SAP touts cloud & managed services opportunity for channel

Business software vendor SAP AG is trying to get its channel partners excited about the cloud and managed services space with new research that puts a big dollar figure on the potential channel opportunity.

SAP commissioned a study by research firm IDC that estimated SAP partners around the world could earn US$33.6 billion in revenue over the next five years related to cloud and managed services from SAP.

It’s part of what IDC is calling the “third platform” of computing, which includes cloud, Big Data/analytics, mobility and social business. IDC says with customers moving to the cloud and managed services from traditional IT platforms, and looking to reduce costs and IT staff size while shifting expenses from capital expenses to a pay-as-you-go subscription model, there are new opportunities being created for channel partners.

“By 2016, IDC predicts that approximately 25 per cent of all software revenue will be subscription-based, presenting new challenges and opportunities for the industry,” said Darren Bibby, vice-president for IDC channels and alliances research, in a statement. “Business partners have a plethora of cloud and managed services solutions from SAP to resell and implement for their customers. SAP continues to provide its partners relevant resources for training and enablement as well for sales and marketing. Together, the products with the SAP PartnerEdge program, offer partners a fantastic opportunity in the cloud and with other Third Platform technologies.”

The research shows the opportunity for SAP partners spans professional services, private cloud hardware, software and support, co-selling of other services and add-ons, reselling and distribution and the reselling of other cloud services. There’s a US$20.6 billion opportunity in the Americas alone.

The study also found that 53 per cent of companies have already adopted some form of cloud services, 80 per cent of companies are educating themselves about or evaluating the cloud approach for a specific workload and 72 per cent of cloud-using organizations desire to have a mature cloud strategy within 24 months.

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Jeff Jedras
Jeff Jedras
A veteran technology and business journalist, Jeff Jedras began his career in technology journalism in the late 1990s, covering the booming (and later busting) Ottawa technology sector for Silicon Valley North and the Ottawa Business Journal, as well as everything from municipal politics to real estate. He later covered the technology scene in Vancouver before joining IT World Canada in Toronto in 2005, covering enterprise IT for ComputerWorld Canada. He would go on to cover the channel as an assistant editor with CDN. His writing has appeared in the Vancouver Sun, the Ottawa Citizen and a wide range of industry trade publications.

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