SAP’s Industry Cloud is THE Innovation Space for Channel Partners
At SAP, I am responsible for the topic of industry cloud for channel partners. This blog post is mainly targeting SAP’s channel partners, but should be interesting for everybody working in the midmarket.
In a recent video message to SAP channel partners, Industries and Customer Advisory President Peter Maier said: “I have heard rumors that SAP industry cloud is only for the big guys. This is absolutely nonsense! SAP industry cloud is about productizing your industry solution expertise”
He went on to say: “SAP industry cloud is the innovation space for you, especially for the highly innovative midmarket where many of you operate”
Watch the whole 3:30 mins video message.
Channels are Invited to Join SAP’s industry cloud.
Channel partners are not only invited, but they are encouraged to join SAP’s industry cloud community. As the president of Industries and Customer Advisory at SAP, Peter Maier manages all the SAP Industry Business Units (IBUs). These IBUs constantly conduct market research and are thought leaders for their industries. Based on industry and technology dynamics, the IBUs develop roadmaps and coordinate development activities to ensure SAP has the best portfolio to offer customers in the various industries. SAP is known to be a leader in business software when it comes to industry capabilities.
Channel partners can benefit from SAP’s industry cloud.
Peter’s message is great news for channel partners. SAP’s industry cloud strategy is an important part of SAP’s overall strategy and messaging to the market, and it is great that a senior executive leader such as Peter Maier is endorsing it and inviting channel partners to join. I believe it is a great value for SAP channel partners to leverage the standards, architecture & development guides, programs, branding, and marketing messages associated to the SAP Industry cloud strategy. This makes it easier to be successful in the midmarket for channel partners!
Channel partners are important for SAP to ensure availability of midmarket industry solutions.
Some channel partners I have spoken with have been afraid that SAP does not really want them to develop industry cloud solutions. Many channel partners have developed industry-related IP over the years targeting the mid-market, a segment that has not been the key target segment for the SAP IBUs. Other channel partners are afraid that SAP plans to develop midmarket specific industry cloud solutions which will replace the investments they have made of the years into IP. That is not correct! SAP wants and needs the channel partners to continue to develop IP for the midmarket.
Currently, partners develop at least 80% of SAP’s industry cloud solutions for all customer segments. My expectation is that the percentage will be much higher for the midmarket. Thus, there are lots of opportunities for SAP channel partners. As Peter Maier says: “And now; get started!”
SAP’s industry cloud is the logical next step for channel partners.
Over the years, SAP’s channel partners have become more and more industry focused, both with respect to GTM and IP. Many partners have organized their presales teams to be industry experts instead of the classical ERP module experts. And many channel partners have added a lot of great software IP for their mid-market customers on top of the SAP solutions. SAP’s industry cloud program is the perfect next chapter for these channel partners to take it to the next level: standardize their IP on the SAP cloud standards, get to the cloud together with SAP, and start building new solid recurring revenue streams for themselves.
To learn more about how to get started with SAP’s industry cloud as channel partner, check out this information.
Feel free to follow my profile or the “industry cloud” tag. I post a blog post on the topic of SAP’s industry cloud and channel partners every second week. You can find Q&A and post questions in the industry cloud community.
In the next blog post I discusses the program cost for a channel partner to join SAP industry cloud strategy,
Hi Finn Backer
The messaging here gives the impression that SAP is targeting and supporting only Channel partners for the Industry Cloud opportunity. However, partners developing SAP extensions on BTP are usually Build partners. Where do Build partners fit in SAP's Industry Cloud strategy?
Build partner are very important for SAP in the SAP's Industry Cloud strategy! More than 100 build partners already did develop a sap's industry cloud solution. Check them out here: https://store.sap.com/dcp/en/search?sortCode=name-asc&query=:name-asc:worksWith:Industry%20Cloud
My take on it: if you are a build partner and want to show that you are ready for the cloud in a SAP world, you should develop your solution according to the SAP industry cloud criteria.
Check out the SAP's industry cloud strategy paper for information about how much SAP rely on build partners:: https://www.sap.com/documents/2020/06/eeefb344-9c7d-0010-87a3-c30de2ffd8ff.html
How to get going as build partner, find info on this page: https://partneredge.sap.com/en/solution/industry-cloud/about.html
The point about this specific blog is that many resellers think that SAP's industry cloud is only for big ISVs / build partners. And that is not correct.
Hope this helps!