SAP close to announcing ASP partners

SAP New Zealand is developing an application service provider (ASP) model - whereby companies rent software and hardware infrastructure - to deliver its solutions to small and medium businesses.

SAP New Zealand is developing an application service provider (ASP) model - whereby companies rent software and hardware infrastructure - to deliver its solutions to small and medium businesses.

To enable the new model, former Computer Associates distribution manager Nick Hemming has been appointed to the new position of channel manager, where he will oversee the building of relationships between partners, vendors and ISPs.

Hemming says while the total cost of owning enterprise software makes sense for large companies that can reap economies of scale, it is often too expensive for smaller companies because of the purchase price and the skills needed to implement and manage the project.

Because companies don’t own the software or infrastructure under the ASP model it should cut out such costs.

SAP is already offering ASP solutions in Australia, where it partnered with Solution 6 to implement SAP software at UNICEF; and the UK where British Telecom has implemented a solution for Maritime Cargo Processing.

Hemming says SAP New Zealand is still in negotiations and should be able to name local partners and the first customer in the next three weeks.

SAP’s ASP offering will be up to 80% in template form. Hemming says if a company wants a lot of customised functionality it should not be looking at the ASP model, but most small and medium sized businesses neither want nor need a lot of customisation.

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