SAP Launches ASP Hosting Subsidiary

HANOVER, GERMANY (02/24/2000) - Signaling a greater emphasis on acting as an ASP (application service provider), SAP AG today said it will launch a new application hosting company for mySAP.com, the vendor's Internet-based product line.

The new, yet-to-be-named subsidiary company will configure and maintain software on behalf of SAP's customers, as well as provide training, support and certification to SAP's ASP partners, SAP executives said today at a press conference here at the CeBIT show.

It will open its doors on April 1, but SAP has not yet decided where the company will be based, according to company spokesman Gerhard Rickes. The new subsidiary will work on an international basis, and initially have about 50 employees.

ASPs that provide hosting, lease rather than sell software to customers, as well as maintaining services for the software.

The services delivered by the new SAP company will charge customers on a per user/per month basis. SAP executives declined to give further pricing details.

The new company will mainly focus on hosting software applications for small and medium-sized enterprises (SMEs), said Henning Kagermann, co-chairman of the Walldorf, Germany-based software vendor.

"From our experience, most large corporations want to buy software themselves," said Kagermann. SAP thus anticipates that the new company's customers will stem mainly from SMEs and the public sector, Kagermann said, predicting that 10 percent to 20 percent of SAP's SME customers would move over to the ASP model within three years.

At CeBIT, SAP is also showcasing examples of ASP products and services that it will launch later this year, company executives said.

Also today, SAP announced the mySAP.com Marketplace for the SAP Community, software designed to give customers access to resources provided by SAP's partners. To be available for download from the Internet in the second quarter, the software includes a partner directory, service catalogs to request services from SAP partners, and an idea forum, SAP said in a statement.

SAP, in Walldorf, Germany, can be reached at +49-6227-747474, or at http://www.sap.com/.

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