The largest business software company in Europe, SAP, has
announced that it is ending Pandesic, a three year old joint
venture with chip manufacturer Intel due to the venture failing to
make a profit. Pandesic operated as an e-commerce Application
Service Provider (ASP) for small businesses.
A spokesman for German based company SAP said: “We saw that the
Pandesic business model could not be profitable in the necessary
period of time. Pandesic will be shut down.” Pandesic LLC, the
company set up by the joint venture, blamed slower than anticipated
market acceptance of business-to-consumer e-commerce solutions.
Pandesic employs approximately 400 employees and has offices in
the UK, the US and Japan. Employees are to be offered a severance
package and assistance to find new positions.
The announcement helped raise SAP’s share price by about 2%, the
market perceiving the closure of the joint venture as a good
decision.
