Today, businesses are innovating at lightning speed. To help partners seize this opportunity, SAP has launched SAP PartnerEdge Cloud Choice, flex model.
The flex model offers partners a one-time 10% total contract value (TCV) commission for managing the sales cycle and increased commission for managing the customer life cycle all the way through to renewal. Additionally, SAP is expanding this revenue-share model across all market segments by introducing the one-time commission for managing the sales cycle in the large enterprise, thereby creating new opportunities for partners.
Available exclusively for partners on the SAP PartnerEdge, Sell track, the flex model for SAP PartnerEdge Cloud Choice is designed to commercially balance the customer life cycle by splitting it into two different stages: sales and post-sales. Customers can choose the best partner for their specific requirements and partners can focus on garnering new accounts and driving subsequent customer engagement. With this model, partners are better equipped to offset initial costs and then invest in teams to grow the customer relationship.
Implementing this flexible, balanced model can ultimately boost profitability and enrich the customer experience. Already, we’re seeing partners help yield customer success with the model, such as partner Delaware Consulting, which has supported its customer in driving a cloud transformation through the RISE with SAP offering.
“SAP PartnerEdge Cloud Choice, flex model, is simple and powerful,” says Aymeric Fosset, associate partner at Delaware. “Simple, because the commission calculation and price are clearly defined upfront, allowing the partner to be rewarded for the sales cycle management effort right after the contract signature and customer payment. Powerful, because it complements the RISE with SAP offering, allowing increased financial flexibility for the customer.”
This new revenue-share and go-to-market framework supports cloud adoption and is part of the growth of the broader SAP partner ecosystem in the cloud, which is expected to double over the next three years. Through emphasis on both landing customers and fostering engagement, SAP and partners have new opportunities for success now and in the future.
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Cathy Daum is senior vice president of Go-to-Market and Scale Partnerships in the Global Partner Organization at SAP.