NEC Teams With SAP to Help SMEs Benefit from Cloud-Based ERP Solutions in Key Markets Globally

NEC to Roll Out New Solution Package Built on SAP® Business ByDesign®, Empowering Small and Midsize Enterprises Initially Across South East Asia to Run Their Entire Businesses More Efficiently

KUALA LUMPUR, Malaysia  — Jan. 15, 2014 — NEC and SAP AG (NYSE: SAP) today announced that NEC has entered into an original equipment manufacturer (OEM) agreement with SAP to integrate the SAP® Business ByDesign® solution with its global cloud-based enterprise resource planning (ERP) services. The new offering, NEC Global Localization Package for SAP Business ByDesign, will leverage the ERP cloud solution from SAP and the end-to-end cloud deployment capabilities from NEC and will enable subsidiaries of large corporations and small and midsize enterprises (SMEs) to improve efficiency and gain insights into real-time enterprise-wide operations.

This OEM agreement is the first of its kind worldwide regarding SAP Business ByDesign. At the initial stage, NEC plans to roll out the new offering in key South East Asia markets. NEC also intends to develop valued-added localization functionalities, which will be integrated with SAP Business ByDesign. NEC also targets to provide its new cloud services in the several countries on three different continents where the solution is already available.

“NEC has been providing SAP-based packaged solutions to a wide range of customers that are expanding their business presence globally,” said Yutaka Noguchi, general manager, Enterprise Solutions Development Division, NEC Corporation. “However, we also expect strong demand for solutions that are easy to implement for small to midsize businesses when they are seeking to expand into emerging markets. To tap on the growing business opportunities, NEC will work closely with SAP to integrate its cloud business expertise and assets with SAP Business ByDesign.”

As a part of the SAP solution portfolio specifically designed to provide SMEs with the flexibility and choice needed to grow and thrive, SAP Business ByDesign has been made available on the SAP HANA® platform, delivering on the company’s ongoing commitment to provide a single and unified platform for businesses to run more efficiently and effectively in the cloud. For more information, see: “SAP Innovates With New Release of SAP Business ByDesign Solution.”

“The new global collaboration with NEC not only demonstrates our co-innovation efforts to help enterprises realize the benefits of cloud-based ERP solutions, but reaffirms our commitment to supporting SAP Business ByDesign through enabling our partners to integrate more specialized capabilities,” said Steven Birdsall, head of OEM Sales, and chief operating officer, Global Ecosystem and Channels, SAP AG. “The market transition to the cloud as well as our success with in-memory technology is creating new opportunities for the SAP partner ecosystem. We expect the new SAP HANA-based extensibility platform integrating SAP Business ByDesign and other SAP cloud solutions will help companies run their businesses in the cloud with enhanced agility and effectiveness.”

NEC plans to invest in the development of value-added localization functionalities, which would be integrated with SAP Business ByDesign through the OEM agreement, with an initial focus on addressing country-specific requirements pertinent to local tax law, regulatory compliance and business practices. NEC also plans to promote sales of NEC Global Localization Package for SAP Business ByDesign to the head offices of Japanese companies that have already deployed the SAP® ERP application on premise or have plans to implement cloud-based ERP solutions in their smaller and overseas subsidiaries. Additionally, NEC plans to offer customized solution packages to fulfill the requirements of other types of organizations such as government institutions and public service providers.

The NEC Global Localization Package for SAP Business ByDesign is scheduled to be available globally with initial rollout beginning in South East Asia in the second quarter of 2014. NEC has the goal of achieving 300 installations in three years time.

Looking ahead, NEC plans to enhance the integrated cloud service offering with various localization functionalities and develop best practices for cloud software implementations. NEC also targets to offer new services to help companies build their enterprise-wide business management platform and supply chain management (SCM) system, and manage their global operations effectively and efficiently.

NEC will showcase NEC Global Localization Package for SAP Business ByDesign at NEC Innovative Solution Fair 2014 on January 16, 2014, at Raffles City Convention Centre, Stamford Ballroom, Singapore.