Asia-Pac a growth area for SAP

SAP president of customer solutions and operations Leo Apotheker views Asia Pacific as a key growth area for the company. 

“We want to be a company that can serve all customers; small, medium, large and in every country and industry,” he said during his keynote address at SAP’s Asia Pacific Field Kick Off Meeting 2006 in Singapore recently. 

He said the company had plenty of opportunities to grow business especially in the small- and medium-sized enterprise (SME) segment in Asia Pacific.  

Apotheker, who is also SAP's executive board member, said the global software licence revenue market in 2005 was worth US$15.8bil and projected the addressable software market to grow to US$70bil by 2010. 

Leo Apotheker

He said SAP Asia Pacific recorded a total revenue of Euro ?1bil for the first time last year as a result of strong software revenue growth, which rose 25% to Euro ?363mil last year compared with ?289mil in 2004. 

The company recorded eight consecutive quarters of double-digit revenue growth over the past two years. This year, it is aiming to grow product revenue by 13% to 15% and software revenue by 15% to 17%. 

SAP Asia Pacific president and chief executive officer Hans Peter Klaey said SAP Malaysia grew in the SME space last year with some major customer “win backs”.  

Declining to name the companies, he said the focus this year would be to grow the SME business in Malaysia two to three times faster than the market. 

“SMEs' want to grow profitably and they want robust, innovative scalable systems. SAP has a lot to offer in these areas and we want to accelerate that,” he said, adding that SAP’s Asia Pacific market share had increased from 46% to over 70% in the past three years.  

Inline with growing its business in the SME segment, the company has introduced SAP PartnerEdge, a next generation channel program for its partner network.  

The multilevel program is designed to enhance infrastructure and business support for resellers, independent service vendors, value-added resellers and other partners who market, develop, sell and implement SAP solutions. 

Klaey said SAP Asia Pacific's SME channel based business grew impressively with more than 1,100 new customers last year. He said the SME business in the region formed over 50% of the group's total revenue.  

Going forward, among the verticals to be targeted by SAP would be financial services, retail, high technology and the public sectors. SAP aims to achieve a customer base of 150,000 from the present 35,000 by 2010. 

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