Business software giant SAP is giving partners around the world free access to its SAP Cloud Platform for 12 months to develop and test solutions, demonstrate product value
SAP is trying to make it easier for new and future partners to develop cloud-based solutions on its SAP Cloud Platform by providing up to one year of complimentary access for the development and extension of applications and services built on SAP cloud-based offerings.
The Lowdown: SAP is trying to stimulate partner development of SAP-based solutions to expand its presence in the burgeoning and competitive “as a service” market segment. SAP recognizes that building greater market share requires partners with complementary services to build on and around its core products.
The Details: The new incentive in
The Impact: SAP’s offer of free service defrays some of the development cost partners incur in designing, building, and testing cloud-based products. The free access has real value to partners as it saves time too. The free access to SAP Cloud Platform will accelerate service development for many partners. Also, partners gain access to more than 100 cloud-based solutions they can use to augment and extend the functionality and value of their service offerings.
Background: Like many legacy business software companies, SAP is trying to leap higher into the cloud market and build recurring revenue through partners. While both partners and customers acknowledge that the services model will dominate software delivery, only a fraction of partners have moved into the development of their own services built on the offerings of traditional platform providers like SAP. The hope is that free access to SAP Cloud Platform will remove some of the cost and risk associated with development.
Channelnomics Point of View: Free access to development and demonstration resources is a tremendous benefit to partners. However, the true value comes from SAP’s resources that help partners develop applications and services through reference architectures and economic models. According to research from The 2112 Group, risk associated with expense, time to market, and limited sales capacity is what often holds back partners from making significant investments in cloud services. Additionally, 2112 research finds these same factors are what keep the majority of partners sequestered to selling and supporting commoditized cloud offerings.