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As SAPPHIRE NOW in Madrid is coming up fast (November 13th), I’m looking back at an amazing Q3/2012. All of our solutions did great, especially Sales on Demand. Our Cloud strategy around a loosely coupled, best of breed suite of solutions that focuses on key assets our large enterprise customers care most about – people, money, customers and suppliers – resonated well with customers, prospects and our partners.

In addition, our fully integrated cloud suite SAP Business ByDesign is growing its market momentum. Here are the key points I want to share:

#1 – SAP Business ByDesign had its best quarter ever with over 300% Year over Year growth. In the large enterprise space we had landmark wins with multiple thousands of users around the globe, including the New South Wales Department of Trade and Investment in Australia, HILTI in Switzerland and the largest ByDesign deal ever in the United States with Genomic Health. In the mid-market our partners alone added close to 100 new customers.

#2 –SAP Business ByDesign Feature Pack 4.0 (now also known as 12.08) is the default release for new customers. More than 800 new capabilities have been introduced, including 4 new countries.

#3 – SAP Business ByDesign platform enables Partners and the SAP Professional Services team to add customer specific solutions, vertical add-ons and new country versions. Leeyo, one of our partners in the U.S., wrote an add-on for additional revenue recognition capabilities. More than 14.500 lines of code, 24 new business objects, user interface screens and reports were added in less than 8 weeks time. And today 70 % of all ByDesign partners leverage the SAP Business ByDesign SDK (software development kit).

Including Ariba, SAP today has a US$1B revenue run rate in Cloud.  And Business ByDesign is a crucial part of why companies are choosing SAP Cloud.  I look forward to seeing accelerated momentum from this part of our Cloud business.

I hope you’ll join us at SAPPHIRE NOW to see our solutions with your own eyes.

Lars Dalgaard

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17 Comments

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  1. Andreas Eissmann

    Thank you Lars for sharing this here in ByDesign space on SCN! I’m glad to hear that ByDesign and the other on demand solutions are growing well in SAP’s opinion. I can definitely confirm that from partner side but it is still a long way to go…

    I am really looking forward to hear and see the lastest news of SAP’s cloud solutions at TechEd/Sapphire Madrid…

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  2. Greg Chase

    Some great bits in your blog about ByDesign.

    300% growth, nice to see ByDesign hitting warp speed! I saw an SAP partner, who may choose to identify himself later, tweet that his newest customer considers ByDesign the new industry standard for professional services companies.

    I also love the description of Leeyo’s add-on. There’s so much opportunity for ISVs to create new innovations off SAP’s rapidly growing cloud services and APIs.

    Hope we see more blogs on SCN from you Lars!

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  3. Sasha Nunes

    We have implemented SAP Business ByDesign and the feedback from the our customers is the same: “AMAZING”. They all agree that SAP Business Bydesign provides the Best of SAP BI, ERP, SCM, HCM and CRM for Small Growing Businesses.

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  4. John Kearns

    Great validation for our commitment as a partner to Business ByDesign as our go to market product.  Great news re Genomic Health as they are in our area both Geographically and vertically and should be a great reference.

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  5. SVEN FEURER

    I fully agree with Lars, that SAP Business ByDesign is our next-generation ondemand suite for medium enterprises and subsidiaries of large corporations. I also recognize that implementing a hybrid, a 2-tier ERP strategy, gains much momentum in the market. But ByDesign is even more. It our technical cloud platform for other ondemand solutions and allows customers to implement their extensions easily! In order to explain & show this to our LE customers and take them on our journey we offer them a so-called “SAP OnDemand Experience Workshop“. If you’re interested in that you can find more information in the SAP Service Marketplace or just let me know. Seeing is believing! Sven

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    1. Judson Wickham

      customers to implement their extensions easily

      Since when do customers have access to the ByDesign Studio?

      At least you acknowledged that ByD is the platform for the LoB solutions. First time I’ve heard an SAP employee openly admit that.

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  6. Judson Wickham

    I absolutely do not agree with point #3, and in fact, it’s simply untrue.

    Yes, there is the ability to create niche, customer specific solutions, and create very simple extensions to existing processes.

    But industry verticals? I don’t think so. We were promised an 80% open Public Solution Model with 4.0, but it seems we are more restricted than ever.

    This forces the most compelling extension offerings to be integrations to existing products.

    Leeyo, one of our partners in the U.S., wrote an add-on for additional revenue recognition capabilities

    I don’t think so. This is another integration. To achieve what Leeyo does natively, many,many objects would need to be opened.

    It’s finally time for ByDesign marketers and executives to get real. Those of us who have been in the trenches since ByD began have been subjected to this hype that far exceeds reality for years now.

    If 70% of partners leverage the Studio to build all these amazing solutions and verticals, where are they. I don’t see them.

    We want to be successful. But you have to allow us to be successful. And that, in turn, makes SAP successful.

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    1. Sandro Schiefner

      Hi Judson,

      I am the partner coach of Leeyo and it was no integration. They reimplemented their solution within ByD and showed that it is possible to develop a high integrated solution in financial just by using the ByD Studio. It took several employees of Leeyo and weeks to finish but together with SAP they have done the job and delivered.

      For me this was the evidence that you can not only do some small extensions but develop also complex financial solutions with the studio. I am really excited to see more of that examples 🙂

      Best regards, Sandro

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      1. Judson Wickham

        That’s great to know! I am a big fan of Leeyo and I look forward to offering their native solution to our customers.

        I have to say though, they were working in a pretty open area of ByDesign, that doesn’t require tons of PSM requests and cross deployment unit messaging, so the development process is much faster.

        Cheers to Leeyo and best of success.

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  7. Leonardo De Araujo

    It is very good that finally ByD is being positioned more centrally in SAP’s Cloud strategy.

    ByD is a proven suite, functionality and technology advanced that can address a lot of Small and midsize companies requirements, not only restricted to the “Subsidiary scenarios” (as some continue to say)

    Beyond Professional Services, ByD has a fit to other industries. For example, our company has implemented the Distribution vertical to a food distributor here in Canada. Quite complex and large scope. Customer and us are happy.

    We are also running the full professional services scope for our consulting business(internally). We’ve been live for 2 months now. Our analytics run in Memory (powered by Hana) and we have out of the box mobile solutions. We have just been upgraded to 4.0 what was an incident-free event. These are the types of benefits that someone that invests on Cloud-SaaS solutions hope to benefit from.

    We are quite happy with our decision to bet on ByD both as a customer and as a partner.

    Finally seing ByD properly position in the SAP strategy is comforting.

    I’ve been very vocal about it for months. Here are my most recent posts:

    http://scn.sap.com/community/business-bydesign/blog/2012/09/07/beside-some-confusing-messages-sap-business-bydesign-has-never-been-stronger

    http://scn.sap.com/community/business-bydesign/blog/2012/09/28/sap-business-bydesign-the-most-clear-and-appealing-cloud-proposition-from-sap

    Just hope this is not a one-off blog post. ByD is one of the most feature rich and complete Cloud offerings from SAP, has a huge relevance to the market and needs to continue to be positioned like that.

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  8. Kai Eschbach

    Great blog Lars!

    Comprehensive features with 4.0 as perfect basis + Plattform + more and more customers in different industries/countries in the Midmarket and LE-Subsidiaries

    ByDesign rocks!

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  9. Harald Freudendahl

    ByD is back for Large Enterprise Subs! Now we shall add more integrated business scenarios integrating Byd and SAP ERP to create unique capabilities vs. competitors like Workday who only have a generic toolbox…

    ByD comes back into the limelight.

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  10. Mohammad Ashiqur RAHAMAN

    Encouraging post. Thanks Lars for the post. We must NOT forget to convince our customers in terms of non-functional value proposition of SAP Business ByDesign. The most important value as a cloud solution is the SECURITY. SAP Business ByDesign has very matured security mechanisms and controls which we sometimes forget to promote to customers. Please see the following post for details (How Secure is SAP Business ByDesign for Your Business).

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