SAP is leaning on its partner ecosystem for its cloud transformation and business AI push.
According to Karl Fahrbach, chief partner officer, SAP is intensifying its efforts to help customers adopt cloud solutions and leverage the latest innovations, with a particular emphasis on embedding business AI across its portfolio.
The company’s partner ecosystem, which has been integral to SAP’s success for over five decades is playing an increasingly vital role in this transformation.
“About 95 per cent of all projects, implementations, and migrations are now done by partners,” the SAP exec says.
“Partners are key for expanding in mid markets, driving adoption, and augmenting our portfolio.”
At its SAP Partner Summit in February 2024, the company unveiled its vision for business AI.
This included the introduction of Joule, an AI-powered copilot intended to improve the user experience for SAP applications.
The company also announced strategic partnerships with tech giants like Anthropic, Meta, Google, and Microsoft to enhance its AI capabilities.
An open approach to AI
SAP employs a user-generated approach to AI, with a generative AI platform that allows partners and customers to build custom AI use cases.
“This strategy not only empowers customers but also creates new opportunities for partners to develop industry-specific solutions and offer implementation services,” Fahrbach explains.
“Business AI is not about AI alone – it’s about maximising value and driving adoption.”
SAP is also now moving towards an outcome-driven approach in measuring partner success.
“We’ve moved from measuring partners primarily on business volume to focusing on the value they add to customers,” the Fahrbach adds.
New metrics include successful projects, number of lives impacted, and percentage of projects in escalation.
Looking ahead, SAP envisions a more partner-driven future, particularly in the mid-market segment.
The company aims to significantly increase indirect revenue and have partners drive more territories.
However, the transition presents challenges for partners accustomed to traditional on-premises business models.
SAP is supporting this change through various initiatives, including a “case for cloud” programme, incentives, and enablement resources to help partners adapt to the new cloud-centric landscape.
“The key is managing this change effectively and quickly,” he emphasises.
“The new world is not the future – it’s starting now.”
As SAP continues to evolve its partner strategy, the company is committed to balancing the needs of both large, established partners and smaller, niche players.
Initiatives like the recently launched learning hub for partners aim to level the playing field, providing equal access to resources and training.
As the landscape continues to evolve, the company’s focus on innovation, partner enablement, and customer outcomes will likely play a crucial role in shaping the future of business technology.
