SAP aims to capture SME market

by Andrew James

As part of its ongoing efforts to increase its presence in the mid-market sector (an area which it has marked out as being critical to its plan to increase its customer base from 30000 to 100000 by 2010) SAP AG has created a global SME business unit.

The company is constantly trying to establish itself as a credible mid-market player but in some circles it still has a stigma attached of being too costly and too complex. The launch of a Global SME operation will be seen as a fresh initiative aimed at breaking down its large enterprise-only image. From now one SME businesses will be managed globally as opposed to on a local or regional scale. The new division aims to oversee SME-related sales, marketing and operations, and resource allocation with the purpose of creating an integrated go-to-market strategy, targeting direct and indirect channels.

The unit will be headed by Hans-Peter Klaey who has been president and CEO of SAP Asia Pacific since January 2002, and before that was managing director of SAP UK Ltd. As president of the unit he will report to Leo Apotheker, president of customer solutions and operations, and a member of the SAP AG executive board. The rank of those involved in the reporting line will also give a clear indication of just how serious SAP is about the SME sector.

At present; due to an underdeveloped partner channel and the fact that both SAP Business One to mySAP All-in-One use entirely different code bases, there is no seamless upgrade path for growing businesses looking for a progression applications. With this in mind the company has a lot of work to do in the SME sector.

Making SME one of three growth engines for the 2010 vision requires SAP AG to do things we have traditionally not been good at. However, it is hoped that the Global SME unit will bring the necessary discrete skills and expertise and points to SAPs existing SME customer base as proof that it can succeed in the sector.

According to SAP, 65% of its customer base is SME companies, but in terms of revenue it is about 45%.