SAP Launches SMB Solutions Group

During its Q2 earnings call on Thursday, SAP (SAP) announced plans for an SMB Solutions Group, the company’s first division focused entirely on the needs of its small- and medium-business (SMB) customers. The division ostensibly will help the German software maker meet the increasing technology demands of smaller companies and further simplify business opportunities as SAP leans full-tilt into maximizing its interactions and profitability with SMBs.

Newly appointed executive Dean Mansfield has been tapped to lead the new SMB Solutions Group, responsible for the division’s end-to-end operations, according to the company. In his role, Mansfield will “execute on a board strategy to redefine SAP’s SMB business solutions market by creating the next generation of simplified, integrated business applications powered by SAP Hana,” delivered through the cloud to help solve SMB business challenges.

“SMBs are playing an increasingly important role in the global economy and at the same time are increasingly interested in leveraging advanced technology,” said Ray Boggs, vice president of SMB Research at IDC, in a statement. “We’re predicting record worldwide SMB IT spending that will top $680 billion by 2018, with exceptional gains in key regions and across key technologies as SMBs are being transformed through the use of mobile devices and cloud computing. The opportunity for firms to sharpen their products, refine distribution strategy and appeal to new customers has never been greater.”

In addition to his responsibilities with the SMB Solutions Group, Mansfield is being tasked with leading the current SAP Business One application portfolio, which operates through the Global Partner Operations organization. Prior to his appointment to SAP in October, Mansfield held various leadership positions, including a six-year stint as a manager of Global Sales and Operations at NetSuite.

While the SMB Solutions Group is big news, it’s not very surprising: SAP has been dropping hints about its intentions in the SMB market for some time now. In April, the company announced it would be working with its channel partners to expand its small- and medium-sized enterprise (SME) customer base through its mantra of “simplifying everything.” SAP Channel Chief Kevin Gilroy told The VAR Guy that the company was looking to make the entire experience more enjoyable, going so far as to establish a Simplification Task Force within his division to work on smoothing all aspects of doing business.

SAP’s bid to capture more of the SMB market could be seen as a step in its larger plan to dominate in the cloud services market, as the company continues to shift away from on-premise solutions and gravitate toward the burgeoning cloud market. Following in the footsteps of its Q1 2014 results, SAP again reported strong gains in its overall cloud revenue, with the company’s predicted annual cloud revenue run rate approaching 1.2 billion euros, or $1.6 billion.

In May, the company extended its reach further into the cloud market by announcing its SAP Integration with VMware vSphere 5.5, while also announcing several changes to its management structure, including the appointment of new cloud partner chief Rodolpho Cardenuto.