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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags crmSAPmid-marketSME

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?