thomas.wieberneit@aheadcrm.co.nz
Is SAP on a steamroll?

Is SAP on a steamroll?

The news On Monday, July 22, 2024, SAP presented its numbers for Q2 and H1, 2024. The highlights include: Cloud backlog up by 28% (27% in Q1) Total revenue up 10% (8% in Q1) Cloud and software revenue up 10% (9% in Q1) Cloud revenue up 25% (24% in Q1) Cloud ERP suite revenue up 33% (31% in Q1) This in combination with an increasing margin. The total revenue growth and high profitability needs to be seen in the context of the company’s still ongoing cloud transformation, with continuously decreasing software license and support revenues. Obviously, the financial community liked these numbers, as can be seen by the jump of SAP’s share price by more than 5 per cent from about $200 to $212 after releasing the earnings numbers. According to CEO Christian Klein, a lot of this success can be attributed to SAP’s AI strategy. Klein stated that almost a fifth of all closed deals included premium AI use cases. A grain of salt in the soup is the employee engagement index that is part of the non-financial outlook. SAP reduced the 2024 target from 76 – 80 per cent in Q1 to 70 – 74 per cent. The bigger picture To put this in perspective with cloud juggernaut Salesforce, the total revenue growth is comparable with the Salesforce Q1, 2025 statement. Salesforce’s revenue grew by 11 per cent and the current performance obligation by 10 per cent. Also, in contrast to Salesforce, SAP reiterated and strengthened its outlook instead of painting a more muted picture. The main competition in the next months and years will happen in...
Zoho – ready for enterprise prime time? What do customers say?

Zoho – ready for enterprise prime time? What do customers say?

Zoho is well-known as a technology vendor for the SMB market. The company has products that support the whole range from single proprietors to larger companies. This range in itself is remarkable. For some time now, the company is diligently working on moving upmarket and to also support enterprises. This is not in the least, as with a growing customer base, more and more existing customers grow into the enterprise segment. The transition from SMB to enterprise is far from trivial. Sales models change, messaging, consulting approaches, support infrastructure, even the demand for the size and structure of the ecosystem are different in the enterprise sector. So, how does Zoho fare? To find out, I had a conversation with Parl Johnson, “Chief Nerd” at Nuvia Smiles. You can find our complete conversation on YouTube. Interview with Parl Johnson, Chief Nerd at Nuvia Smiles Nuvia Smiles is a dental implant company and currently has 1,500 Zoho seats. The company has more than 30 locations across the United States. Its specialty is to provide a 24-hour turnaround time to get permanent teeth into the patient’s mouth. This way, they do not have to wait long periods of time to get dental replacements. This requires a very rigorous process and having a lab at every location. Decision making is highly decentralized to support this fast process. The challenge with this degree of decentralization is that there are many disconnected applications and with that also very decentralized data. Nuvia Smiles identified 80 different applications with a scope of consolidation across the 30 locations. While this initially facilitates fast growth, it can become a...
Value, not greed! How a business software vendor translates SMB success into the enterprise

Value, not greed! How a business software vendor translates SMB success into the enterprise

Zoho is well known as a vendor for business applications geared towards SMBs. As many other companies do, Zoho wants to support the upper mid-market and enterprises, too. After all, successful SMBs may grow into become enterprises and that might attract other enterprises. So, there are a good number of good reasons to also support upper mid-market and large businesses. The company has actually followed this path for about five years and has set up an enterprise business solutions team to deliver solutions for enterprises. Still, it is a better kept secret that Zoho already has considerable momentum in the upper mid-market and enterprise segments. Zoho achieved a 65 percent year-over-year growth. The enterprise segment now represents about one third of the business.  During its signature event Zoholics in Austin, the company on May 4, 2023, changed this and revealed its enterprise strategy. This strategy ultimately rotates around four pillars: Go-to-market, platform, new applications and enhancements, plus security and privacy. Zoho also backed up its continuing success story by inviting some customers to present their journey with Zoho as a panel and talking individually to analysts and media.  Marshall Lager and I had the opportunity to speak with Zoho’s head of CX marketing strategy, Prashanth V K. We had a lot of questions and opened up with a barrage about what the customer profile for the Zoho enterprise business is. The interview can be watched here. Zoho’s head of CX marketing strategy explains how Zoho is successful in the enterprise market Starting with the definition of mid-market: Zoho defines mid-market companies as companies ranging from one hundred to one thousand employees; and Zoho...
Zoho – How a technology company reimagines business software

Zoho – How a technology company reimagines business software

The News  On May 4, 2023, Zoho held its Zoholics conference in Austin, TX which included a media and analyst track in addition to the customer track. After all, Zoholics is a customer event. During this event, about 80 participants of the former track had ample opportunity to learn about and discuss the latest news at Zoho. We also had the opportunity to listen to – and question – a panel of customers who gave candid answers about their journey with Zoho and challenges they faced. Of course there was plenty of room for mingling and networking with Zoho executives and, of course, with analysts and customers. In addition to the breaks between the tracks, there was a pre-evening reception, a dinner on the event day and a casual brunch at the Zoho farm just outside of Austin.  As usual for Zoho, the sessions were less about feeding us with PowerPoint (or Zoho Show, to be precise. Why would Zoho not use a Zoho product?) but about giving good information and a genuine interest in getting feedback. This was evident not only during the sessions but also by the customer panel and an open Q and A with representatives of the Zoho leadership team. Of course, the customers were reference customers. Still, they openly admitted challenges. In one case e.g., it became evident that Zoho’s HR software has scope for improvement, another example was users preferring MS Teams to Zoho Cliq.  The sessions covered four grand themes: The release of Ulaa, a privacy orientated browser Zoho’s upmarket momentum A kick-start set of solutions to help solopreneurs and very small businesses to...
The customer success movement

The customer success movement

Customer success has become an interesting topic for software vendors and systems integrators, alike. I am thinking about this topic for a while now and now bring my thoughts to virtual paper after Jon Reed pinged me about it and after reading Josh Greenbaum’s very readable post about “customer successing”. By the way, Jon called software vendors to attention and to deliver proof points in a great article, too. So, call me a copycat 😉. The customer success movement In the past years enterprise software vendors and consultancies alike, have increasingly established customer success teams as part of their organizations. One can almost call it a movement. And it is a laudable endeavor to work on ensuring the customers’ success. However, when looking closer at the reasons for their establishment and their charters, it becomes quite obvious that many of these customer success teams are set up as a reaction to failing implementation projects or, even worse, as a vehicle for selling further services to customer companies.  Consequently, metrics that are used for measuring the success of the customer success teams are based around project metrics. Have implementation projects been on time, in budget, and delivered quality results, means they have been successful. Don’t get me wrong: there is nothing wrong with attempting to improve project success and to generate additional sales. There are still woefully many projects that do not get implemented within the allotted budget and time, and in sufficient quality. Additionally, one can argue that only happy customers do follow-up purchases; and customers are happy because the earlier projects succeeded.  I get it. Seriously. I am a consultant, too. Many vendors, often...