Partner Managed Cloud | Spotlight Article

Accelerating the Adoption of SAP Solutions in the CloudHow Customers Can Benefit from SAP and Partner Innovation with Partner Managed Cloud

by Roger Quinlan, SAP

SAP customers are embracing the cloud like never before.

The rate at which new enterprise customers with diverse

requirements across many industries are shifting to the

cloud continues to skyrocket; after all, who doesn’t love

fast, flexible, and affordable software options?

Recognizing this trend, SAP introduced partner

managed cloud, a new route to market that taps into

the expertise of the SAP partner ecosystem across all of

our key industries, market categories, and innovation

areas. With partner managed cloud, a partner delivers

packaged and managed SAP solutions to end customers

through the partner’s private hosted cloud services. The

offering may include the partner’s unique intellectual

property (IP) and comes with full application support,

management, implementation, and migration services

provided by the partner.

Making the Shift to the Cloud EasyPrivate cloud deployment has revolutionized the way

that organizations install and manage business-critical

applications. The speed and flexibility of private cloud

environments have prompted an estimated 70% of

organizations to adopt private cloud solutions in

some form.1 And it’s showing no signs of slowing: IDC

predicts that hosted private cloud revenue will grow from

$8.9 billion in 2014 to $40.6 billion by 2019, equating

to a compound annual growth rate of 35.4%.2 With the

partner managed cloud program, SAP has embraced

these trends by making the shift to the cloud easy for

partners and customers with diverse needs.

Using their hosted private cloud environment, SAP

partners are able to deliver a complete, customized

1 Aberdeen Group, “A Simple Path to Private Cloud” (July 2015; bit.ly/1S4orXu).

2 IDC, “Worldwide Hosted Private Cloud Services 2015–2019 Forecast: ‘New Models for Delivering Infrastructure Services’” (September 2015; bit.ly/1Vn9SCR).

solution for an industry or line of business, and to build

a repetitive model and platform that leverages their IP

and go-to-market (GTM) capabilities to service their

market. Customers benefit from proven SAP solutions at

an affordable cost that are tailored to their needs and are

up and running in weeks, not months, allowing them to

focus on their core business instead of on a lengthy migra-

tion process. This delivery model also allows customers

to optimize their cash flow by converting the solution

from a capital expense (CAPEX) to an operating expense

(OPEX), resulting in more manageable payment options.

Continued Investment in Customers’ Cloud SuccessOrganizations that have adopted private cloud solutions

have seen results; for example, one study notes that 71%

of businesses report easier application management and

administration after deploying a private cloud.3 SAP is

invested in extending these benefits to all of its custom-

ers through partner managed cloud. In less than one year,

40 partner managed cloud solutions covering cloud white

spaces have been added, and we expect the adoption of

SAP solutions in the cloud to continue to grow.

Partner managed cloud harnesses the power of the SAP

ecosystem to deliver distinctive private cloud solutions

that meet customers’ individual needs (see Figure 1). To

learn more, visit www.sap.com and search “PMC.”

Roger Quinlan (roger.quinlan@sap.com) is Senior Vice President of the Global Partner Managed Cloud organization, a group that helps develop new channels to market for delivery of SAP solutions in the cloud. Over the course of his 19-year career at SAP, he has been responsible for global strategic services partners as well as leading roles in sales, services, and delivery operations.

3 Aberdeen Group, “A Simple Path to Private Cloud” (July 2015; bit.ly/1S4orXu).

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This article appeared in the Apr May Jun 2016 issue of SAPinsider (www.SAPinsiderOnline.com) and appears here with permission from the publisher, WIS Publishing.

Partner Managed CloudAccelerate Growth and Innovation

Private cloud has revolutionized the deploymentand management of business-critical applications.

Private cloud offers the biggest growth opportunity for third-party providers.

70% 46%

60%

Of organizations haveadopted private cloud

in some form*

Of businesses report easier application management and

administration with private cloud*

Of companies using private cloud have seen a

reduction in IT complexity*

71%

Private cloud helps customers focus on running their business, not their IT systems.

Of the savings realized in the first year**Lower total cost of ownership (TCO)

over on-premise**

51%30%

Improvement in implementation time**

90%

Leading infrastructure providers are 60% more likely to leverage third-party private cloud services*

* Aberdeen Group, “A Simple Path to Private Cloud” (July 2015; bit.ly/1S4orXu).

**REALTECH, “SAP TCO Study: SAP’s Partner Managed Cloud (PMC)” (February 2015; bit.ly/1Pcevqn).

Figure 1 Accelerate growth and innovation with partner managed cloud

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