Newsbyte: Study Reveals SAP Partners Estimated to Earn US$33.6 Billion In Revenue In Next Five Years With Cloud and Managed Services

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Sep 24, 2014, 04:00 ET

WALLDORF, Germany, Sept. 24, 2014 /PRNewswire/ -- In a new study from global research firm IDC commissioned by SAP SE (NYSE: SAP), it is estimated that SAP partners around the world may earn US$33.6 billion in revenue in the next five years related to cloud and managed services from SAP. Findings of the study are summarized in a new infographic titled "Cloud & Managed Services: Growth Opportunities for SAP Partners"*. The IT industry is experiencing a shift to what IDC calls "the Third Platform of computing," made up of four key areas: cloud, Big Data/analytics, mobility and social business. IDC estimates that from 2013 to 2020, 25 trillion gigabytes of new data will be generated, with most of it "living" in the cloud**.

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According to IDC, customers are moving to the cloud and managed services from traditional IT platforms, which in turn is driving new opportunities for the SAP partner ecosystem to aid in the transition. Customers want to move to the cloud to reduce costs and IT staff size, shift expenses from capital expenses to a pay-as-you-go subscription model, access new functionality quicker, improve resource utilization, increase direct IT solutions control and have the ability to generate revenue faster.

"By 2016, IDC predicts that approximately 25 percent of all software revenue will be subscription-based, presenting new challenges and opportunities for the industry," said Darren Bibby, vice president for IDC Channels and Alliances Research. "Business partners have a plethora of cloud and managed services solutions from SAP to resell and implement for their customers. SAP continues to provide its partners relevant resources for training and enablement as well for sales and marketing. Together, the products with the SAP PartnerEdge program, offer partners a fantastic opportunity in the cloud and with other Third Platform technologies."

The multi-billion dollar partner opportunity related to cloud and managed services from SAP spans professional services; private cloud hardware, software and support; co-selling of other services and add-ons; reselling and distribution; and reselling of other cloud services. This is a global opportunity with US$20.6 billion in revenue estimated in the Americas region; US$8.9 billion in Europe, the Middle East and Africa region; and US$4.1 billion in the Asia-Pacific-Japan region.

The Cloud & Managed Services: Growth Opportunities for SAP Partners infographic highlights that 53 percent of companies have already adopted some form of cloud services, 80 percent of companies are educating themselves about or evaluating the cloud approach for a specific workload and 72 percent of cloud-using organizations desire to have a mature cloud strategy within 24 months. The top 10 industries revealed in the study for cloud solutions and managed services from SAP are manufacturing, communications, resources industries, professional services, retail, utilities, transportation services, insurance, banking and wholesale.

For SAP partners interested in moving their business to the cloud, visit the SAP® PartnerEdge® program site to access details on the Cloud Blueprint Transformation Campaign. The marketing-enablement training program helps partners to transition to the cloud.

For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews and @SAP4SME, and see videos on the SAP4SME YouTube channel.

Media Contacts:
Amanda Mountain, +1 (315) 878-2290, [email protected], EDT
Cindy McKendry, +1 (503) 231-7274, [email protected], PDT

*IDC Infographic, sponsored by SAP, Cloud & Managed Services: Growth Opportunities for SAP Partners, 2014
**EMC Digital Universe Study, with research and analysis by IDC, April 2014

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SOURCE SAP SE