SAP banks on SMBs to tap 50 percent revenue income
By siliconindia   |   Monday, 19 July 2010, 17:15 IST   |    1 Comments
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SAP banks on SMBs to tap 50 percent revenue income
New Delhi: SAP is eyeing on more than 50 percent of its revenue income from the small and medium business segment (SMB) in the next three to four years after having launched its advanced on-demand services. Presently, SMBs accounts for 35 percent of its total revenue and they constitute 75 percent of customers, with the total base being about 4,000, reports Debjoy Sengupta of the Economic Times. "SAP has launched 'By-Design', a full suite of solutions for SMBs. This is an on-demand software where users pay on the basis of their usage of the software. On-demand services was launched by SAP about two years ago and we had just about three clients. Last week, By-Design was launched in the UK, France, Germany, U.S., China and India. Following this, we expect larger revenue inflows from the SMB segment companies with a turnover between 60 crore and 500 crore," said Franck Cohen, COO, SAP. There are many areas, where the company wants to focus. analytics is one of the areas to be concentrated by the company. There are companies with terabytes of data stored on their servers but don't have the wherewithal to analyse and derive meaningful direction from the data. Sustainability is another area, where the company wants to focus. "We expect revenue contribution from on-demand services to rise with time and the number of SMBs in our client list will gradually rise. I feel, at least 50 percent of the revenue will be contributed by the SMB segment over the next three to four years. This figure now stands at about 35 percent," said Alok Goyal, COO at SAP for the Indian Subcontinent. SAP is trying to seek opportunities with the public sector undertakings, state government, municipalities, telecom companies and professional services companies.

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