SAP originally hoped that Business ByDesign would have 10,000 customers and would be generating €1 billion in revenue by 2010, but failed to meet that goal. The vendor was also forced to retool the application's architecture in order to be sure it would be profitable when run at large scale.
Reports surfaced in recent days that SAP would be winding down active development of Business ByDesign.
Business ByDesign will be rolled into SAP's broader HANA Cloud product line, co-CEO Bill McDermott said during Monday's conference call. The application will also "continue to be supported and actively promoted in its current scope," he said.
Meanwhile, SAP is seeing strong interest from customers in the Business Suite on HANA hosting service announced earlier this year, co-CEO Jim Hagemann Snabe said during the call. About 450 customers have signed up so far, with half being existing SAP customers and another half new ones, he said.
While revenue from the service is still low, its becoming "the default choice" for new SAP ERP deployments, Snabe said.
The Suite on HANA service will "reinvigorate" SAP's core ERP business, according to McDermott. "The ease of consumption in the cloud for large companies has now been realized by 450 of them but theres thousands of them that should be doing it," he said.
SAP has maintained its guidance for the full year 2013 that it announced last quarter, when it forecast, for example, at least 10 percent growth in non-IFRS software and software-related service revenue at constant currencies for the year. The company, however, cautioned that exchange rates could negatively impact the company in the fourth quarter and full year by up to 5 percentage points in non-IFRS software and software-related service revenue growth rate, and by 7 percentage points in non-IFRS operating profit growth.