SAP News Desk
SAP Takes Big Strides in Small Business and Midmarket Segments
SAP Partner Strategy and Solution Portfolio is Successful in the Small Business and Midsize Company Segment
May. 5, 2008 04:45 PM
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SAP announced growing adoption of its business software
among small businesses and midsize companies across all regions, and in
particular from growing economies as Brazil, China,
India and Russia. The
company's portfolio of business software for small businesses and midsize companies
-- comprised of SAP Business One, SAP Business ByDesign and SAP Business
All-in-One -- continues to attract an increasing number of customers from the
small and midsize market. Currently at about 75 percent of the company's
overall customer base, the number of small and midsize enterprise (SME)
customers grew by 28 percent in the first quarter of 2008 (year-over-year).
With a base of more than 35,688 SME customers -- including
11,700 SAP Business All-in-One customers, 18,690 SAP Business One customers and
150 customer engagements of SAP Business ByDesign in the markets where
available -- as disclosed for the first quarter of 2008, SAP continues to
achieve growth in the SME segment at a high rate. In the first quarter of 2008
alone, SAP gained more than 1,570 new SME customers worldwide, the equivalent
of 26 new customers per working day. In particular, Brazil
and the Commonwealth of Independent States, including the fast-growing Russia, gained
new customers at an impressive rate. India, the fastest-growing country
for SAP overall, reported the highest growth rate in SME software revenues for
a single country.
SAP SME Partner Ecosystem Expanding
In its successful multi-channel, go-to-market strategy, SAP
and partners are equally engaged to help ensure that SME customers benefit from
SAP solutions. Approximately 85 percent of the total number of SME customers is
generated through partners alone. While SAP continuously develops its distinct
solution portfolio for SMEs, SAP partners create added value through their
services, local business know-how and, vertical and microvertical expertise.
With a solid base of qualified SME partners, the company is well-positioned to
meet the growing global market demand in the SME segment. SAP continues to
invest in expanding and further enabling its SME partner ecosystem to help its
partners' businesses thrive. As an example of how the company empowers channel
partners to grow, SAP India
has conducted more than 500 SME roadshows together with more than 200 of its
partners across the country to help make SAP solutions more accessible to the
vast pool of Indian SMEs.
"Our growing customer and partner numbers clearly show
that we have the right strategy of supporting small businesses and midsize
companies around the world, regardless of their business models or industry, in
their quest for success and growth," said Hans-Peter Klaey, president,
SME, SAP AG. "We will continue to foster our ecosystem to the benefit of
our growing customer base. Together with our partners we offer not only a broad
but a deep portfolio of solutions and services that truly makes a difference in
our customers' everyday business actions."
SAP Offerings Deliver Instant and Long-Term Value to SMEs
With all its solutions offering evolutionary innovation and
flexible growth, SAP actively addresses the heterogeneous requirements of
companies of all types and sizes. This becomes possible through the unique
design of standardized but highly adaptable business processes based on one
single technology platform. SAP has been observant in recognizing the specific
needs of SMEs, where proven best practices, preconfigured generic and
industry-specific -- even microvertical -- business processes together with
packaged service offerings help address the major IT challenges for SMEs: low
total cost of ownership (TCO), fast time to value and long-term investment
protection.
SAP solutions for small businesses and midsize companies
include SAP Business One, a single integrated, application for successfully
managing small businesses; SAP Business ByDesign, the software industry's most
complete, integrated and adaptable on-demand solution for midsize companies,
available in a controlled ramp-up process to prospects in six focus countries;
and SAP Business All-in-One, a customizable and extensible solution for midsize
companies with deep built-in industry best practices. In further lowering TCO
for its customers, SAP Business All-in-One solutions are now also available via
the announced fast-start program in an all-inclusive offering comprised of
hardware, database and operating system from selected partners in various
markets. Moreover, customers in the midmarket today are able to take advantage
of the versatile enterprise services approach to IT that allows for quicker,
more flexible adaptation of existing processes, as well as the composition of
new and management of all business processes. Based on the most recent versions
of SAP ERP and SAP NetWeaver, both built in accordance with an enterprise
service-oriented architecture (enterprise SOA), SAP Business All-in-One
solutions offer a compelling scope of services-enabled business processes. With
SAP Business ByDesign, midmarket customers in selected markets can already
benefit from an on-demand solution that is completely based on enterprise SOA
and deliver core end-to-end processes in the shape of enterprise services.
Thus, midmarket companies that select SAP solutions can choose to adopt a true
SOA-based business process platform, while making best use of enterprise
services today.
SAP Proves Best Fit for Heterogeneous Needs of SMEs
Worldwide
With a common desire to globalize operations, drive
competitiveness and boost growth, SMEs in growing economies require a wide
range of solutions from their software provider, all of which are addressed by
SAP. With the growth of the Chinese economy, Chinese SMEs are primarily turning
to SAP for solutions that enable them to effectively run and manage businesses,
and flexibly transform and adapt the complete value chain in accordance with
fast- changing business models. Russian SMEs cite the fast time-to-value and
the benefits of creating end-to-end processes when internationalizing their
businesses. Midsize enterprises in India are experiencing dramatic
growth. Managing growth and transforming themselves to the next level are key
strategic priorities for these enterprises, thus they are adopting scaleable
and flexible IT platforms from SAP. While small Indian enterprises cite
automating business processes and enhancing effectiveness as top priorities,
Brazilian SMEs rely on SAP software mainly for achieving operational excellence
and establishing integrated business processes that allow them to manage growth.
"SAP Business All-in-One integrates our different
internal and external enterprise systems, and supports all operational business
activities," said Wang Yun, assistant to the general manager, Chongqing
Yinhe Instruments Co. Ltd. "With the leading functionality on the basis of
single coding, this integrated business solution ensures that we keep up with
the current market information, make correct decisions and implement them
effectively. With SAP, we have now started our second giant leap after the
reformation of the economic system in China."
Adding to SAP's success in the SME market segment are
companies in countries that are well-developed economically but less so in
terms of IT. In countries such as Hungary
and South Africa,
companies increasingly benefit from globalized business transactions and
enhanced business insight by seizing the power of SAP solutions.
Such companies include MASC Solutions, a solution provider
for security and fire protection that was serviced by SAP channel partner
Bluekey in South Africa.
MASC Solutions managed to gain complete control over its business with SAP
Business One after a very short time and thus set a solid basis for growth. The
ABO Group, a Hungarian holding comprised of businesses in grain and fodder production
with subsidiaries throughout Central and Eastern Europe, recently decided to
deploy SAP partner Hostlogic's SAP Business All-in-One solution for food
processing. According to the company, the most important benefit was a boost in
efficiency when member companies of the holding were able to work within a
unified business process structure. Further advantages included streamlined
administration, precise customer segmentation and organization of sales,
management of materials and stocks that have noticeably increased productivity,
and competitiveness of the entire corporation.
About SAP News DeskSAP News Desk trawls the world's news information sources and brings you timely updates on the world's leading provider of enterprise resource planning (ERP) and its various software product lines used to integrate back-office functions such as distribution, accounting, human resources, and manufacturing.