SAP tries harder with SMEs

Business software maker SAP expanded an initiative to target small and medium-size enterprises (SMEs) yesterday with five new software packages and plans for at least 20 more by the end of the year.

The new products are part of SAP's All-in-One set of business applications, which the Walldorf, Germany, company introduced last spring. The software is based on SAP's popular line of high-end accounting, sales, human resources and manufacturing software used by many of the world's largest companies. SAP has simplified the software for its All-in-One programme in an effort to target companies that make less than $1bn in revenues annually, said Nils Herzberg, a senior vice president at SAP.

The five newest All-in-One products are each designed for a different industry, including cosmetics, food and semiconductors. The software is available through a network of SAP resellers, including Hewlett-Packard.

While SAP has many medium-size customers in Germany, it has yet to make major inroads with such companies in North America despite previous attempts over the years to expand into the market. The stakes are higher this time around because Microsoft has entered the fray with the acquisitions of Great Plains and Navision, as well as the introduction this year of customer relationship management software for small businesses.

SAP will from this summer offer software for companies with as few as 10 employees with a product called Business One.

Alorie Gilbert writes for CNET News.com.