Accenture launches Accenture Edge, eye mid-market enterprises

Accenture said it is expanding its efforts to target mid-market companies with sales between $300 million and $3 billion via the launch of Accenture Edge.

The consulting giant said on its latest earnings call that it would ramp plans to expand via mid-market enterprises. Accenture Edge is focused on helping mid-market companies leverage AI and technology as well as Accenture's platforms and ecosystems. Accenture said it will develop tailored offerings for mid-market companies.

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For Accenture, the mid-market could expand its total addressable market. Accenture has made a bevy of acquisitions and AI has improved its economics to deliver services. Accenture Edge will launch in selected markets and then expand.

Accenture's argument is that mid-market companies face the same challenges as large enterprises, but have less budget.

Julie Sweet, Accenture CEO, said "Accenture Edge brings together Accenture’s significant investments in platforms, accelerators and assets—right-sized and fit for purpose for this market." Sweet added that Accenture Edge will integrate with Avanade, a joint venture with Microsoft. Avanade will continue to be focused on Microsoft platform services for mid-market customers with Accenture Edge targeting the broader market.

Accenture Edge partners include Microsoft, Oracle, SAP, AWS, Google, Salesforce and Workday. Most of those partners also have extensive efforts to focus on the mid-market.

My take:

• Accenture Edge has all the tools to succeed in the mid-market and could do well if its services are priced right and deliver impact and ROI.
• The issue is that the mid-market is different and has been courted (and abandoned) by big enterprise technology companies before.
• Mid-market enterprises usually become more popular in downturns and then get ditched when the big budgets come back.
• These mid-market companies also aren't as enticed by buzzwords and want returns and problems solved.
• Mid-market firms also tend to be loyal to vendors that give them ongoing attention and partners that do the same.
• The perception that Accenture only caters to large enterprises will have to be overcome. Winning over mid-market companies may take time.
• AI and more efficient delivery, however, may enable the big consulting guns to move downstream.