Business Cloud News
NEC and SAP are partnering to deliver the latter's SME-focused ERP solution on the former's hardware

NEC and SAP are partnering to deliver the latter’s SME-focused ERP solution on the former’s hardware

Setting their sights on South East Asian SMEs, NEC and SAP have entered into a partnership this week that will see NEC provide small and medium-size businesses in the region with SAP’s Business ByDesign ERP solution. The companies want to address what they see as the misplaced belief that SAP’s cloud solutions are only suitable for larger enterprises.

The partnership will see NEC roll out SAP’s Business ByDesign, its enterprise resource planning product targeted primarily at SMEs, initially in parts of South East Asia. SAP and NEC said the roll out should commence by Q2.

NEC said the partnership will also see the equipment manufacturer work closely with the German software giant to add unique localisation capabilities to the cloud-based ERP suite.

“NEC has been providing SAP-based packaged solutions to a wide range of customers that are expanding their business presence globally,” said Yutaka Noguchi, general manager, enterprise solutions development division, NEC Corporation. “However, we also expect strong demand for solutions that are easy to implement for small to midsize businesses when they are seeking to expand into emerging markets.”

“To tap into the growing business opportunities, NEC will work closely with SAP to integrate its cloud business expertise and assets with SAP Business ByDesign,” he added.

SAP AG’s head of OEM sales, and chief operating officer, global ecosystem and channels Steven Birdsall said the collaboration with NEC demonstrates their commitment to the Business ByDesign Solution, which has been called into question recently.

Multiple reports in October last year suggested SAP was planning to close its Business ByDesign software unit because the product was failing to gain traction among the small and medium-sized businesses the solution was intended for, which the German software maker later denied. It told Computing Magazine, however, that it was planning to scale down the unit.

Because ERP solutions tend to have so many integration points roll outs more often than not tend to be plagued by over-spend, complexity and confusion according to research published by systems integrator K3 FDS.

Cloud-based ERP solutions can help relieve some of that complexity, an appealing pitch for companies that don’t have the resources to manage traditional roll outs (like small businesses). But demand has also facilitated the rise of players targeting that segment directly like Netsuite or Microsoft, which are increasingly challenging SAP’s incumbency in the ERP space.