Published: July 24th, 2013

SAP will be working through its channel partners on extending customer on-premise solutions to the cloud.

This new hybrid cloud offering will be based on existing SAP investments from a customer perspective. In this model, customers will have the choice to re-allocate on-premise elements to cloud applications from SAP or replace on-premise licenses and maintenance fees to a cloud subscription provided by a channel partner. This will also include products from Ariba Networks and SuccessFactors, two companies SAP acquired in 2012 and 2011 respectively.

This new development from SAP is to support the company’s May announcement of a unified strategy for its cloud line up featuring the Hana cloud platform. Hana serves as the foundation for the company’s cloud line up.

SAP’s strategy behind this move is to remove barriers and reduce the total cost of ownership costs for customers, but at their own pace. Also, hybrid deployments can be implemented based on packaged content and implementation services in the areas of human resources, procurement, and business collaboration, among others. The cloud extension model helps companies of any size create entirely new experiences for their customers.

SAP is also including SAP MaxAttention and SAP ActiveEmbedded services to support customers in transitioning without disruption.

Elaina Stergiades, research manager, IDC, said enterprises can face significant hurdles deploying and integrating cloud solutions into very complex IT ecosystems, so they are looking for pricing and adoption models that offer the flexibility to drive an extension to the cloud at their own pace. Adoption models like this from SAP can help customers streamline their investments in on-premise and cloud solutions, making it easier and more cost-effective to take advantage of these new technologies.

Robert Enslin, president of global customer operations and member of the  SAP global managing board, said the unified SAP cloud portfolio significantly expands customers’ ability to grow their businesses by offering real-time, secure access to the cloud — all while lowering the cost of entry and through a great user interface.