SAP has announced the availability of SAP PartnerEdge Cloud Choice “profit option” in a move meant to accelerate cloud sales among partners.
“The new model will help partners who have concentrated on traditional on-premise solutions — as well as new partners — to establish and maintain a profitable cloud business,” the company said.
The new option would allow partners to engage with SAP based on their capabilities, resources and expertise, and should ease the transition from on-premise to the cloud, the company said. It explained that with the change, partners should have access to a steady revenue stream that’s “locked in” for the life of the customer/partner relationship.
“Unlike the traditional models where partners manage every aspect of the transaction, the new model and profit option supplement the partners’ activities with elements such as contracting, invoicing and collections,” SAP said.
Additionally, the company promised a larger, more predictable revenue stream that may go directly toward partners’ bottom lines with the aim of increasing the revenue-share percentage for partners selling cloud solutions from SAP over the total lifetime of the contract.
This would reduce financial liability and risk for partners, allowing them to focus on selling the cloud.