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Jason C

Now add the fact that SAP says that orders from mid-sized business will climb to 40-45% by 2010 from the current 30%...

>I take this to mean 40-45% of order entry, if we stick with how the SMB/Enterprise split has been reported in the past
>Does "mid-sized" map to SAP's prior definition of SMB, all businesses below $1 billion in annual revenue?

Wouldn't order entry from SMB need to increase just a tad more than to 45% of total? Are we to beleive that SAP over the next 4 years will be adding a $1+ billion customer EVERY HOUR?

Will the goal be reached by a shift toward a more SMB focused model, or are we going to get a new definition of what constitutes a "new customer"?

Dennis Howlett

Indeed...Microsoft has a LARGE channel that brings home approx $1 billion - not bad for a company that's not exactly brilliant at executing in biz apps. SAP's channel is much smaller but even then it isn't exactly bringing home the B1 bacon.

Roman Rytov

Jason, please stop by the Discovery System pod at Sapphire. I'll be assisting there and will be happy to meet you.

Jason Wood

Den,

It's really endemic of all traditional enterprise software vendors. But there is two enormous differences between SAP and Microsoft in this regard. 1) Microsoft already has a real presence in almost every SMB via its productivity suites. Granted, they have not done a great job at migrating those users over to more functional apps, but they have an established channel for it. 2) SAP is an apps vendor; they are more susceptible to the maturation of the high end than any other member of GISMO. Oracle has database and middleware, Microsoft has productivity, mobile, gaming, servers, tools, IBM has services obviously. But what does SAP have? Nada unless they can sell apps to new customers.

J

Dennis Howlett

This is precisely the same problem Microsoft believes it is faced with.

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