SAP is the 3rd largest software vendor in the world after Microsoft and IBM. With 38,000 large global companies as clients, they are quickly becoming a victim of their own success and are now targeting small businesses to continue their growth.
Yesterday SAP announced that it's going to spend as much as 400 million euros, roughly $520 million, over 2 years to create an organization that can sell to small business clients. With this new move, SAP is expecting their profit margin to drop by 3-4% this year and they will come up against a number of obstacles selling to small businesses including:
Yesterday SAP announced that it's going to spend as much as 400 million euros, roughly $520 million, over 2 years to create an organization that can sell to small business clients. With this new move, SAP is expecting their profit margin to drop by 3-4% this year and they will come up against a number of obstacles selling to small businesses including:
- There are more SMB's to target and their needs tend to be more varied
- SMB's require bigger sales and support teams
- SMB's typically also take longer to make buying decisions
- SMB's require more intensive sales advice than larger enterprises
Labels: IBM, Microsoft, obstacles, SAP, selling to small business, software vendor, targetting small businesses
1 Comments:
SAP can Tackle the small business Market. but it has to decrease the price. i am also in software marketing in india and i have faced many small business enterprenure. the lowest price which SAP interduced in market that cost is around 50,000$. the people in small business hesitate to adopt the technology. where as the small companies in local market can provide the same facilty in .net and VB with a affordable price. they can provide it in a range of 10,000$ to 30,000$. so why small business people ready to adopt SAP?also there are readymade things avilable in market. just example HR and pay role, Inventory, accounts.i think almost all module avilable in market. also small companies integrate all the modules and say it ERP. so my suggestion is if you are going to target small business people in countries like india, pakistan, china, banglades in ASIA pacific then u have to decrease the price.then only u can tackle competitor.
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