This post comes from Don Fornes of Software Advice, a web site that compares and reviews manufacturing software.
Throughout its existence, SAP has been known as an enterprise-class applications vendor – one that sells only to really big companies. At the same time, SAP has attempted – through marketing, channels and development – to move “down market” into the realm of small and mid-size enterprises (SMEs). Today, that strategy has resulted in a portfolio of software solutions that might need some explaining. I’ll give it a try.
Before we dig into the SAP portfolio, it’s important to understand a few things about the SME market:
- There exists a range of SMEs and one-size does not fit all. A $750 million SME has very different needs than a $10 million SME.
- The smaller the SME, the less likely they are to adopt complex technology. When they do get into technology, they typically like Microsoft platforms (e.g. .Net, SQL Server).
- SMEs were the first to adopt software as a service (SaaS), and that model continues to gain traction within the SME market. Any SME strategy must include a SaaS strategy.
The implications of those three points for SAP were that SAP could not just “re-package” its core SAP Business Suite – the “big company product” formerly known as R/3 – and call it an SME strategy. SAP actually tried this throughout the 1990s, but in 2002 they started on a new path toward specific solutions designed just for the SME market.
You can read the full article here: SAP’s SME Solutions – A Guide to the Product Profile.
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