SAP's new product, SAP Business ByDesign, is an on-demand product, the success of which seems to hinge primarily on the strategy of the company. Not only revealing to the world a new on-demand product, SAP is also revealing to the world a new era for the company. Built on SAP's NetWeaver, SAP Business ByDesign is a service-oriented architecture application that is intended to be utilized by individuals who are looking for end-to-end, flexible and adaptive business processes. A month after the product was announced, SAP expressed their plans to purchase the company Business Objects. There has been a lot of growth and potential when it comes to SAP, but it will be critical to see what kind of stance the vendor takes when it comes to a full on-demand ERP package. There has not been a great deal of noise in the market for such a product as the SAP Business ByDesign. While some individuals might appreciate it, it is not clear whether or not the creation of such a product by SAP would translate into success for the company. The market of on-demand services is heating up and many new companies are eager to get involved in the competition. How the evolution of SAP affects the company will hinge primarily on how SAP handles all their intended changes. The channel bringing in the technologies and changes taking place in and surrounding SAP will need to be very powerful and clear in order to appropriately appeal to the public and the on-demand market.