SAP innovates the channel

By 2015, 40% of SAP's business will come from alternative channel partners, as the company seeks to accelerate growth and its global footprint.

This is according to Eric Duffaut, SAP global president of ecosystem and channels. Duffaut was speaking during a roundtable at SAP's Sapphire Now conference, in Madrid.

Duffaut said SAP is driving its channel partner network, and has grown its small and medium enterprise (SME) segment by 42%. Currently, 76% of SAP's customers are SMEs, at 90 000 out of 150 000 customers.

Duffaut explained that 80% of SAP's mobile applications come from partners. "Today, we can only effectively compete by building a strong channel network. Our success depends on how we embark on developing this channel ecosystem."

He added that co-innovation is a key part of SAP's strategy; working closely with partners to develop applications.

Luis Murguia, SAP senior VP of ecosystem and channels for the Europe, Middle East and Africa (EMEA) region, concurred. "After the SAP acquisition of Business Objects, we had a much wider choice of solutions for our customers, and had to re-think how we could address the market and reach the right customers.

"SAP has started the new partner ecosystem and channel to embrace all of its partners to drive a much more holistic approach compared to the past; which was segmented."

Uwe Bohnhorst, COO of itelligence, a SAP partner, pointed out that the partner ecosystem means it now has new revenue streams and the ability to make its business model more robust, scalable and profitable.

"Now, with SAP moving towards platforms, we as a partner have the ability and duty to understand our customers' business and co-innovate with partners in a system that provides real value."

SAP recently acquired e-commerce firm, Crossgate in a deal that closed on 1 November. The Crossgate platform has enabled SAP's customers to connect electronically in the cloud with thousands of partners and extend a company's business processes to its community.

According to the company, participation in this business network will eliminate the need for costly point-to-point integration, helping reduce complexity, while enabling its partners to scale up.

Recent partnerships, which have expanded on-demand solution options from SAP and extended its ecosystem, include Amazon Web Services, Dell, HP, IBM, Microsoft, Virtual Computing Environment coalition and Verizon.