SAP – looking beyond SMEs for growth

G Naga Sridhar Hyderabad | Updated on February 14, 2011 Published on February 14, 2011

Mr Tom Kindermann

SAP India Pvt Ltd is now looking beyond small and medium enterprises (SMEs) to offer its solutions.

“We have over 3,590 SME customers in India. While we want to expand this customer base further, we want to tap potential in enterprises which over $300 million in revenue,” Mr Tom Kindermans, Senior Vice-President - Ecosystem & Channels – Asia Pacific Japan, SAP Asia Pte Ltd, told Business Line.

Focus on enterprises

Till recently, SAP was focussing on enterprises which were less than $300 million in revenue. “The reason for this is the idea to provide a complete stack of solutions to our customers. We are also looking at monetisation of our solutions, among others,” Mr Kindermans said.

At present, SAP is offering its solutions to 26 industries including pharmaceuticals and retail.

“We are present in all most all major sectors. We are working on building more offerings for SMEs in manufacturing and public sector where we are highly successful,” he claimed.

SAP was also looking for more partnerships in these segments.

On the competition, he said though SMEs market was now ‘fragmented,' his company would believe in its consolidation soon.

When asked about ‘relatively higher' pricing of SAP in comparison with its competitors, he said: “We take all competition seriously but it is not our ambition to be cheaper in price.”

On the growing patronage for cloud computing-based applications, Mr Kindermans said: “We fully embrace could computing. Our complete technology stack is ready for cloud.”

However, on-premise computing was still bigger than the cloud for SAP as of now, he added.

The demand for cloud-based solutions in areas such as inventory optimisation, carbon emission management were growing faster, the SAP functionary said.

On the likely demand trend in future, he said customers would continue to run the core processes on on-premise computing.


The Germany-based company, which employs over 5,000 in India currently, plans to ‘invest heavily' in Indian operations.

It runs a research and development centres in Bangalore besides an office in Mumbai, among other locations.

“From capacity perspective, we can ramp up much faster in India than China due to language strength. We will be investing in expansion,” Mr Kindermans said while declining to share any numbers.

Published on February 14, 2011
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