| QUESTION & ANSWER |
SAP too big for SMBs? Hogwash |
 |
By Ellen O'Brien, News Editor
24 Sep 2004 | SearchSAP.com |
|
|
As SAP's director of small and midsized solutions, Pat Hickey has to convince SMBs that SAP can meet their needs without too many headaches or too many costs. Eliminating the market perception that SAP is simply too big or too expensive for SMBs is a big part of Hickey's job. Recently Hickey spoke with SearchSAP.com about SAP's vertical micro-strategy, and what All-in-One can do for SMBs.Is it a challenge convincing SMBs that SAP is not too big for them?
Pat Hickey: There certainly is a perception in the market right now that SAP is only for large customers. That gets refuted quite easily once we just look at some statistics on the matter. If you look at smaller companies that are below $200 million, that's 37% of our install base. The reality is that most of our install base is the small and midsized customers -- that makes sense. We have 20,000 customers and, at last count, there were only 100 Fortune 100 companies.
How tough is it to recruit channels for SAP's All-in-One?
Hickey:
It's reasonably manageable recruiting channels into SAP at this point and time. Given the success and the penetration that SAP is beginning to make in the SMB, we do have the momentum on our side.
Our channel strategy is really about trying to get vertical. On a global basis, we have about 400 partners that are representing and selling All-in-One. Of those 400 partners, they have developed about 360 micro-vertical solutions to target various industries. In the U.S., it's about 35 and growing.
An important thing is that we're not adopting a massive channel strategy. We are looking at a smaller channel that will help develop strong vertical solutions. We aren't adopting a strategy in the U.S. that is going to flood the market with 200 channel partners.
How do you distinguish between All-in-One and Business One -- SAP's other SMB solution?
Hickey: In general, the SAP Business One solution is targeted for companies that need a generic footprint for ERP [enterprise resource planning]. It's tough to really state that Business One is for companies with $10 million or more in revenues, and All-in-One is for smaller companies.
If a company has hardcore industry requirements, it can be an All-in-One customer.
Do the pre-configured scenarios in these micro-vertical markets leave customers worried they won't be able to customize?
Hickey: If they ask 'Am I limited within the pre-configured scenarios?' the answer is 'No.' If the customer wants to change it somewhere down the road, the scenarios are scalable and flexible. They tend to see it as a 1-2 punch. They can get a chance to meet get a solution to meets their needs now -- and it can change with them.
How much do they care about NetWeaver?
Hickey: In the small and midsized world, their minds are on solving a business issue. We are talking to business leaders, not the IT leaders. We generally don't walk in with a technology pitch involving NetWeaver. What happens is that they describe a business scenario where NetWeaver plays wonderfully.
MySAP All-in-One does come with NetWeaver. Most of our partners have built these preconfigured scenarios on top of NetWeaver.
What are your overall revenue goals for SAP All-in-One?
Hickey: The goal within SAP is to have15-20% of our overall revenue coming from SMBs.The board has put this out as a challenge for us.
How does Microsoft factor in - they are very strong in the SMB market.
Hickey: First of all, they are a great customer of ours. Second of all they are a great partner of ours with SQL Server etc. And last, definitely last, they are a competitor. We think that the SMB business is, quite frankly, large enough to accommodate lots of competition.
This interview originally appeared on SearchSAP.com
|
