Makes it easier for channel players to leverage SAP portfolio – and cloud – for digital transformation
A study by IDC shows that more than half of SAP partners are in the relatively early stages of digital transformation. To facilitate their journey, SAP is expanding its PartnerEdge program and offering free access to select test and demo systems.
The Lowdown: According to IDC’s study of SAP’s partner ecosystem, there’s a huge untapped potential in digital transformation. For the 16% of partners with a fully integrated digital strategy, revenue growth was substantial in 2018, at an average of 43%. On the flip side, more than half of SAP’s partners – 55%, to be exact – remain in the early stages of developing a digital strategy, and for them, revenue growth paled in comparison last year, at a mere 22%. That lag, however, also spells opportunity.
The Details: The IDC study found that the biggest opportunity for SAP partners is in the cloud.
• Among the partners polled, 46% said their fastest-growing revenue stream comes from the resale of SAP cloud software.
• Almost 60% of net-new partner opportunities will be built around SAP cloud offerings.
• Partners that develop on SAP’s cloud will grow at a compound annual rate of 23.4% — 2.3 times faster than other partners.
To guide partners on their DX and cloud journey, SAP has tweaked its PartnerEdge – Build channel program by adding an option that allows partners to integrate the offerings they develop on their own with SAP solutions. After applying for the “integrate” option and passing SAP’s readiness check, partners gain access to a range of SAP go-to-market resources and services, including the SAP App Center digital marketplace.
In addition, SAP is offering free access to test and demo systems on its intelligent enterprise software, SAP S/4HANA Cloud, and its suite of customer experience solutions, SAP C/4HANA. Partners that qualify (with three certified consultants on staff) will pay nothing to access those test/demo systems for 12 months.
The company made the announcements today, the first day of its SAPPHIRE Now and ASUG (Americas’ SAP User Group) annual conference in Orlando, Florida.
Background: SAP has anticipated impressive growth of its cloud offerings, and the partners that sell them, for some time now. Last year, the company added new assets to its PartnerEdge program, including customer engagement executives whose mission is to help cloud partners maximize their client relationships.
In December, after getting a sneak peek at data from IDC’s forthcoming study, SAP announced that its partner ecosystem was projected to double by 2024, and that by the same year, the number of partners focused on creating and selling their own software in the cloud was estimated to expand 24% from 2019. The SAP Cloud Platform would be up to the task of fueling that growth, company officials said, opening up 12 months of free access to the platform.
To date, 850-plus partners have subscribed, and more than 1,400 are building solutions on SAP Cloud today.
The Buzz: “Through the new integrate option, SAP is enabling partners developing outside the SAP environment to connect their unique data, content, and business services to SAP solutions,” said Karl Fahrbach, chief partner officer at SAP. “We recognize that to meet the specific needs of customers on their journey toward becoming intelligent enterprises, our partners require flexibility when building complementary capabilities and integrating those with SAP solutions. Thus, it will help partners expand their market reach and help customers drive more insight and intelligence from their business processes powered by the solutions they trust.”
“SAP’s partner ecosystem is central to our ability to provide businesses across the world with a road map to the Intelligent Enterprise,” said Adaire Fox-Martin, member of the executive board of SAP SE and president of global customer operations. “We continually evaluate the services we provide to our partners to ensure they are optimally equipped to deliver value to our customers. The test and demo systems on SAP S/4HANA Cloud and SAP C/4HANA for our trusted partners are the latest offerings in our ongoing commitment to their success.”