Shortfacts - September 2016

SAP Cloud Partner Initiative

With a new initiative, SAP wants to support partners with a focus on the cloud in expanding their business and profiting from sales to the cloud. The SAP PartnerEdge Cloud Choice, profit option aims to create incentives for customers to supplement their existing on-premise systems with a cloud structure. Partners receive commissions in the double-digit percentage range, which are paid out for new business, upselling and contract extensions. This is intended to increase financial predictability and reduce the risk associated with cloud sales for partners, allowing them to concentrate fully on expanding their customers' cloud demand. According to SAP, this ensures stable revenue streams that remain in place throughout the entire customer and partner relationship. Unlike the traditional model, where the partner manages every aspect of the transaction, Cloud Choice, profit option supports the partner's activities with elements such as contracting, billing and capture.