SAP offers 'free' CRM for ERP buyers

Annual maintenance costs still apply

SAP said this week that midsize companies that purchase the Business All-in-One suite or SAP ERP will also receive its CRM (customer relationship management) application.

The offer comes with a catch, however. Customers will get the CRM licenses at no charge, but must pay annual maintenance costs on them, a spokesman said.

In addition, companies must buy at least 15 "application professional" and 15 "application limited professional" licenses for the ERP (enterprise resource planning) applications. The offer is available until Dec. 18.

Business All-in-One is one of three lower-end ERP product lines sold by SAP beyond its flagship ERP application.

It also markets Business One, which is for small companies, and is mounting an incremental rollout of Business ByDesign, an on-demand suite with a wide range of functional modules.

SAP's CRM discount offer is no doubt an effort to shore up slumping license sales amid the dismal economy.

But it could also be an indication that customers aren't pleased with Business All-in-One's native CRM functionality, which SAP added in May 2008, said 451 Group analyst China Martens.

Overall, though, SAP's announcement was just the latest move this week by a major vendor to court midmarket customers.

Microsoft announced it had purchased a range of industry-centric technologies from partners to help it boost the vertical capabilities of its Dynamics AX ERP suite, and Oracle made a fistful of product and strategy announcements aimed at midmarket customers, including a new portal, midsize.oracle.com.

These concurrent events are no accident, given the vendors' fierce competition for these customers, not only from each other but SaaS (software as a service) pureplays such as NetSuite and Salesforce.com.

Vendors realize "that growth will have to come from the midmarket. It's a greenfield of companies with legacy or no ERP systems. The midmarket is the future," said Altimeter Group analyst Ray Wang.

While vendors have certainly made some headway into the segment -- Oracle's announcement claimed it had grown its midmarket customer base by 7,000 in the past three years -- many midsized companies are slow to adopt new software.

An Aberdeen Research study issued in August found that only 28 percent of 313 respondents were on the latest release of their ERP system.

Thirty-one percent were one release behind, 13 percent were two behind, and 13 percent were still three versions back or more, according to the study.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mid-marketSAPcrmSME

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?