New Delhi, August 17: Global enterprise solutions provider SAP has been making efforts to get into the SME market through the partners-led strategy.
The company is banking high on its S4 HANA, a new generation ERP solution, which will drive the momentum into the SME, mid-markets and SMBs. It has plans to double the size of its addressable market by 2015. At the recent 6th SAP Channel Summit, 2015 in New Delhi. Anthony Mc Mahon, SVP, Global Partner Organisation(GPO), SAP Asia- Pac-Japan, and newly appointed Avinash Kumar Purwar, VP, GPO, SAP India, talked about how the SME market has been becoming a critical market for the SAP. The company has invested in channel development and working towards aligning its channel for its vast solutions offerings be it on premise and cloud.
“We want to double the size of our addressable market by 2015,” senior vice president, global partner operations, SAP Asia Pacific & Japan, Anthony McMahon said. “By 2015, at least 40% of our software revenue will come from partners,” McMahon said.
With more than 420 partners, SAP provides both local and worldwide support for all SAP markets and solutions to help fuel innovation and provide choice for customers of all sizes. By 2015, at least 40% of SAP’s software revenues will come from partners.
SAP announced an integrated approach to strengthen its newly launched OEM and ISV programs and encouraging partners to leverage the managed cloud as a service model to provide enhanced value to businesses.
India centric channel initiatives
As channel is the only way to address the SME customers’ need for SAP. The company is pushing partners not only for high profitability, but it is building new capabilities for new opportunities. “There are couple of programs, we were the first to launch for the local partners. The ‘Net New Customers’ program is an extension of our traditional partner model, where we used to work with the partners for the service and implementation piece. Having said that, based on partners feedback, where they want less intervention of SAP team and want to work with customers from the scratch till end. The new program helped our partners to register the deal opportunity, and later they close the business.”
“In return, we give them additional rebate which helps in profitability and helps them in cost of pursuing that business. Initially it was rolled out in India exclusively, in August 2014. We have seen that portion of this business come through this program, from 1-2% and now in SMBs it’s up by 30%. Another one that would be rolled out soon is Partners Academy For Cloud. We are working with SAP Education to provide the cost effective curriculum and certification to them get many consultants certified through the program. It is highly attractive for partners to take the consultant through the cloud certification and with new curriculum and content at a very affordable price point,” explained Mc Mahon.
Today, the entire SAP partner ecosystems is spinning around Build, Sell, Service and Run across different partners category. With the emergence of IoT, Mobility, analytical and Social, SAP has been undergoing through transformation to meet the customers requirement and looking beyond enterprise
“We are helping customers in run the real time, run network, and then run simple. It is the heart of the strategy, we need partners to support this roadmap. For different customers, in the SME segment mid markets and SMBs, our stated GTM is 100% through channel. To back our partners, we do demand generation, telemarketing, social media and events. Customers are aware that we do have solutions for SMBs. In last six month more than 90% of the new customers have come from SMEs. Still, market perceived SAP as we are large corporations and large public sector govt entity focused, but with the help of our partners. We are going closer to the SMEs,” reiterated Mc Mahon.
Sharing the response to the SAP Ambition Express Bus, a bus tour, which visited close to 50 cities in 12 month, Avinash Kumar Purwar said, “We first started off as Innovation Express and recently we concluded Ambition Express. We are going back to small companies to tell them you have ambition to become large companies. Our partners played a key role to get the customers on to the bus. We showcased on premise module ERP and S4 Hana, is one of the key drivers, to create the digital offerings in the SMBs and cloud offerings. We want to be relevant to the SMEs customers and looking for incremental growth in SMBs.”
How SMEs looking cloud offerings
SMBs are seriously evaluating SAP cloud offerings. But it is still treading the path and creating awareness. “In the first phase, we want to create awareness about our cloud offerings. Majority of the companies still looked at as traditional ERP and CRM provider.There has been a good traction in the market for cloud offerings and point product. We are trying to address that we are no longer a ‘premium brand’ and our different channel is helping us to diversify into the all set of 25 identified industries. India contributes highest portion of SMEs business in Asia,” Avinash Kumar Purwar concluded.