SAP, Microsoft Duet Partner Plans Differ

When Microsoft and SAP ship Duet Office-ERP integration software next month, SAP will be selling it solo, while Microsoft will engage partners.

The product, known until last week as Mendocino, will let customers use the familiar Microsoft Office as front end for MySAP 2004 ERP data.

While the vendors will sell the same product, they’re parting ways on pricing and distribution: Microsoft said it will put Duet on its Volume Licensing product list and make it available through resellers, while SAP said it will only sell Duet directly.

One SAP partner is bullish on Duet, even though he can’t sell it.

Brad Nicolaisen, president of Et Alia, Milwaukee, said Duet will set up good services and consulting opportunities for partners.

“For years, customers and prospects have been asking for this,” he said. “Until now, we couldn’t do much except set up some e-mail functionality. Now, we can integrate [SAP] into all the Outlook functions, including calendars and tasks. For example, if I have a workflow event within SAP and I need to interview a particular candidate, normally I’d set up a workflow request in SAP. Now I can create a meeting request right within Outlook. And if I change it in Outlook, it’ll update in SAP.”

Duet is the product of an unusual—and uneasy—alliance between Goliaths. By easing integration between their widely used software, both vendors hope to deepen their roots in customer organizations and fend off circling vultures like Oracle. Duet targets large enterprises, businesses that have extensive mySAP deployments and thousands of workers spending time working in Office applications such as Outlook.

Only Microsoft is willing to disclose its Duet price tag. (The companies claim antitrust regulations bar them from collaboratively setting a price.) Microsoft will charge a list price of $125 per user client access license, with discounts available depending on individual deal terms. SAP declined to discuss pricing.

Microsoft also is parting ways with SAP on reseller distribution. “It should be available from the channel right after release,” said Chris Caren, Microsoft’s general manager of Office business applications. “We’re doing a lot of work with partners already in the preview.”

SAP said it expects heavy partner involvement on the services side of Duet deals but won’t offer the software to its resellers. “Currently, our target is to sell directly and to sell to large enterprises,” said Sharada Achanta, senior director of emerging solutions marketing at SAP. “We’ve been saying primarily direct. You never say never, but that’s the strategy for now.”