The new option also allows partners more opportunities to work with enterprise customers, rather than be limited to mid-size businesses and organizations, the channel chief said. We want them to stay engaged and add value throughout the customer lifecycle and make our customers successful.” “We’re looking at the customer and the role of the partners to make those customers successful and then we reward the partners for those activities. The Flex model “is basically moving away from pure reselling or pure implementation services,” Fahrbach said. All this creates recurring revenue streams for solution providers, Fahrbach said. SAP is also improving partner cash flow by paying upfront commissions for sales activities. The new option goes beyond paying partners a percentage of the initial sale to provide a share of a contract’s total value, including incentives for continued customer engagement, and increased commissions for subscription renewals. Under that option partners identified prospective customers and handled implementation and support services – but left the sales contract to SAP. The new flex model replaces the older Cloud Choice, profit option, which launched in 2016 as a way for partners to drive sales of SAP cloud software.
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Topping the list of partner initiatives is the new PartnerEdge Cloud Choice, flex model, a revenue sharing and go-to-market plan that Fahrbach said is designed to reward partners for going beyond selling and implementing SAP software to cover the entire customer lifecycle, including helping customers get the most value out of SAP technology, expanding customer adoption and use of SAP cloud products, and encouraging contract renewals.
More than 100 customers purchased Rise with SAP in the first quarter with about 65 percent of those engagements involving partners, Fahrbach said. Rise with SAP, unveiled in January, is expected to be a major focus of next week’s SAP Sapphire Now 2021 virtual conference. The new partner efforts come as SAP is ramping up channel sales of the recently announced Rise with SAP collection of subscription-priced software and services designed to help businesses and organizations with cloud migration and digital transformation initiatives. “To go from good to great when it comes to the partner experience and making our partners really successful,” Fahrbach said of the company’s channel goals. “The feedback that we got, in terms of where we can still improve, was simplicity – how do we provide a simpler way of engaging with our partners,” Fahrbach said in an interview with CRN, acknowledging that SAP hasn’t always been the easiest technology company for partners to work with. The channel initiatives follow recent steps taken by Chief Partner Officer Karl Fahrbach (pictured) to elicit feedback on SAP-partner relations, using surveys and the company’s global Partner Advisory Council, and to work more closely with partners through the creation of a Partner Success Organization, the new partner dashboard and new partner success key performance indicators. The moves, announced at this week’s SAP Global Partner Summit, include a new go-to-market and revenue-share plan for partners, a new dashboard for tracking partner interactions with SAP and customers, and new solution test and demonstration capabilities. SAP is making significant changes to how the software giant works with its solution provider partners, taking steps to simplify SAP-partner engagements and rewarding partners who establish deeper relationships with customers.
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