The Hindu Business Line : SAP sees opportunity in public, utilities sectors

Bangalore, May 3 Business software maker SAP said slowdown-hit customers were now looking to invest in technology that offered quick return on investments and enabled cost reductions.

“After the initial shock of the economic meltdown, customers are now thinking where can I save money,” said Mr Joachim Hechler, Corporate Officer of the SAP Group, Member of the Executive Council. “They are looking to invest in infrastructure and streamlining processes.”

The customers are much more focussed, and the value proposition must be very clear to them, said Mr Hechler. If there is value, decisions are being taken. These are the kinds of investments the customers will go for, he added.

Mr Hechler said SAP sees huge opportunity in the public and utilities sectors for its product Business Suite 7. These sectors are relatively less affected by the financial crisis and can still buy the full suite, he added.

“Public sector is investing in improving infrastructure. It is a real strategic market for us,” said Mr Hechler. He declined to comment on the kind of business SAP expects, but said he was optimistic. SAP has some 3,800 customers in India of which 2,900 are high and mid-market customers, while 900 are large enterprises.

SAP is also seeing demand from existing customers for additional components that can be integrated with the suite. These solutions enable users to get more benefit out of the solution that they have already implemented.

Additional tools

Mr Hechler said customers are looking to buy additional tools such as the global trade system that helps customers manage duty, the global risk management tool, the environment health and safety tool and recycling management tool among others.

“It helps them get extra benefit out of their investments. It allows them to monetise their investments, and if they are being able to do so, they are still investing on the top of the existing suite,” said Mr Hechler.

Asked if a recovery is in sight, Mr Hechler said, “I think it is still a bit early to talk about when the industry will recover. From my perspective, you should handle it with care.”

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