SAP expects the midmarket sector to drive
its revenue growth in the coming four years, as the business
software giant gets a boost from its lineup of new products this
year, the company's chief executive said Thursday in the United
SAP, which classifies the midmarket as customers with fewer
than 2,500 employees, anticipates half of its software revenue
will come from new products by 2010; midmarket companies are
expected to account for 40 percent to 45 percent of its total
software sales, rising from its current level of roughly 30
"We're No. 1 in the midmarket, and nearly 50 percent of IT
spending will be there. It's a key focus for us and a market
where we've dedicated products," Henning Kagermann, SAP chief
executive, said during a presentation to developers and reporters
SAP believes its midmarket sales will be fueled by such
products as "Mendocino," a program being tested that links
Microsoft's e-mail and calendar programs with SAP's back-office
During the next four years, SAP anticipates finishing up plans
for its Enterprise Services Architecture (ESA), as well as its
MySAP all-in-one business process platform.
Kagermann said that many of the changes that are expected to
come in the next four years will build off the achievements of
last year. Last year "was an extremely successful year for SAP,"
In 2005, for example, the company increased its market share
while also delivering ahead of its plans for ESA, he noted.
Also last year, the applications giant dished up its
next-generation MySAP business suite and its service-enabled
suite for NetWeaver.
SAP, which caters to large business customers, intensified its
midmarket efforts in early 2000, said Leo Apotheker, who heads up
the company's sales and marketing.
As the company expands its efforts in the midmarket arena, it
will be looking to the Asia-Pacific region, which is largely
composed of midmarket customers, Apotheker said.