ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

SAP doubles down on ANZ channel, cloud - and SME market

By Heather Wright
Tue 23 Aug 2016
FYI, this story is more than a year old

SAP says it’s doubling down on its Australian and New Zealand channel efforts and going ‘all channel, all cloud’ for the SME market locally.

Rodolpho Cardenuto, SAP global president of global channels and general business, says the vendor, traditionally known for its enterprise ERP offerings, is ‘very much focused’ on increasing its share in the SME space, with partners.

Cardenuto, pictured, was in Australia last week to meet with partners and launch the vendor’s new PartnerEdge Cloud Choice program.

The new model is designed to help SAP partners accelerate cloud sales and profit from selling in the cloud.

SAP says the model will help partners who have concentrated on-premises solutions and new partners to establish and maintain a profitable cloud business.

“It removes the financial liability and risk from partners, allowing them to focus on driving cloud adoption across their organisation and customer landscapes,” SAP says. “Partners should now be able to realise a steady revenue stream that’s locked in for the life of the customer and partner relationship.”

Says Cardenuto: “We decided to go 100% with our partners into the General Business [SAP’s term for the SME market] and decided to have a revenue share with our partners in this SME segment.”

That revenue share will see partners reaping returns of between 5% and 20%, depending on the deal and line of business sold.

While in Australia, Cardenuto also helped launch an ANZ partner sales academy.

“We have a sales academy for our people internally, but we are launching the first one for ANZ now.”

The academy will kick off in January.

Cardenuto says the academy, CloudChoice program and its digital sales motion, are all designed to ensure partners are part of the whole sales value chain.

“We want to deliver the implementation 100% to our partners in this segment, so we are building a franchise business in the general business segment, from digital marketing, digital sales motion, up to the delivery of the solutions with our partners.”

Sumal Karu, SAP Australia and New Zealand channels and general business general manager, says the copany sees ‘a massive business opportunity’ across ANZ for cloud in the midmarket.

“Cloud has been front and centre over the last five to 10 years in a public sense in ANZ, but what were are seeing more and more rapidly is the midmarket, or general business companies, are defaulting to cloud not just for their accounting systems but also for their functional business applications.”

Karu says SAP and its partners are well placed to capitalise on that growth.

“We see the convergence in the local market in a propensity towards cloud and the market – and our competition – are validating it.

“We also have a portfolio that is applicable to that midmarket buyer, and the third, most important thing, is that SAP has brought to market a pioneering program which is going to help our next generation of partners take this to those customers quickly and in a profitable sense.”

Karu says SAP has built a portfolio of ‘all of the functional cloud solutions’.

“If an HR function requires a cloud solutions, we have got it. If it’s procurement, we have that; if it’s a digital customer experience piece we have that.

“But our pièce de résistance is cloud ERP.”

However, Cardenuto admits the economics for the cloud ‘are very challenging’.

“That’s why we decided to develop this CloudChoice profit option.

“We have the traditional reselling model and that model is a good model, but it does not necessarily scale from a cloud perspective, so we’re moving from the traditional reselling model to a revenue sharing model with the cloud,” Cardenuto says.

Partners will receive a revenue share on contracts as well as over the life of the relationship.

“With this, channels can build a rateable perpetual revenue model.

“We build ourselve perpetuity in terms of revenue and we share that with our channel so they can participate in the success we have in the cloud.”

Karu says just as the likes of Wall Street value cloud companies differently to on-premise companies, so SAP believes cloud partners offer high value.

“We’re taking that same principal of an annuity business model that gets valued by Wall Street in extreme multiples versus an on-premise business model, and we’re taking the concept down to our partner,” he says.

“We’re telling our partners if they invest in cloud, they have an annuity stream they can build in which values their business on a much higher basis,” Karu says.

“With the CloudChoice profit option, the channel can scale their business much more with the cloud and they can make more money with the cloud business and avoid some of the liabilities we have in the VAR or reselling model,” Cardenuto says.

Related stories
Top stories
Story image
Tech job moves
Tech job moves - Adatree, Brother, Databricks, Nutanix & Rubrik
We round up all job appointments from May 20-26, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Could New Zealanders initiate a cyber attack from within?
The threat landscape is significantly increasing worldwide, and the opportunities it presents are a growing concern in Aotearoa.
Story image
The path to bolstering supply chain security in New Zealand
A significant amount of today's business and leisure activity relies on IT supply chains. From complex international freight trades to local small business distribution channels, any supply chain that involves IT infrastructure serves as a crucial tool in our daily lives. 
Story image
Ingram Micro
Ingram Micro NZ bolsters MSI product range with new offerings
The inclusion of MSI Mobile Workstation and Business & Productivity laptops rounds out the MSI product portfolio.
Story image
Symbio consolidates TNZI business to support APAC expansion
Symbio has recently announced the consolidation of its international business (TNZI) under the Symbio brand to support its Asia Pacific expansion strategy.
Story image
Vectra AI
Vectra’s inaugural Partner of the Year Awards revealed
APAC companies Baidam, Firmus, ShellSoft and Macnica have been recognised in Vectra AI's inaugural Partner of the Year Awards.
Story image
'Alarming' rise in ransomware threats - Verizon report
As criminals look to leverage increasingly sophisticated forms of malware, it is ransomware that continues to prove particularly successful.
Story image
Microsoft NZ announces initiative for local SaaS businesses
Microsoft has announced a new initiative, bringing together all of its tools to help local SaaS businesses build, sell and grow their companies at scale.
Story image
Digital Signage
MAXHUB's Digital Signage range to bolster boardroom productivity
The new MAXHUB Digital Signage technology is purpose-built to make every kind of team meeting more effective.
Story image
BYOD / Bring Your Own Device
How zero trust can lead the battle against ransomware
SecOps teams champion a zero trust strategy to support the fight against the escalating risk of cybercrime and help monitor threat actors across a network.
Story image
Identity and Access Management
The post-pandemic workforce requires secure IAM capabilities
HID Global discusses what identity and access management means for organisations in today's convoluted digital world.
Story image
What every CISO must answer to enable a best-in-class security operations program
It has been widely reported recently that South Australian government employees have been the victims of a cyberattack.
Story image
Dynabook refreshes Portégé X30L series with the Portégé X30L-K
The new model contains hybrid-architecture Intel 12th Gen Core P-Series 28W processor options, Wi-Fi 6E, along with Intel Iris Xe graphics.
Story image
APAC ranks third-highest region targeted by ransomware
Asia Pacific has ranked the third-highest region globally to be targeted by ransomware, according to cybersecurity firm Group-IB.
Story image
Informatica, Oracle enter strategic global cloud partnership
Oracle named Informatica as a preferred partner for enterprise cloud data integration and data governance for data warehouse and lakehouse solutions on OCI. 
Story image
Microsoft previews Power Platform website design offering
Microsoft has announced the preview of Power Pages, the fifth product in its Power Platform family, designed for low-code makers and professional developers.
Story image
Delinea enhances partner experience with new training initiatives
Delinea has announced a range of training and certification initiatives to help scale the capacity of VARs, System Integrators, MSPs and MSSPs to meet the demand for PAM solutions.
Story image
CERT NZ releases first Cyber Security Insights for 2022
CERT NZ has released Quarter One: Cyber Security Insights 2022, which offers an overview of reports about cybersecurity incidents affecting New Zealanders.
Story image
WhatsApp and QR codes the next scam threat - report
KnowBe4 has warned it expects to see an increase in QR Codes and the WhatsApp chat platform being used for phishing and other scams. 
Story image
Hands-on review: HyperX Pulsefire Haste wireless mouse and HyperX Pulsefire XL Mat
With its lightweight Pulsefire Haste wireless mouse and RGB lit Pulsefire XL Mat, HyperX sets out to up your game and add a little colour to your desktop.
Story image
Getac and Optalert expand partnership to promote industrial safety
Getac’s ZX70 Android tablets will be used to support Optalert’s Eagle Industrial early-warning drowsiness detection system for use in mining and transportation.
Story image
Hybrid Cloud
Barracuda expands cloud-native SASE platform
"The expansion of Barracuda's cloud-native SASE platform for hybrid deployment models and IIoT environments solves a number of challenges."
Story image
Data Protection
Information management capabilities to meet privacy requirements
Organisations with customers or operations across more than one country face a spate of new and proposed privacy and data protection laws.
Story image
i-PRO releases smallest AI-based surveillance camera on the market
The new i-PRO mini network camera is now available, with a pocket-sized form factor and full AI analytics functionality.
Story image
Artificial Intelligence
Frost & Sullivan recognises Genesys as leader in new reports
Frost & Sullivan has recognised Genesys as a leader in the cloud contact centre market for its robust cloud and digital capabilities.
Story image
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Global cybersecurity insurance market worth $11.5b this year
Future Market Insights finds the cybersecurity insurance market is expected to reach USD$11.5 billion in 2022, growing to $61.2 billion in 10 years.
Story image
Comcast to use ThreatQuotient for cybersecurity operations
Comcast, the parent company of NBC Universal and SKY Group, has chosen ThreatQ Platform and ThreatQ Investigations to meet their cybersecurity needs.
Story image
Cybersecurity prompts upgrade for 1.3 billion electricity meters
ABI Research finds Advanced Metering Infrastructure (AMI) and cybersecurity concerns are prompting the upgrade of 1.3 billion electricity meters by 2027.
Story image
Infosec unveils role-guided cybersecurity training roadmaps
Infosec Skills Roles maps hands-on training and certifications to the 12 most in-demand cybersecurity roles to maximise training efficiency.
Story image
Sony launches LinkBuds S - the latest model in the series
Sony says the LinkBuds S will give users a unique sound experience through sensor and spatial sound technology, even in AR games.
Story image
Fortinet introduces self-learning AI in latest offering
Fortinet is introducing self-learning AI capabilities in its new network detection and response offering, FortiNDR.
Story image
Digital Transformation
SAP partners with New Zealand Rugby for digital transformation
The multi-year partnership will see SAP advance NZR with its organisational operations, team performance, fan experience and sustainability goals.
Story image
Red Sift
Entrust expands strategic partnership with Red Sift
Entrust has expanded its strategic partnership with Red Sift to make it easier for businesses to adopt Brand Indicators for Message Identification (BIMI) standards for email identification and security.
Story image
Digital Marketing
Similarweb acquires SEO and rank tracking company Rank Ranger
Digital intelligence company Similarweb, which specialises in analysing web traffic, has acquired Rank Ranger, a market leader in SEO and rank tracking.
Story image
Employees on the frontline of cyber defense - report
In the first quarter of 2022, employees found themselves more than ever at the frontline of cyber defense, according to a new report from Kroll. 
Story image
The ups and downs and runarounds of catching cybercriminals in NZ
We're becoming more and more aware of cybercrimes but how many criminals actually get caught? The New Zealand police explain why the answer is complicated.
Story image
Asia Pacific plagued by sophisticated bad bots - report
The three most common bot attacks were account takeover, content or price scraping, and scalping to obtain limited-availability items.
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Elevation of Privilege the top 2021 Microsoft vulnerability
BeyondTrust has released its 2022 Microsoft Vulnerabilities Report, finding that Elevation of Privilege is the top vulnerability category for the second consecutive year.
Story image
Third-party automotive apps bear significant privacy risks
Mobile applications for connected cars provide various features to make life easier for motorists, but they can also be a source of risk.
Story image
Lexmark launches A/NZ first with retail publishing solution
Lexmark, a global imaging and IoT solutions leader, launched its Publishing Platform for Retail (PPR) in Australia and New Zealand.
Story image
Manhattan Associates
Shortening the click-to-customer cycle through smart technologies
Speed of delivery without accuracy is a dealbreaker for consumers. How can retailers operating in an omnichannel environment overcome the challenge of click-to-customer cycle times.
Story image
GapMaps Live to improve brand decisions on physical locations
GapMaps has released its latest service GapMaps Live, giving more insights and features to help brands make better decisions about physical locations.