Despite the increasing popularity of software-as-a-service (SaaS) or cloud-based computing, companies are still hesitant to divert from the usual route of installing traditional software in their IT system.

Such is the case of homegrown conglomerate TAO Corporation which recently decided to pilot SAP Business One in one of its subsidiary, Altus Communications.

SAP Business One is the German software maker’s business management solution
for small and medium enterprises. The software went live on Sept. 1.

According to executives of TAO and its systems integrator, Xcel Software Solutions Philippines Inc., they scoured for options, including SaaS products, prior to the installation but eventually settled on SAP since the other solutions were not able to address the concerns of the company.

Company officials said it remains to be seen whether it would roll out SAP software in the rest of its 15 subsidiaries.

Eyes will be particularly keen on how SAP Business One will fare on Altus, which distributes Nokia products across the country, in its aim to enhance its operations and be more competitive by improving on service delivery and sales support.

According to SAP executives, the new software will allow Altus to gain a unified view of its business and access up-to-the-minute information. This, they said, will help the company to improve on responsiveness, which is crucial in the dynamic and competitive environment of the mobile phone distribution business.

“More importantly, this is an effort of Altus to align its goals with those of our parent company, TAO Corporation, as it leads the fast-growing TAO Community in the area of its core competence -- distribution,” Peggie Sy Tan, project manager at Altus Communication, said in statement.

The conglomerate employs some 3,500 people and has an annual turnover of P27 billion. It is engaged in commodity trading, consumer brands distribution and healthcare as its core businesses.