SAP India, the Indian subsidiary of German software major SAP, is looking at the availability of software applications over the Internet "cloud" and localisation of its product offering to expand its presence in India. At heart of the SAP's strategy is a realisation that an ever increasing army of SMBs (small and medium business enterprise that employ anywhere between 1 and 999 people) that does not want to invest on information technology (IT) infrastructure but still wants quality IT solutions on the cloud.
Cloud computing refers to the availability of software solutions over the Internet on a pay-per-use basis.
In fact, SMBs already contribute a major chunk of SAP India's customers.
Of the total 4,700 customers of SAP India around 78% are SMBs and with increasing IT adoption this number this share is set to increase further.
"Use of IT in Indian businesses is more mature than other emerging markets such as China," Simon Dale, senior vice president, SAP Asia Pacific-Japan told Hindustan Times.
There are 4 million SMBs in India.
SAP India understands that it needs to be quick to cash-on the first mover advantage. The company has already tied up with IBM to make available on cloud the SAP customer relationship management (CRM) rapid deployment solutions, which offers solutions to a company in the management of its accounts, contact, opportunity and performance.
The company would also offer Hindi language support to its applications with a specific target on the public sector units.
Dale said that SAP had last year, identified cloud computing, mobility and in-memory computing technology as its three major revenue drivers over the next five-years. The strategy is a part of the company's plans to increase addressable market space as SAP plans to increase the revenue share from businesses other than ERP (enterprise resource planning), which has been its traditional strong point.
"Today there are a lot of players that make it possible for customers to run a software on cloud. So we work with those providers to certify their environment that can successfully run a SAP solution," said Dale. He said that today if an SMB wants to run an entire ERP solution on the cloud SAP has would offer the same.