Working with our partners, customers can seamlessly expand core SAP solutions to deliver impactful business outcomes. SAP partners are essential in delivering the solutions that support customers in adapting, inventing, and bringing new ideas to market.
Per a new IDC eBook* commissioned by SAP, partners that invest more than 20% of revenue in intellectual property (IP) can expect 60% higher revenue growth than average.
Even amid business uncertainty, 93% of partners expect accelerated growth in SAP-related revenue compared to the year before. The greatest opportunity for partners exists with growing IT services and public cloud services, such as software as a service, platform as a service, and infrastructure as a service.
Despite economic uncertainty, SAP partners that continue to invest in innovation are reaping the rewards and realizing healthier margins.
SAP partner Accely shared that developing IP requires commitment, investment, and patience, but it can be a market differentiator and accelerate revenue and profit. This was further proven by IDC, which found that for every $1 SAP makes, partners investing in developing and selling their own cloud software make $10, and those investing in their own services make $8.81. With offerings like SAP’s partnership with Coursera, one of the world’s largest online learning providers, partners can upskill their consultants and capitalize on this growth opportunity.
“Companies today are facing more uncertainty than ever before, between supply chain shortages, climate change, talent gaps, and economic softening,” said Paul Edwards, research director, Software Channels and Ecosystems, IDC. “Based on our research, partners that invested in developing IP and partners engaging in more than two SAP solutions experience the greatest benefit of working with SAP.”
Technologies like SAP Business Technology Platform (SAP BTP) are enabling partners to achieve healthy gross profit.
SAP partner retailsolutions AG leverages SAP BTP to develop processes and IP: “Up to 70% of our revenue comes from SAP S/4HANA migrations and SAP BTP, which is the glue for the future — it has a strategic relevance for us,” said Florian Kraus, managing partner, retailsolutions AG.
Additionally, IDC found that SAP BTP enables partners to continually improve upon customer relations, meaning SAP partners are maintaining customers for longer — if not for life.
“With the rapid acceleration of digital transformation, customers are relying on SAP partners to navigate the next steps of their digital journey,” said Karl Fahrbach, chief partner officer, SAP. “According to IDC, 43% of partner revenue comes from industry-specific solutions, which shows that investing in innovation to serve evolving customer needs is a proven path to profitability for our partners. SAP is firmly committed to helping partners apply their industry-specific knowledge to create exciting new growth opportunities.”
Mark Weyman is head of Ecosystem Profitability at SAP.
*IDC eBook, sponsored by SAP, SAP Partner Ecosystem Growth Drivers: Strategies for Increasing Partner Profitability and Customer Value, doc #US50040723, January 2023