It’s finally time to call a spade a spade, or in this case, a soon-to-be has-been a has-been. Of course, doing so after the fact sounds too spiteful, so I’m going to do it well ahead of the curve. While these kind of predictions are hard to get right, I think I’m calling this one correctly, based in part on a similar call I made five years ago.
My prognostication is about Salesforce.com, and here goes: Salesforce.com is the next Siebel, the next CRM has-been, the next low-priced software buyout opportunity, unless somehow the …
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SAP: Keine Web 2.0-Funktionen in diesem Jahr
Der Walldorfer Softwareexperte will den Mittelstand für sich gewinnen. Dazu soll unter anderem das Frontend mit Web 2.0-Funktionen angereichert werden. Doch in diesem Jahr wird dies nicht mehr geschehen.
“Eine unserer größten Wachstumschancen sehe ich im Bereich der Unternehmen mittlerer Größe”, erklärte Jeff Stiles, Vice President für ERP-Marketing bei SAP, diese Woche auf einem Meeting in Frankfurt am Main. “Unsere Werbestrategie unter anderem in allen großen deutschen Fernsehsendern zielt konkret auf den Mittelstand”, pflichtet ihm Tobias Dosch, Senior Vice President für Solution Management ERP des Walldorfer Softwarehauses, bei. Beide kennen aber auch das Problem, dem sich die SAP in diesem Marktsegment gegenübersieht: Bei Mittelständlern gilt ERP aus Walldorf als zu komplex und überdimensioniert.
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I think the advertising strategy is not really a competitive field for SAP but nevertheless the revenue they create with this is very impressive…and primarily what they do with it afterwards…
May 24th, 2007
Posted by Donna Bogatin @ 10:29 amCategories:
While the world expresses “shock and awe” over Google CEO Eric Schmidt’s ”Big Brother” reveries uttered across the pond in Europe last weekend, courtesy of “dead media” Financial Times, I actually heard the Schmidt ”personalization” routine live and in person in New York City last Friday, at the Personal Democracy Forum.
Over the past week, I have reported and analyzed both the Google CEO’s keynote and Google’s paid sponsorship mission at the Forum, at length:
Google CEO Schmidt on ‘Personal Democracy’: Up For Sale
Google sweet talks its way to political power
Google CEO on Education: Google Search is key
Google: John McCain’s secret campaign weapon
continue at zdnet!
From the IDC Analyst Blog on Henning and our SAP strategy in the SMB market…
Two years ago, SAP’s CEO Henning Kagermann told me that he did not foresee any major shift in the company’s large business vs. SMB revenue mix: “We have today a 70%/30% revenue mix. Next year, it might be 68%/32% – that is not a revolution.”
His rationale was that the large enterprise business was such a big focus for SAP – and would continue to account for so much of the business – that any SMB progress would seem marginal, relative to SAP’s overall growth. As it turns out, he was right: in the subsequent two years, the mix didn’t change that much; at this year’s SAPPHIRE, Hans-Peter Klaey, the president of SAP’s new SMB line-of-business, said that today’s SMB share of SAP business is around 30%.
But, as we anticipated last year, things have clearly changed at SAP – in the priority that management is putting on the SMB market, and in terms of what SAP is prepared to do to compete successfully. SAP has a high-priority, well-funded push down into the SMB Long Tail. Based on SAP’s behavior in the past six months – punctuated by last week’s SAPPHIRE customer event – Kagermann and team seem to have a revolution of sorts in mind, revolving around a high-priority, well-funded push down into the SMB Long Tail, defined in part by three key elements:
- New SaaS-optimized SMB Offering: As we predicted six months ago, SAP is developing a brand new application suite for the midmarket, dubbed “A1S” – that will initially be available only as an on-demand (SaaS) offering. Featuring usage-based pricing, and online delivery, this offering should be considerably better positioned for midmarket adoption than SAP’s current A1 (on-premise only) application suite.
- New SMB Go-to-Market approaches: The biggest changes, and challenges, of A1S will be in the go-to-market model. The new offering will require new marketing messages and approaches; new pricing models; the introduction of more high-volume, transactional sales processes; the expansion and education of the SMB channel and partner ecosystem; and a refresh of the rules of engagement between SAP and its channel partners. SAP has earmarked 300-400 million euros of investment around the A1S launch, of which SAP has only spent around 10% or less thus far; my guess is that the go-to-market overhaul will take the lion’s share of this investment and the lion’s share of the launch timeline. The need to develop new go-to-market approaches for the SMB sector was, no doubt, a key factor in SAP’s creation of a new, globally integrated SMB Line-of-Business last November.
- Ambitious SMB Revenue Goals: Betting in large part on the success of the A1S offering – which will be announced in the Fall, but probably not widely available until 2008 – SAP has predicted that software sales to SMBs will jump from less than one billion euros in 2006 to two billion euros in 2010. By my estimate, that means SAP will need to generate about three times the SMB sales for each of the next four years, on average, than they did in the last two years – a pretty tall order.
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