SAP ups channel sales focus with Cloud Choice profit model

Channel StrategyERP
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‘Cloud-first’ approach ‘removes the guesswork’ and gives partners potential revenue boost

SAP has widened its channel focus with the introduction of SAP PartnerEdge Cloud Choice. The new profit model will enable SAP partners to “accelerate cloud sales, profit from selling in the cloud and deliver digital solutions to help businesses run live”, said the supplier.

The move is part of the company’s strategy to accelerate cloud adoption among partners, which is a target for most other major business software providers, including Microsoft, IBM and Oracle.

SAP_Locations_Walldorf_2012_014_t@900x598“The new model will help partners who have concentrated on traditional on-premise solutions — as well as new partners — to establish and maintain a profitable cloud business,” said SAP. “Partners should now be able to realise a steady revenue stream that’s locked in for the life of the customer and partner relationship,” it added.

The profit option of SAP PartnerEdge Cloud Choice allows partners to choose how they want to engage with SAP based on their individual capabilities, resources and expertise. The option eases the transition from on-premise to cloud environments.

Unlike the traditional models where partners manage every aspect of the transaction, the new model and profit option supplement the partners’ activities with elements such as contracting, invoicing and collections.

Additionally, SAP says it will offer a larger, more predictable revenue stream that may go directly towards partners’ bottom lines, with the aim of increasing the revenue share percentage for partners selling cloud solutions from SAP over the total lifetime of the contract.

“We are 100 percent committed to working with our partners in the cloud space,” said Rodolpho Cardenuto, president, global channels and general business at SAP. “That’s why we are taking a cloud-first approach. It removes the guesswork and immediately gives partners the opportunity to earn a revenue share on contracts, as well as over the life of the relationship.

“As a key cloud player, SAP must rely on our network of partners to tap into this expanding market and help our mutual customers succeed on the path to digital transformation.”

@AntonySavvas