If you’re in the business of providing services or reselling enterprise solutions to customers of any size or scale, you know that the cloud represents both incredible opportunities as well as unprecedented challenges. The cloud entails a fundamentally different business model than traditional software and hardware selling practices. But as a provider, you’ve likely learned a lot about the cloud and may already drive a sizable revenue stream in a related business.
Many customers have adopted a cloud solution for some aspect of their business, and if not, they’re probably in the evaluation phase of their buying journey. As their trusted advisor, you are in the ideal position to guide them to the right solution. It also means that you can earn a considerably larger share of business while ensuring revenue via subscription-based services in the future.
Consider the momentum of the cloud. According to one study, 80% of large organizations ask for a software-as-a-service (SaaS) delivery in the cloud, with a full operational expenditure (OPEX) environment, and 66% of buyers believe the best route for adopting cloud solutions is to stick with a single major cloud provider. The momentum is unstoppable, essentially spanning across all lines of business (LoBs) to every C-level leader thinking progressively and seeking operational excellence. So how can you maximize your cloud business and take advantage of the growing adoption rate? By aligning yourself with SAP as a partner managed cloud or a cloud business process outsourcing (BPO) provider, you can open new collaboration possibilities, access a larger customer market, and explore new areas for growth.
Partner with the Best
When it comes to providing a service in the cloud, the bottom line often comes down to the caliber of your partnerships. At SAP, we’ve moved in a distinctly partner-friendly direction around cloud for this very reason. Partner managed cloud is a key route to market for SAP, tapping into the expertise of our global ecosystem and encompassing all our top industries, market categories, and most important areas of innovation.
With partner managed cloud, a provider delivers packaged and managed SAP solutions to end customers through their hosted cloud services. This offering also includes the providers’ unique intellectual property (IP) and comes with full support and management of the applications, implementation, and migration services via the provider. Providers have full flexibility to package the solution to deliver a quick and convenient, subscription-based service for their customers.
Cloud BPO licensing with SAP enables BPO providers to elevate their business with the cloud and helps providers apply their unique skillsets and capabilities to achieve far-reaching value across a business function in part or in its entirety (for example, payroll, HR administration, procurement, travel, accounts payable, support, and so on). Providers act as the general contractor to provide services under one commercial agreement to the end customer.
Whether it’s through partner managed cloud or cloud BPO, the paths to success fit multiple business models. When you begin with a solid foundation of industry-leading solutions, combined with our world-class SAP PartnerEdge program, SAP paves the way for profitably growing your company and its customers in the cloud.
Breaking New Ground
These proven paths for partner growth were introduced in the cloud more than two years ago in response to heightened customer demand for solutions that more quickly deliver business value with a lower up-front cost and strong overall service levels. Since its introduction, the partner managed cloud business has taken off. We have more than 100 partner managed cloud providers in place and a path for steady growth based on market demand.
High double- and triple-digit growth rates characterize these partnerships, and we’re especially encouraged by how well the overall approach is working (see the sidebar for three of many examples).
It’s evident that partner managed cloud and cloud BPO providers are breaking new ground everywhere. We are offering providers what they need to create and sustain unique, customized solutions in the cloud. It’s this level of flexibility in terms of business models and alignment with end-customer needs that will continue to fuel mutual growth.
Learn More, Grow Faster
SAP’s business is based on helping companies run simple every day — why shouldn’t providers do the same? Partner managed cloud and cloud BPO offer the tools and resources to help our partners build, run, and grow a profitable SAP business. For more information, visit www.sap.com and use the search term “PMC,” or visit www.PMCsolutionfinder.com. You can also email us at PMC@sap.com.