. They are available in delivering including up to 5 users. Clients may be up and running in as few as 3 days, according to the complexity of the job, as SAP stated.
Customers of starter package may upgrade to standard edition of Business One’s when they wish, with no necessity to reconfigure the application with accordance to SAP.
Along with the starter packages, SAP is aiming at snaring clients who have deployed Quickbooks or any other accounting software, but after they find that they require broader functionality owing to growth.