New Battle Foe for SAP?

In the general field of enterprise resource planning, SAP and Oracle has been on very tight competition for the last five years. Despite the very close competition, SAP has always remained number one.

But now, in the particular field of customer relationship management (CRM), SAP has meet a new and smaller but nevertheless fierce competitor in Salesforce.com

Salesforce.com has built its niche in selling of on demand customer relationship management software applications and other development platforms for enabling partners and customers to develop add-on applications which includes enterprise resource planning that can integrate with the development platform of Salesforce.com.

Similarly, SAP also plans of selling in as early as year 2008 an integrated suite of ERP and CRM software which ultilizes a a development platform for building add-on composite applications.

Both Salesforce.com and SAP are rolling out their new applications and platforms and yet they have denied any competition. But take this: During the week of September 17 when Salesforce.com unveiled Force.com as its new development platform's name in San Francisco during its Dreamforce user conference, SAP as also launching at the same times its on-demand suite Business By Design, which as the former A1S code, in New York.

SAP Deputy CEO Leo Apotheker said: "It is comparing a little hors d'oeuvre, an appetizer, and a complete three-star meal. Salesforce has a CRM application. It happens to be that the vast majority of businesses on this planet do a little more than just CRM. Our attempt is to get rid of all these acronyms. Businesses don't really buy acronyms, they buy a processes flow, a business model. We provide a complete solution and we provide a complete suite, lock stock and barrel, which is Business ByDesign] You don't need CRM from Salesforce any more. It's superfluous. No wonder Salesforce.com CEO Marc Benioff is worried. It is disconcerting. He has every right to be concerned."

The final piece of the Force.com platform will be the VisualForce which can let developers build any user interface for any application. Salesforce.com also announced that it will add two more new applications to its CRM portfolio. These two new applications will be called Content and Ideas and will be designed to appeal to a broader user base. Content will be more about Web 2.0 technologies while Ideas is move of a service for building communities where people meet and post and vote ideas.
On the other hand, SAP has been dominating the ERP software industry and is not new in full ERP integration with on-demand. Although not yet available, SAP's Business ByDesign will be able to deliver suites for common back-office functions such as finance, human resources, CRM, supply chain management, supplier relationship management and corporate governance.

SAP and Salesforce.com have been reaching the midmarket with the latter more aggressively looking for inroads leading to enterprise markets. SAP, well, has of course built a niche on the enterprise markets.

Whoever wins in this battle, if ever there is a battle, will benefit two entities: the winner and the consumers.