Software Maker SAP Wants To Make Cloud Products More Flexible

Business software maker SAP AG (SAP.XE) plans to make its cloud-computing product lineup more flexible to meet customers' needs, executive board member Lars Dalgaard said Tuesday.

While there is nothing wrong with SAP's Internet-based Business ByDesign software suite product, it isn't suitable for customers who only want certain single applications, Dalgaard said at a press briefing.

"There are going to be mini suites," Dalgaard, who was appointed to SAP's senior management board last month, said.

Cloud services, which provide access to vast amounts of data and software stored on the Internet, are growing fast as they are less expensive and easier to use than comprehensive on-site installations.

SAP's Business ByDesign business software suite is targeted at smaller companies and was once planned to become a major driver of SAP's cloud computing offering, able to run accounts, human resources, sales, procurement, customer service and supply chain all on a single, cloud-based software package.

It was launched in September 2007 with the aim of reaching 10,000 customers by 2010. However, SAP scrapped the target just over six months later due to issues with performance and cost. The package was relaunched in summer 2010, but by the end of 2011 had only attracted about 1,000 customers.

The big boost for SAP's cloud footprint came with the $3.4 billion takeover of U.S. firm SuccessFactors Inc., which offers software that helps companies manage their employees and carry out performance reviews.

The acquisition was closed earlier this year, with SuccessFactors Chief Executive Dalgaard now leading the cloud business at SAP. Dalgaard said Tuesday that he is focused on growing the business organically.

-By Philipp Grontzki, Dow Jones Newswires; [phone]; [e-mail]