Plattner had said in a meeting at the Hasso Plattnet Institute in Potsdam that software delivered as a service over the Internet would present a critical challenge to traditional on-premise business models.

This model will compete with our current model, and 99% of our installations are on site, Plattner said in his Postdam address.

But Plattner said in a statement afterwards that he wasn’t specifically referring to SAP’s new A1S on-demand offering.

SAP is planning to launch new on-demand versions of its business applications aimed at small and medium sized businesses early next year under the codename A1S.

At no point in my speech did I mention the project code name A1S. Nor did I make a statement that our new softwarewill cannibalize our existing customer base or our established products or that it will compete with our current business model, Plattner’s statement read.

Plattner said that to draw this conclusion from his speech was wrong and totally misleading and he reaffirmed his full support for SAP’s management team and business strategy, particularly our SME [small and mid-sized enterprise] strategy.