Newsflash

Over the past several years, the world’s largest software companies have zeroed in on mid-market companies as a new “sweet spot,” a $140 billion market ripe for sales. But is selling business applications into mid-market companies the same process as selling enterprise software into Fortune 500 companies? What is it that defines these companies and what motivates them to buy business applications?

First, we need to describe this lucrative software market. For the purpose of this article, we will define mid-market companies as standalone companies or departments of large corporations with 100 to 1,000 employees. These companies face business complexities similar to that of a large company, and have an operational and transaction orientation.

Unlike large companies, which can rely on in-house IT departments or outside consultants to help with software purchases, mid-sized companies are characterized by a lack of in-house IT staff or infrastructure. For them, application complexity can be a big deterrent to buying. They do not have time for a costly installation process and complex training. Instead, mid-market companies are looking for software applications that are simple to install and that work straight “out of the box.”

Dumbing down a generic financial, manufacturing or human resources package for an organization with fewer users might seem like it would do the trick. But nothing could be further from the truth!

The business people who use mid-market applications value applications with domain-specific support for their industry. They want rich functionality that provides a competitive edge in their marketplaces. In short, they are looking for software applications that fit their business needs “like a glove.”

 
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