SAP is jumping into the social collaboration application arena, launching a social software platform for use by employees within a business and a social networking application for marketing and customer service tasks.

SAP leveraged its SuccessFactors cloud software subsidiary in developing the new SAP Jam application. SAP acquired SuccessFactors, a developer of cloud talent management applications, in February, and SAP is using it as a vehicle to expand its cloud software footprint. Lars Dalgaard, SuccessFactors founder and CEO, is spearheading SAP's cloud efforts.

Market researcher IDC predicts that sales of enterprise social software applications will reach $4.5 billion in 2016 with a CAGR of 42.4 percent. With the new products, SAP will be competing with the likes of Salesforce.com's Chatter, Oracle's Social Relationship Management and Microsoft's Yammer.

[Related: Gilroy: SAP Now Has 'Channel DNA']

"Deploying social software in a silo isn't enough," said Sameer Patel, SAP global vice president and general manager, social software solutions, in a statement. "Social software needs to be pervasive across our business applications and our devices, not in social silos, so the best minds can come together where collaboration is needed the most to continuously meet both business execution objectives and to delight the end customer. This is the core design principle behind SAP's social strategy."

The new SAP Jam application lets employees connect with fellow workers and collaborate around business processes, content and data. It combines what SAP described as "the best parts" of the Jam product SuccessFactors developed prior to the acquisition, with added capabilities and components from SAP StreamWork -- a social networking product SAP developed earlier.

Jam is integrated with other applications in the SuccessFactors Business Execution Suite, SAP's on-premise CRM application, and the mobile client for SAP's cloud Sales OnDemand and Financials OnDemand services.

Also new is the SAP Social OnDemand application designed for marketing organizations to monitor and analyze social media in real time and take action when necessary.

PUBLISHED NOV. 1, 2012