Business "through the clouds": SAP anticipates its steps to win a market of 200,000 million dollars

Business "through the clouds": SAP anticipates its steps to win a market of 200,000 million dollars
In the immediate future, cloud-based activities will represent more than 60% of new net revenues for ecosystem members all around the world
Por iProUP
18.12.2018 16.27hs Innovación

In these last days of 2018, while small and medium-sized companies analyze the challenges that 2019 will bring, a group exhibits high expectations: the ecosystem of SAP partners, the leading global manufacturer of company management software.

According to a study to be published by the IDC consultancy, and to which iProUP had access, during the next five years it is projected that the SMEs will generate some 200,000 million dollars in new net income for the "partners" of the German computer multinational.

Where does this opportunity come from? The same survey gives the answer: from the cloud. In the immediate future, cloud-based activities will represent more than 60% of new net revenues for ecosystem members. Since November 2017, SAP has added more than 250 "cloud" partners, which will account for 10% of indirect (cloud) businesses for SMEs.

The number of partners innovating with this technology is also increasing. It is projected that the number of them focused on creating and selling their own software will grow 24% between 2019 and 2024, the fastest pace of the ecosystem.

While this rapid rebound presents unlimited opportunities for SAP partners, the transition to cloud-based solutions can be an overwhelming task.Access to the cloud

Within the framework of a global forum of business partners held in its offices in the US city of New York, and in which iProUP was the only Argentine media present, SAP announced free and free access for its members to the SAP Cloud Platform , where they can obtain trial, demonstration and development licensing services.

This platform as a service (platform as a service, PaaS) open acts as a single framework for the company's partners to build on existing SAP solutions and extend them.

Through this incentive, members of the ecosystem will be able to renew their subscription to the SAP Cloud main platform for up to 12 months without charge. New members can subscribe to one of the options (this offer excludes members of the open ecosystem). In both cases, there is the alternative of an additional service (up to 64 GB) provided by the SAP HANA business data platform for SAP Cloud Platform.Björn Goerke, Director of Technology and President of SAP Cloud Platform, reported that "more than 3,700 partners have joined our cloud strategy and these free resources will help them accelerate the development of applications in the way that best suits their base. Of customers".

With more than 100 cloud solutions available, the ecosystem will have faster access to resources in the cloud, taking advantage of the platform's more than 150 million subscriber base.

New members can access through a self-service portal. Existing customers who have already purchased one of the SAP Cloud Platform options or an additional service from the SAP HANA business data platform for SAP Cloud Platform will receive an email from SAP with an invitation to renew their subscription.

 SMEs focused on productivity and quality

According to the Trade and Integration Monitor of the Inter-American Development Bank (IDB), trade in Latin America with the world is in a period of continuous growth since 2014, but with a strong demand from the market in general for quality products and services.

According to the same IDB report, 61% of the products exported from Latin America and the Caribbean are recognized as being between high and very high quality levels, which opens up a great opportunity for small and medium-sized firms to grow. that seek to win international markets."In this context, one of the main challenges of growing organizations is to improve the performance of their resources, simplify their business and, above all, deliver an intuitive experience to their customers," said Marcelo Giampietro, global leader in sales of the SAP business partner segment, in a press conference with Latin American media in which iProUP participated.

In Argentina, for example, Mercator, a family company created in 1978 for the manufacture, distribution and export of items of bazaar and gifts of prestigious international brands, implemented this year SAP Business One to support and develop its operation throughout the country .

The company, which this year celebrates its 40th anniversary and has 50 jobs, needed to manage activities related to its production, import and export processes, including the transfer of stock between its warehouses, the production for sales with packaging special, order fulfillment and the administration of returns. With SAP Business One, the firm improved a key activity in its value chain, such as logistics.

Lights and shadows of Latin America

IDC reported that around 47% of small and medium enterprises around the world plan for the first time to acquire data analysis tools in the next 12 months to achieve fundamental areas of competitive advantage, including making decisions based on reliable information. have real-time reports and instant updates on the activity of the company and improve the value chain of which they are part."Today, five out of ten companies in Latin America agree that truthful and coordinated information contributes to improving the planning and monitoring of indicators of their business," said Giampietro.

Currently, 80% of the more than 413,000 SAP customers worldwide are small and medium-sized growth businesses. For Latin America, a region with more than 42,000 customers, the proportion is the same.

The executive stressed that SAP customers in the region are distinguished from other markets by "the passion and energy in doing things", although he admitted that "there are countries that are still in the basics".

"The ease of acquiring technology is greater in other parts of the world than in Latin America, because there is a heavy tax burden on investment. Another (obstacle) is financing and credit, much improved but still expensive "in the region, described the global sales leader of the segment of business partners of SAP.

Giampietro acknowledged that there was a paradigm shift in the business resource management systems (ERP) business: "Nobody wants to talk about 20-month projects, now they ask for six months. Customers are not looking for perfection now. They try and see if it works, "he said.

"I see the channels quite well prepared, they are the first to understand the step from on premise to cloud, because it changes the way of their income. Today, the cloud is sold more by volume and shorter periods, "said Giampietro, who warned that the growth of cloud computing" 30% of channels will disappear. "

This expansion of the cloud also affects SAP itself, which goes from being an "application company to a platform company," the executive said. "There is an era of hyperspecialization, in vertical micro of each industry," he said.

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