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Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions
November 17 at 11:00 am US/Eastern (GMT-5)
Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.
Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group
The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.
Honor your best senior team members - Apply for the CIO Ones to Watch Award
Get well-earned public recognition for your top up-and-coming team members, your IT organization and your enterprise. Award winners will be announced, publicized and feted in May 2010, great timing to help attract new IT recruits to your company.
Learn more about the CIO Executive Council »May 22, 2006 — CIO —
For SAP, the U.S. market remains the main driver of its growth, with the company looking to duplicate that success elsewhere in the world, notably in Latin America.
Last month, the business-applications company reported its 14th consecutive quarter of double-digit revenue growth in the United States. The architect of that continued growth is Bill McDermott, who joined SAP in October 2002 from Siebel Systems, now part of Oracle.
Formerly in charge of SAP’s U.S. and Canadian operations, McDermott became president and chief executive officer of SAP Americas in January when SAP merged its North American and Latin American business operations into a single organization.
IDG News Service sat down with McDermott last week at SAP’s Sapphire U.S. user conference in Orlando to talk through the company’s global strategy. An edited transcript of that conversation follows.
IDGNS: To what do you attribute your success so far in the U.S. market?
McDermott: A single-minded obsession on customers. In four years, we’ve more than doubled the size of the company. We’ve worked hard on our coverage model [targeting] small, medium and large customers in the West, Central, Northeast, Southeast and Southwest geographies.
How do you define small, medium and large customers, and what’s your current customer split look like?
Small is zero to US$250,000 in revenue, medium $250,000 to $1 billion, large is above $1 billion. Small plus medium is about one-third of our business versus large at two-thirds. That’s the case for the U.S. and roughly also for the world. It’s shifting over time. We’ll have a 58 percent large, 42 percent small plus medium [customer] mix in two years.
Is new business mostly coming from the small to midsize business space?
If you look at the white space, there are still quite a few large customers who might have ERP but not SCM [supply chain management], CRM or a master data management platform. There’s a lot of legacy ERP looking to move to a modern platform.
At the high end, it’s us versus a database company which has spent $19.5 billion on failed companies and isn’t strong enough to stand on its own two feet. People are going to go to the only viable alternative, SAP. I expect to see lots of switching at the high end.
In the midmarket, a lot of customers have failed with best-of-breed applications. We have a clear intention to serve small and midsize customers. We’ve built and positioned our brand already, but we’ll emphasize it more. We have customer references in 29 industries in the small and midsize space; that’s the most powerful way to change minds.