Even if SAP has gone west to conquer the large and lucrative U.S. market for business software, the German company hasn’t lost sight of the potential lurking in its backyard to the east.Eastern Europe is bursting with small and medium-size businesses (SMBs), many of which are still using older, “homegrown” ERP systems, according to Ernie Gunst, SAP president for Europe, the Middle East and Africa (EMEA). “We see huge growth opportunities in the region,” he told reporters Tuesday at the company’s Sapphire customer event in Paris.The enlargement of the European Union and a desire to expand internationally create a need for midsize companies to deploy IT as a competitive weapon, according to Gunst. “SMBs in Eastern Europe want to grow beyond their local markets, but they need help on the IT side because many of the vendors that have supplied them with software probably aren’t going to survive the consolidation currently under way in the region,” he said. “These midmarket businesses seek longevity, and that’s a big plus for us.” The SMB market in Eastern Europe, like Western Europe, is highly fragmented, requiring SAP to work closely with local channel partners through its PartnerEdge program, Gunst said. Price plays a big role in convincing SMBs in the region to sign license contracts, according to Gunst. “We need to be competitive, and we are,” he said. “That said, software matters to us, and we’re not about to give it away.”To help SMBs buy technology, SAP cooperates with groups providing financing services, including Siemens. “Together with Siemens Finance, we provide financing for software, hardware and applications,” he said. SAP doesn’t provide any direct financing services, however. Another crucial factor is convincing customers that buying SAP products will generate value. “Businesses in Eastern Europe want to see a return on their investment,” Gunst said. “They want to know that an investment in SAP will help solve their problems.”A big benefit for SAP, in this context, is the company’s expertise in numerous industries, according to Gunst. “We have a platform to incorporate ideas and combine knowledge and expertise,” he said.Midsize companies in Eastern Europe are beginning to feel globalization pressure, according to Gunst. “They know that if they don’t use IT to gain a competitive edge, they’re out of the game.”-John Blau, IDG News ServiceFor related news coverage, read SAP CEO Wants Co. to Remain Independent, SAP Reaches Out to Chinese, Brazilian Users, Whirlpool Whirls into Web Services and Q&A: SAP Looks to Replicate U.S. Success.Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content News ServiceNow continues workflow platform expansion with Utah release The company also doubles down on its customer success automation efforts, but bucks the trend by omitting GPT. By Peter Sayer Mar 22, 2023 7 mins CIO Build Automation Enterprise Architecture BrandPost Don’t buy into the hype of network observability to realize digital transformation success Just collect the right data and follow it to where it leads you. By Jeremy Rossbach, Chief Technical Evangelist, Broadcom Mar 22, 2023 3 mins Networking Feature How culture and strategic partnerships help fuel transformation Marc Hale, CTO for AIA New Zealand, recently spoke with Cathy O’Sullivan, editor for CIO New Zealand, about navigating the complexities of digital transformation, and focusing on culture to enable healthier outcomes for customers. By CIO staff Mar 22, 2023 7 mins CTO Digital Transformation Change Management Feature 10 things CIOs wish they knew from the start Go slower. Network. Tell stories. Get training. Be kind. CIOs have plenty of advice they’d give to their younger selves if they could. By Martin Veitch Mar 22, 2023 7 mins CIO Careers IT Management Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe