BusinessWeek has an artile on SAP's small and medium sized biz segment business, some excerpts from the article,

SAP has been working on the small-business market for years. But now the company has stepped up the effort. With revenues of $2.8 billion in the second quarter, SAP is aiming to boost sales of products to small and mid-size businesses to as much as 45% of the total by 2010, from about 30% now. With the big-company market increasingly saturated, the growth has to come from smaller companies. "It is already one of the cornerstones of our growth strategy," says Leo Apotheker, SAP executive board member responsible for sales and marketing.

Simplifying the products is key. In June, SAP announced it had reached 10,000 customers for its entry-level Business One software, which was launched in 2003. J. Forrest Koch, chief executive officer of IT services firm Omega Group in Portland, Ore., boasts that he can install Business One for a single use in 30 hours for $7,500. For mid-size companies, SAP offers All-in-One, a range of simplified products based on its flagship mySAP software.

Some Key points from the Article:
- Entry-level Business One software can be had for well under $10,000
- Market share in this segment according to some estimates is worth $500 billion this year.
- SAP says it already has 19,000 customers with sales of less than $1 billion
- Market Share - estimated 56 million companies that could conceivably become customers
- With revenues of $2.8 billion in the second quarter, SAP is aiming to boost sales of products to small and mid-size businesses to as much as 45% of the total by 2010, from about 30% now.
- One Services company says it can install Business One for a single use in 30 hours for $7,500.
- For mid-size companies, SAP offers All-in-One, a range of simplified products based on its flagship mySAP software.
- "It's going to really be a war between the partner networks," says Ray Wang, an analyst at Forrester Research who is based in Foster City, Calif.

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Prashanth Rai