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Cost gains take SAP to small enterprises

Calcutta, Aug. 4: SAP India, the Indian arm of the German software solution provider, plans to provide industry-specific solutions to the small and medium enterprise segment to save on implementation time and costs.

“The small and medium business (SMB) segment is a focus area for SAP and we intend to be the top solution provider in the Asia-Pacific region by 2005,” said Srinivas Rao, industry head for the SMB segment. “SAP has over 6681 installations in the region, of which over 50 per cent belong to the SMB segment.”

The domestic SMB market is worth €130 million with 20,000 companies that have a turnover of less than Rs 350 crore.

“SAP has over 50 per cent market share in the SMB segment. Around 20 per cent of our revenues and 70 per cent of new customer acquisitions are small and medium units,” said Rao.

The firm expects a 15-20 per cent growth in business from the small and medium enterprises. “Though these companies are small in size in terms of turnover, they have the functionality of a big organisation,” said Rao.

SAP has launched All-in-One, a pre-packaged industry-specific version of the mySAP business suite for these enterprises, which saves 40 per cent time and 30 per cent cost compared with traditional implementations.

The solutions will cater to the pharmaceutical, chemical, engineering and construction, automotive and textile industries. “We plan to have 23 industry-vertical solutions after gauging the response,” said Rao.

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