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Vendors to line up to adopt SAP's software strategy

SAP America CEO Bill McDermott said the company's partners will adopt SAP's enterprise services architecture strategy. EMC Corp. joined nine other software vendors that plan to roll out ESA-ready products.

BOSTON -- SAP's Enterprise Services Architecture (ESA) is being adopted by several software vendor partners that plan to roll out ESA-enabled products over the next year.

A month ago we had quite a reception of our partners … and we educated them on the strategy and they were extremely receptive to it.
Bill McDermott,
CEOSAP America

Storage vendor EMC Corp. announced plans Tuesday to integrate SAP software and adopt SAP's ESA strategy. EMC will integrate the SAP software into their storage systems.

The first products from EMC will be available later this year and focus on upgrades and archiving. Future ESA-ready products will focus on regulatory compliance in the life sciences and consumer products industries.

SAP executives are highlighting the company's shift to an ESA as they roll out the red carpet at the company's annual Sapphire user conference in Boston this week. The transition to an ESA will enable all SAP's software to support a service-oriented architecture (SOA) by 2007.

Part of SAP's strategy includes getting other software vendors to adopt ESA, said SAP America CEO Bill McDermott, who briefed and reporters Tuesday. EMC was the first software vendor to announce its plans to produce products supporting SAP's ESA strategy.

"A lot of partners look at our ecosystem as it upgrades and as it changes as a great opportunity to increase their revenues," McDermott said. "A month ago we had quite a reception of our partners … and we educated them on the strategy and they were extremely receptive to it."

SAP Wednesday unveiled nine other software vendors that are adopting its ESA strategy. Adobe, Cisco, Computer Associates (CA), Intel, Macromedia, Mercury, Microsoft, Symantec and VERITAS will license ESA to provide ESA-Ready products that integrate easily into a Web services architecture.

Under the partnership with SAP, the software vendors will receive fully-featured development and run-time tools that allow them to immediately build, test and certify Enterprise Services-Ready products. SAP licenses ESA to the vendors and has ironed out separate financial agreements to share royalties on the products.

Storage software vendor Network Appliance announced plans to partner with SAP to launch a new software and services package aimed at the midmarket. The package integrates NetApp storage and data management technology with SAP software to help speed upgrades. Macromedia Inc. and Microsoft each announced separate partnerships at SAP's international Sapphire conference last month in Copenhagen, Denmark. Microsoft and

SAP are developing software code-named Mendocino that can move data from SAP systems in Microsoft Office programs.

SAP is also ramping up its push for small and midsized companies with the launch of a global channel program, McDermott said.

"We built a whole business division around the midmarket where we go direct to our midmarket customers," McDermott said. "We're also building out a small and medium-sized business channel where we are going through a reseller channel to get to small companies, and we're bringing the brand down market."

Dig Deeper on SAP trends, strategy and ERP market share

McDermott: No fear of Oracle as SAP looks ahead with CRM, ESA NEWTOWN SQUARE, Pa. -- SAP America chief Bill McDermott is always on the run. After meeting with potential clients he gave a keynote recently at a Chicago business conference and quickly jetted off to Germany before SAP released its third quarter financial results. He's downright giddy over what appears to be a continued chipping away at archrival Oracle's application market share in the United States and SAP's overall 20% growth over the same period last quarter. Now the CEO looks to make good on SAP's promise to service-enable its entire application suite by 2007 and plans to bolster its market presence among small and midsized businesses. recently interviewed McDermott while visiting the SAP U.S. headquarters in Philadelphia. He addressed Oracle's OffSAP program, possible plans for a hosted CRM product and SAP's challenges in the midmarket.

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