SAP and Microsoft cosy up

SAP and Microsoft cosy up

Microsoft and business software maker SAP have reached an agreement that will facilitate much easier integration of SAP's back office systems with Microsoft's desktop applications.

While the companies have had a working relationship for around 10 years, it is the first time the pair have licensed their intellectual property to each other, affording SAP access to the Microsoft development community when building its applications, while for Microsoft, the deal will help it penetrate the large enterprise market that SAP operates in to sell additional software.

SAP executive Shai Agassi said that with nearly two-thirds of SAP customers using Microsoft's .NET platform, it made sense to work closer to integrate their products so that their customers enjoyed "friction-free computing."

Meanwhile, at Sapphire, SAP's international customer conference, currently taking place in New Orleans, the company announced new packaged offerings for customer relationship management (CRM), enterprise resource planning (ERP) and vertical industry applications.

"Our outlook for midsize enterprises investing in CRM software is ‘positive’ because we have found overwhelming proof of the benefits of CRM initiatives among midsize enterprises," said Wendy Close, research director, CRM, Gartner Research. "However, CRM vendor viability will remain a critical consideration, because it is likely that more than 50 percent of the vendors in this market will be acquired, merge or go out of business by 2005."

SAP’s new vertical offerings for mid-market companies provide industry-specific functionality. The SAP Best Practices packages address key strategic processes to meet the unique needs of growing businesses in the automotive, chemical, consumer products, high-tech, industrial machinery and equipment and professional services industries. SAP is working with its partners to introduce the packages in key markets globally.

The SAP packaged offering for mid-market professional services businesses is designed for project-based services organisations. It provides services directors, project and resource managers and consultants with tools for project, resource and project financial management, including time and expense recording, various billing methods, project controlling and integration with financial management.

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