SAP won't disclose the level of trading activity on the site, and says it isn't charging users yet. One partner says SAP has a well-defined pricing structure for the marketplace, including a registration fee, a transaction fee, and additional licensing fees for SAP users. When SAP does charge for the use of the site, it says, sellers will be able to choose to pay a fee based on a percentage of the transaction volume, a flat fee per transaction, or a monthly or yearly subscription fee. That model is similar to the vertical marketplaces in which SAP is joint owner and operator. SAP struggled to boost revenue for most of last year due to a weak market for ERP systems and its inability to offer competitive front-office applications.
Observers are skeptical.
Some analysts attribute the strong fourth quarter to rekindled demand for SAP's core ERP products. I helped some customers through it. There was an effort to convert people and get revenue up in the fourth quarter. But if they don't measure up, you go with the best solution. Westell Technologies Inc., a telecommunications equipment manufacturer in Aurora, Ill., wants to link its business systems to those of its suppliers and partners.