SAP targets small businesses with new offering

With Business One, the company is providing a solution that bundles many functions into a single package.

By Trefis Nov 9, 2011 1:57PM
SAP (SAP), already one of the largest players in software for large corporations, is trying to reach small and medium-sized businesses with a new version of its Business One planning software.

The company has a majority share of the enterprise resource planning (ERP) software market, where it competes primarily with Microsoft (MSFT), Oracle (ORCL) and Salesforce.com (CRM). We expect its market share to decline marginally through the forecast period, due to increasing competition. (Microsoft owns and publishes Top Stocks, and MSN Money site.)

SAP Market Share in Resource Planning Software
SAP focuses on its forte: ERP

SAP has traditionally focused on ERP offerings for enterprises, but has been looking at other markets to increase sales. It recently launched a new version of Business ByDesign -- an on-demand, cloud-based product -- in a bid to capitalize on the rapidly-expanding market for cloud software. Oracle and Microsoft have also launched cloud versions of their enterprise applications in the past year.


With Business One, SAP is focusing on small and medium-sized businesses with an easy-to-deploy solution that bundles resource planning, customer relationship software, inventory management, reporting, accounting and financial management in a single package.


With Business One, Business ByDesign, and its traditional ERP offering, SAP now offers ERP solutions in all forms and for any company size.


Enterprise resource planning software accounts for around 38% of our $63 Trefis price estimate for SAP, which stands nearly 2% above its current market price.


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