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Thursday, November 11, 2010

SMEs representing fastest growing business for SAP unit - Central America, Mexico

SMEs have represented the fastest growing segment so far this year for the Mexico and Central American division of SAP (NYSE: SAP), the division's director general, Diego Dzodan, told BNamericas.

SAP Mexico and Central America currently boasts a client base of 3,200 companies, 70% of which are SMEs, according to Dzodan. BNamericas previously reported that the division started off 2010 with 3,000 clients and was expecting to increase that figure by 20% during the course of the year.

"Among SMEs, the biggest trend that we are seeing is the standardization of back office processes," he said. "There is a big focus on ERPs."

In the upcoming quarters, the division will continue to recruit new channel partners to target the SME segment, Dzodan said, adding that SAP is aware that the availability of financing can also make or break deals.

Meanwhile, the SAP unit is seeing very few large-scale ERP projects among large enterprises, but rather technology projects focused on specific areas.

Dzodan noted that, for example, manufacturing companies in Mexico are increasing their technology investments to improve logistics, while energy companies are looking to strengthen both the commercial and operational sides.

SAP Mexico and Central America's priorities include reinforcing the company's global strategy of offering solutions through traditional implementations, mobile devices and also cloud computing, according to Dzodan, who assumed his role last month.

Still, the executive acknowledged that cloud computing up-take so far in his division has been "marginal."

"Cloud computing is still not an area that has significant volume. It's very marginal," he said. "There is more of a conceptual interest than a concrete interest in projects."

Cloud computing provides value for specific components of a company's IT set-up, rather than "taking something out of the heart of a company and then putting it on the cloud," Dzodan said.

SAP Latin America
saw software and related services revenues jump 21% year-over-year during the third quarter. Globally, the company saw profits jump 12% to reach 501mn euros (currently US$684mn), while revenues rose 20% to reach 3.0bn euros.

Source: Business News Americas
www.bnamericas.com

By Matthew Malinowski / Business News Americas

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