Debunking the Myth: Contax Trailblazing the Market for HANA and SME
There’s been quite a stir around CONTAX’s recent success with S/4 HANA. This SAP partner is helping debunk the myth that HANA is only for large companies and their success is proof that HANA is no longer just a large enterprise play.
CONTAX had been successful at positioning S/4 HANA to small customers. Their most recent success was with net new customer Hansaloy who already had an existing ERP infrastructure. Wanting to leverage their investment in existing infrastructure, the customer chose an on premise installation. They did a cost comparison on Cloud versus on premise and determined that on premise was cheaper for them because they already had the infrastructure in place.
“The smaller customers buying process is often different from larger customers”, says North American VAR CONTAX’s CEO and President Michael Pearson. His teams have done quite a few HANA installations and they have developed their own sizing specifications for HANA systems. They provided this last customer with the specifications and the customer is working with their hardware reseller to use what they currently have and, if necessary, make any additions or changes where necessary.
CONTAX triggered the conversation to implement SAP by positioning the benefits of going with a leading-edge solution from the world’s leading ERP company. The customer has chosen to go incrementally, starting with SAP S/4HANA for Business All-in-One then looking to add BI down the road. The customer is also open to Cloud down, but probably only when their infrastructure needs replacing, the initial implementation will be full on premise.
CONTAX has had great success with the lower end of the GB segment, that is, customers with revenues of less than $100M and even many less than $50M. Companies in this space often have the same requirements as larger companies but don’t have the budget for a large-scale project. CONTAX fills this need by offering hardware/hosting, software and services for as low as $250,000. They offer customers a great deal of flexibility with fixed-pricing on projects, financing, and subscription-based pricing plans.
All Net-New CONTAX customers going forward are on the HANA platform, and they have several customers already who have purchased and are installing HANA runtime database and S/4HANA applications. CONTAX is one of the leading adopters of S/4HANA edition for Business All-in-One. They also sell the entire suite of SAP products including Business Intelligence, SuccessFactors, Cloud 4 Customer, and Mobility.
CONTAX recently acquired Aptelis, Inc., an SAP service partner based in Irvine, CA. “The acquisition of Aptelis give us a significant presence in the West region, an area in which we have not previously covered”, says Pearson. “Now we can pursue Net New wins in the US West with local sales, pre-sales, and a local delivery office. Leveraging our success in the Midwest to the lower GB space in the West is bound to result in new customers and increased sales for SAP software and subscriptions.”