SAP has delayed the roll-out of its mid-market business software on-demand offering after running into problems.
SAP announced its decision as it posted poor sales in its latest quarter and admitted that the on-demand service for smaller firms was struggling to make profit margin targets.
It now says it is limiting the on-demand offering to no more than 1,000 customers across just six countries, as it tries to iron out a delivery strategy for its Business ByDesign (BBD) offering.
China Martens, an analyst at the 451 Group, said, "We are not surprised to see SAP scale back its goals for BBD, which struck us from the start as being over-ambitious.
"It is worrying that SAP is seeing a whole host of issues to improve on only now, when BBD is already in the hands of users and partners."
Martens said, "At the same time, it is better to pull back at this early stage rather than encounter these significant teething issues when the suite is globally available.
"There are bound to be some disgruntled customers, given that SAP plans to engage with a lot fewer than 1,000 users this year. It had previously talked about 3,000 eager firms registering for BBD. We hope that the delay is a stumble and not the first step on SAP pulling back altogether on BBD."
SAP said it would extend the BBD offering to a wider audience next year, but did not make any firm commitment on the number of users who would be able to get it.