SAP bets big on mid-market segment to drive revenue growth

Sangeetha Chengappa Bengaluru | Updated on January 24, 2018

Ravi Chauhan, Managing Director, SAP India

Launches next-gen enterprise software, SAP S/4 HANA

Ravi Chauhan, Managing Director of SAP India, says revenue for the company this year will be driven by the mid-market segment.

The company, which has established a dominance in the large enterprise market segment, is looking to extend it to the mid-market segment which it defines as organisations with less than ₹1,500 crore in revenue.

“Today, 50 per cent of our business accrues from net new customers in the mid-market segment and we are looking to increase that. While our traditional sweet spot has been the large enterprise segment, the scope of adoption of SAP technology in the government is huge for us, given the Digital India initiative, making it a very important vertical for us, although it is not our biggest customer segment today,” Chauhan told BusinessLine.

On what mid-market customers are buying, he says, “Avon Cycles for instance, uses HANA, our in-memory, relational database management system that is designed to handle both high transaction rates and complex query processing on the same platform.

“Many of our mid-market customers are buying HANA & Analytics for the ability to analyse their businesses. While ERP is our core product where we see regular business, some of the products that are seeing a lot of traction are SuccessFactors, our strategic HR product; Ariba, which is our procurement solution that is being lapped up by companies that are becoming a part of the global supply chain; and Hybris, which is used by e-commerce firms to integrate their front-end shop-front with their warehouse management, logistics, supply chain, etc.”

On what would constitute a year of good performance, Chauhan says: “If we are able to go beyond just driving topline growth and bring new solutions to the market such as SuccessFactors, Ariba, HANA and Hybris, and drive their adoption in the market that would constitute a good year for us. These are the four products we are really focusing on, where we are seeing maximum growth.”

Enterprise software

SAP has launched a new generation of enterprise software, SAP S/4 HANA, which is designed to help enterprises take real time business decisions by accessing the capability for planning, execution and simulation from within the business application.

The S/4 HANA software is designed on the most modern design principles with the SAP Fiori user experience for mobile devices, including smartphones, tablets, laptops and desktops to appeal to the new generation workforce.

The development of S/4 HANA was a global collaborative project that leveraged on the talent pool at SAP Labs India. “The India team contributed to the development of the core architecture, Fiori UX, Applications and Platform,” says Chauhan.

Published on February 13, 2015

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