SAP woos back core customers

Enterprise resource planning software company SAP is gaining ground in its sales war with upstart e-business software companies.

Enterprise resource planning software company SAP is gaining ground in its sales war with upstart e-business software companies.

Arlene Martin

Europe's largest enterprise suite vendor reported a 31% increase in sales last year at Euro2.164bn (£1.36bn), while sales of MySAP.com, the company's Internet-enabled software, accounted for more than 63% of licence revenue in the last three months of 2000.

Sales of SAP software had fallen off during the previous 18 months, amid signs that its traditional customers were being wooed away by specialist rivals.

Analysts put the recent turnaround in the company's fortunes down to a successful marketing strategy designed to convince its core customers to stay.

Paul Bray, head of SAP practice at KPMG Consulting said the benefits of MySAP.com were now much more widely acknowledged. "A reorganisation of the sales and development teams has been effective," he added.

Bloor Research analyst, Tony Lock, agreed, "SAP have worked out their sales messages and it has served the company well."

But he warned that the best-of-breed specialist vendors would fight back.

"Over the next few years, best-of-breed solutions will incorporate more functionality and will end up competing in the same space as MySAP.com," he said.

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