What are t...

Question

What are the SMB (Digital and/or Mid Market) Verticals like? Do you find Product Market Fit/Pricing is appropriate? Is the SKU bag different to the Enterprise Reps?

Current Employee · Accepted Answer

We have about 24 industries that we focus on. Most of the product market fit is bang on, and pricing is also a strong fit when properly vetted and demonstrated through value engineering business cases. An example would be Life Sciences or CPG Food & Bev industries. There are a few industries where (imho) we are still weak, for example PubSec / HigherEd - we tend to see Workday or others winning there more often. In the EC&O (Engineering, Construction and Operations) vertical, we still do not have a very strong fit for SMB and midmarket players here; we have to rely on external partner solutions that have been shoehorned onto S/4HANA. In some sub-verticals such as real estate operations companies, we see other companies like Yardi with very strong footholds and product-market fit.

For certain solutions, regardless of the industry or market size, we still do not have strong share of wallet - such as CRM / CX / EX; although we have a brand new Sales & Service Cloud offering out which is actually intended to take on Salesforce, the latter is still by far the 800-lb gorilla in the room, and many customers would rather buy SFDC and then pair it with an SAP ERP, because our original CRM was just so clunky and bloated.

SKUs across the vast majority of product bags are the same for enterprise or Midmarket, and since they're priced based on usage metrics, they will be appropriately priced for any organization at either end of that spectrum. Enterprise and Midmarket reps all use the same pricing book internally.

In some unique cases however (such as legacy TPM) the pricing and minimums were skewed towards Enterprise customers so we have been redeveloping new cloud-first composable solutions for Midmarket to allow for more pricing flexibility.

At the lower end of the market, in the SMB space (below $100M annual revenue) the ERP solutions are still either B1 or ByD. These can no longer be sold by SAP reps, and instead are taken to market only by partner reps.

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Anonymous Q&A

What are the SMB (Digital and/or Mid Market) Verticals like? Do you find Product Market Fit/Pricing is appropriate? Is the SKU bag different to the Enterprise Reps?

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