Utilities should not become Net-reliant, says SAP chief

Utilities should not rely on the Internet for a competitive edge in a deregulated market, according to Henning Kagermann, CEO of SAP.

Speaking to delegates at the Annual SAP Utilities conference, Kagermann said the Internet should be used as an extension rather than a replacement of the traditional desktop workplace.

"The Internet is needed in the future but it is dedicated to the distribution of information. It is not designed for storing data or huge transactions. The Internet is helpful and has a place in the future but it cannot be substituted for the business applications companies have in place today," he told the conference.

He said utilities should initially invest in the Internet to extend relationships with each other as communicating with customers over the Web would not happen within the next two years.

Kagermann also announced availability dates for SAP's electronic marketplace, MySAP.com. The portal is currently in the pilot phase and English and German versions will be available first. General availability is expected by January 2000.