Microsoft’s push into the SME space is for real, according to a senior company executive who has revealed that there is $10 billion allocated over five years to take a slice of that market.
Orlando Ayala, Microsoft’s SMB sales strategy chief, said Microsoft was taking a long-term view of the sector, but expected its investments to turn profitable in 2005. Microsoft’s SME targetted CRM offering comes to Europe early next year.
The company wants to sell up to $10 billion in software to smaller businesses by the end of the decade and is investing two billion dollars in research and development for SMB software this year. “It should remain in this order of magnitude for the next five years,” he argued. bringing it to a total of $10 billion by 2008.
He also reiterated that Microsoft does not see itself competing against SAP or Oracle. “We’re not aiming to oust SAP or Oracle from their core ERP business,” he said. ““In the next five years, we will concentrate on the market for companies with 2,000 to 5,000 employees, or maybe up to 8,000.”