Ziff Davis Internet
News & Resources for the IT Reseller
NewsReviewsTech AnalysisCommentarySecurityLinux/Unix
My Account |  
ADVERTISEMENT

SAP Referral Sets a Larger Table
By John Hazard


SAP will launch a formal referral program in March to expand its market reach beyond its traditional partner set, company officials said.

The referral program, which will provide referral partners 10 percent of the initial license sale of any product the vendor sells a new customer within six months of an introduction, is a means to engage non-traditional SAP partners—those unwilling or unable to make a commitment to SAP's PartnerEdge program--and others, including business consultants and Certified Public Accountants, officials said.

The program will also benefit SAP partners unable to sell products such as mySAP and SAP CRM on-Demand, which must be sold direct.

The referral program recognizes that SAP asks a lot of its partners, said Michael Sotnick, senior vice president for small and midsize enterprises, and makes room for those unwilling or unable to make the investment in being a full reseller.

SAP holds a tight rein on its Business One and All-in-One partners, operating in the small and midsize business space, where partners are the primary route to market.

The partner program, PartnerEdge, requires VARs to have dedicated resources and staff and limits the number of resellers to mitigate channel conflict.

The referral program sets a place at the table for those outside the traditional partner mold, Sotnick said.

"The conversations we had with resellers told us there are companies out there representing a competitive solution, or complementary solution, and the starting point [to become an SAP reseller] was expensive," Sotnick said. "Now we're able to walk them through referral program with very little effort."

"If you are a Hewlett-Packard and IBM consulting company specializing in clinical trial consulting for a startup biotech interested in mySAP, you can engage with us in referral partner arrangement," he said.

"If you identify a net new opportunity, you are able to secure 10 percent of the net license fee paid by the customer and be referral partner of record for all license transaction for the next six months. If they come back in a week and say "We need another 20 licenses," that is applied to your referral."

The program will expand SAP's partner reach beyond its cadre of Business One and All-in-One partners, Sotnick said.

It also provides an introductory period for VARs and ISVs interested in a relationship and engages partners who would never otherwise deal with SAP.

The Channel Insider Special: Building Solutions for SMBs

Six partners are on track to become referral partners when the vendor rolls out the program in March and another 15 interested. By the end of the year, the roster could swell to 100 members.

SAP met some criticism from the public two weeks ago when it was announced that its CRM on-demand would be sold directly to customers, but the application, Sotnick said is aimed at the enterprise—businesses with $1.5 billion and more in annual revenue and not the SME (small and medium enterprise) space, where SAP's partners are engaged.

"We're not targeting the SME space right now," he said of the CRM product. "It is SAP's first foray into Software as a Service. It's a great solution for the upper and middle enterprise, and if an SME has with genuine interest, the referral will be open to anyone who brings us the business."

The company's goal is to make the product successful in the enterprise space, and then it will be considered for deployment downstream, he added.

     
Email


TALKBACK

MICROSOFT RESOURCE CENTER
Help boost your sales with BONUS PACKS.
Let BONUS PACKS help you sell more PCs—with up to $1,200 in valuable products and services. Visit
Buy Local Partner site >>

Join the Microsoft Empower program for ISVs.
A relationship with Microsoft allows you to compete with the big dogs. Learn more about resources, tools and training. Get the documentation >>

Test your licensing I.Q. and get a smart offer.
Take Microsoft's brief Windows® Licensing Pop Quiz and receive a free Windows Licensing Kit - only five questions. Take the quiz now! >>
Free Hands-On Training Lab
Find out how key features of SBS 2003 can help you open up a new line of revenue. Register now >>


SBS 2003 Sales Reference Card
This handy reference card contains features at a glance, sales objection handling, pricing guidelines & more. Get it now >>


Microsoft Empower for ISVs rewards your big idea with big benefits and support.
Access key development tools at a low cost to help you develop that idea into an innovative application. Learn more >>




 
FREE WHITE PAPER
Changing Business for the Better: A Practical Guide to BPM


This paper provides an overview of the benefits of BPM technologies and identifies the characteristics of BPM solutions that lead to successful BPM process-centric integration projects.


Download this free white paper to learn more!


>> brought to you by IBM

Attention Microsoft Solution Providers!



Want to gain a competitive edge? Try Microsoft Watch – FREE!



Each week you receive:
  • Microsoft News and Insider Information
  • Expert Analysis
  • Code Names of Upcoming MS Products
  • Year-Ahead Calendar, updated monthly



    Click Here to sign up now for your FREE 14 Day Trial to Microsoft Watch.

  • POPULAR TOPICS
    SPECIAL REPORTS
    White Boxes
    MS vs. IBM
    Linux in the Channel
    Network
    CHANNEL RSS FEED
    Stay in the Zone
    Put The Channel Insider on your desktop.
    FREE NEWSLETTERS
    Subscribe to The Channel Insider: Channel News, Reviews, Resources and more.

    Make your selections below:


    Contract Watch

    The Channel Insider Update

    Preferred e-mail format:

    Enter your e-mail:


    view all newsletters >>
    Channel Insider Quick Links
    Ziff Davis Footer Logo