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Leverage the Momentum of the Cloud

Align Your Business with SAP to Deliver Software-as-a-Service Applications and Open New Paths for Growth

by Roger Quinlan | SAPinsider, Volume 18, Issue 2

April 20, 2017

If you’re an IT service provider or reseller, it’s likely that the cloud has been — or soon will be — a disruptive force in your business. The cloud is changing how companies consume IT services and software and, as a result, what they expect from their service providers. Fortunately, SAP offers its partners support when it comes to providing cloud services. Discover how aligning yourself with SAP as a partner managed cloud or a cloud business process outsourcing (BPO) provider can enable you to grow your business. 

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.

  • You Lead the Way: Partner with the market leader in ERP software to help organizations reduce complexity, innovate, and stay ahead of the competition
  • Transform Your Future: Leverage SAP’s powerful solutions: applications, analytics, database, mobile, cloud, and platform technology
  • Empower Customers: Extend software across on-premise installations, on-demand deployments, and mobile devices
  • Win Big: Maximize your opportunity, driving more business through more customers to create additional revenue and profits
  • Partner with the Best: Join an award-winning partner program that gives you everything you need to build and grow a successful SAP business

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).

T-Systems Drives Cloud Transformation in South African Hospitals 

T-Systems in South Africa exemplifies the success of partner managed cloud, including how it advanced a large hospital group’s leverage of technology throughout the country. Its SAP HANA-based, healthcare-as-a-service solution has been contracted at 23 hospitals in South Africa, where T-Systems digitally transformed the operations of the hospitals from on premise to the cloud. Their repeatable template localizes and enhances all they do, from hosting and ongoing support to project services, software, and maintenance. The first implementation took only three months.

ABeam Introduces Cloud Real Estate Solution in Asia-Pacific Markets

Another great example is the ABeam Cloud Real Estate Solution (ACRES) recently rolled out in Tokyo for large real estate companies. ABeam Consulting was able to bring together its in-depth real estate industry experience and help transform an antiquated system, replacing it with ACRES, which is based on SAP software and delivered via our partner managed cloud approach. This eliminated the need and expense of regularly updating outdated servers and turned more unpredictable scenarios into consistently higher value for customers. The real estate market had also changed, which resulted in more complex, diverse contract types that needed to be simplified. The flexible SAP-based solution addresses these unique lease management requirements. ABeam Consulting has since taken its ACRES solution and delivered it to multiple real estate companies across the region it serves.

Zalaris Taking BPO and HCM to New Cloud Highs in Europe

Zalaris, headquartered in Oslo, Norway, recently became one of the first SAP SuccessFactors cloud BPO service providers, extending its expertise and value on the industry’s top cloud-based suite for human capital management (HCM). Zalaris entered agreements this year with two public transportation industry operators with deliverables covering cloud payroll and talent management functionality as well as unique BPO requirements. Zalaris expects these and similar developments to lead to additional growth opportunities — doors that were opened by SAP and the cloud. Thousands of employees and leaders are now enjoying Zalaris’ cloud-enabled value with SAP. “It’s clear to us that SAP is making cloud inroads faster and more effectively than other traditional software companies,” says Zalaris CEO Hans-Petter Mellerud. “That’s why we’re in sync with their strategic direction. You can’t beat the combination of quality solutions and a dedicated partner program that understands our needs. We are growing on a more global scale now because of this partnership and what cloud enables.”

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.

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Roger Quinlan
Roger Quinlan

Senior Vice President of the Global Partner Managed Cloud
SAP



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