SAP is reorganising its UK channel structure to aggressively target the SME sector.

SAP, which entered the SME area with its Business One and mySAP products in 2003, said it is looking to strengthen its partner relationships with a more defined structure and increased investment in the channel.

To support its new structure, the vendor has also appointed Ciaran Rafferty as general manager of its SME business. He said details of the restructure are still being finalised, but he claimed one focus is to attack specific vertical SME markets in the UK.

Rafferty said resellers will be given access to these new markets in the following months. "We will open up more vertical markets at set points, but only when the time is right," he said.

"In 2005, partnering and our SME business is one of the top three strategic global decisions for the UK. We are investing in the channel, and this will be a partner-led strategy."

Rafferty added that SAP's UK SME market is not yet mature enough for a two-tier distribution strategy and claimed its resellers will be able to make higher-value sales through a single tier.

Duncan Wyeth, managing director of SBO Consultancy, said SAP is now starting to treat its channel with respect.

"It's beginning to manage its channel proactively, rather than treating it like a bunch of naughty schoolboys," he said. "SAP is waking up to channel management and moving forward."

Anthony Foley, director at Digital Quill Systems, a reseller of business management systems based on SAP architecture, agreed. He said Digital Quill became purely SAP-reliant after cutting its ties with Sage.

"Sage can see its partners as a cash cow. SAP is very receptive to its partners and this will make things run smoothly," Foley said.

"SAP will always refer direct sales enquiries back to the channel, whereas we felt this sometimes didn't happen with Sage."

james_sherwood@vnu.co.uk