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. Know more in this IDC Infographic. What is the Third Platform of computing ? What’s driving new opportunities for the SAP partner ecosystem ?

1. IDC Infographic sponsored by SAP
CLOUD & MANAGED SERVICES
Growth Opportunities for SAP Partners
Shifting to the Third Platform & Cloud Computing
The IT industry is witnessing a shift to what
IDC calls the Third Platform of computing.
It is made up of four key areas:
90% FROM 2013 THROUGH 2020, 90% OF IT
INDUSTRY GROWTH WILL BE DRIVEN BY
3RD PLATFORM TECHNOLOGIES THAT,
TODAY, REPRESENT JUST 22% OF
INFORMATION & COMMUNICATIONS
TECHNOLOGY SPENDING.
CUSTOMERS ARE MOVING
TO THE CLOUD
53% of companies have
adopted some form of
cloud services.
80% of companies are at
least educating themselves
or evaluating the cloud
approach for a specic
workload.
72% of cloud-using
organizations desire to
have a mature cloud
strategy in 24 months.
From 2013 To 2020
Top 3 IT challenges to
execute a cloud strategy
Eective use of
automation, self
service and
orchestration tools
Ability to monitor
application performance
and adjust use
of IT resources
Availability of
robust self service
provisioning catalogue
MOST OF IT
“LIVING” IN
THE CLOUD
2020
2013
25 TRILLION GIGABYTES
OF NEW DATA GENERATED
Cloud Managed Services Market Opportunity
23.5%PUBLIC IT CLOUD COMPOUND
✔ Elastic, use-based pricing
✔ Standard UI technologies
✔ Published service interface/API
✔ Ubiquitous (authorized) network access
Top 10 Verticals for
Cloud Opportunities
1. Manufacturing
2. Communications
3. Resources Industries
4. Professional Services
5. Retail
6. Utilities
7. Transportation Services
8. Insurance
9. Banking
10. Wholesale
ANNUAL GROWTH RATE 2013-2017
5X IT MARKET GROWTH
Top Drivers of Cloud Software
34%
33%
Worldwide 2014-2018 Cumulative SAP Partner
Ecosystem Opportunity in Cloud Managed Services
Global
$33.6B
North
America
$16.2B
EMEA
$8.9B APJ
$3.53
PARTNERS MADE $1.1B OF REVENUE
RELATED TO SAP CLOUD AND
MANAGED SERVICES IN 2013.
THE PARTNER ECOSYSTEM IS
FORECAST TO MAKE $11.3B OF
REVENUE RELATED TO SAP CLOUD
AND MANAGED SERVICES IN 2018.
All IDC research is © 2014 by IDC. All rights reserved. All IDC mate-rials
are licensed with IDC's permission and in no way does the use
or publication of IDC research indicate IDC's endorsement of SAP’s
products/or strategies.
$4.1B
Latin
America
$4.4B
SAP partners around the world will earn $33.6 billion (USD) in revenue in
the next ve years related to SAP’s Cloud Managed Services products.
SAP Cloud Ecosystem Global Opportunity
SAP Cloud Ecosystem Growth
$1 SAP CLOUD
MANAGED
SERVICES REVENUE
SAP PARTNER
REVENUE
For every dollar of partner-generated
SAP cloud revenue in 2014, SAP partners
earn an additional $3.53
Cloud Ecosystem Opportunities
Professional
Services
40.3%
Private cloud hardware,
software, support
27.9%
Other Cloud
Services Resale
2.1%
Co-sell other
services, add-ons
15.8%
SAP Resale
Distribution
13.9 %
2013 2014 2015 2016 2017 2018
$120B
$100B
$80B
$60B
$40B
$20B
0
58.6% CAGR
Ecosystem Revenue
32%
40%
29%
28%
27%
24%
21%
IDC’s Key Cloud Services Attributes
For IT
Operations
Reduce the size of IT
sta, simplify and
standardize IT
infrastructure
For Financial
Accounting
Shift expenses from
CAPEX to OPEX
For Other
Groups
Faster access to newest
functionality, improved
resource utilization, direct IT
solutions control, faster
revenue generation
$100B BUSINESSES WILL SPEND
WORLDWIDE ON CLOUD DELIVERED
IT SERVICES IN 2014
✔ Shared, standard service
✔ Solution packaged
✔ Self-service
✔ Elastic resource scaling
What the Ecosystem is Saying
“The Cloud is the future.” European Regional Systems Integrator
“Predictable, recurring revenue is highly regarded by investors. Industry incumbents
have shown they are willing to pay healthy premiums for SaaS companies, creating an
environment of robust MA activity”. Venture Capitalist, Updata Partners
“I think that if we don't partner with our vendor to do this, then somebody else is going
to take our customers.” North America VAR