SAP SME Day: Glenn Wada with business update

After an intro by Jeff Stiles, SVP SME Solution Marketing, Glenn Wada, GM US Strategic Growth Enterprises Group, gave us a business update on SAP’s small and medium enterprise (SME) efforts.

75% of SAP customers are SME, although only about 30% of software sales (>1B Euro). SAP defines SME is anything under $1B in revenue, regardless of which product that they’re using, then further stratify that into “small” (under $50-60M), “medium” (up to $300M) and “upper middle” ($300M-$1B). This latter “UME” band is served by the standard SAP direct sales channel, whereas customers below $300M in revenue are served by Wada’s group, which uses a hybrid direct-channel sales model. SAP owns about 30% of the SME market, and continues to grow this market share through their focus on high-growth verticals: high technology, renewable energy, oil & gas, life sciences, services, and retail.

Taking look at the product suite, the SME offerings are Business One, Business ByDesign and Business All-in-One (although keep in mind that some of the UME’s are likely using the SAP enterprise products since the SME distinction is made by revenue, not by product). SAP believes that they can continue to service a company as it grows by shifting them from one product to another — although I’m sure that the transition is anything but painless, if they’re a competent incumbent, they have a good chance of keeping customers as they out-grow the lower-end products.

There will be more detail on the SAP SME product portfolio throughout the day, but here’s a summary:

Business One

  • Single business application
  • 20k+ customers
  • Targeted at small businesses; these businesses are looking at moving to ByDesign or All-in-One by the time that they hit $50-60M in revenue

Business ByDesign

  • Complete, adaptable
  • On demand service
  • 150 customer engagements
  • New business model
  • Focus on 6 key markets
  • 5,500 registrations

Business All-in-One

  • Configurable and extensible
  • 12,300 customers
  • New release based on business process platform, including CRM

I’m a newbie to the SAP SME space (and don’t really know all that much about SAP’s enterprise products either, except as I bump up against them in some of my large clients), and I definitely feel like the least-informed person in the room.

One thought on “SAP SME Day: Glenn Wada with business update

  1. I’d be interested to see how effective your hybrid direct sales method is compared to the strict direct sales channel (normalized for revenue of course). I’m sure you have your reasons and you have presented the data well — you definitely don’t sound like the least informed.

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