SAP sharpens focus on vertical resellers

SAP will expand its focus on vertical markets, as it looks for market traction

The German software vendor told CRN that it has identified banking, retail and the public sector as three important growth areas for its business. “SAP will align to focus on these three verticals more closely. It won’t be a fundamental shift, but we will look to partner with specific resellers to gain traction in these markets,” said Donal Madden, head of channel for UK and Ireland at SAP.

Madden said that as well as expanding existing resellers’ focus, SAP will create partnerships with new resellers that have a proven track record in any of the three verticals.

“We aren’t talking dozens of new resellers, because we don’t want to cause downward margins as a result of partners looking over their shoulders at competition. We will bring new ones on board that have a specific focus in these markets, and provide investments and business plans to help them develop,” he said.

Last week CRN reported that within the next year SAP will develop a two-tier distribution model for its Business One software, mimicking similar models in its other European operations (CRN, 5 September).

Ian Caswell, managing director of SAP VAR Sapphire, said: “These verticals will probably be to do with the MySAP all-in-one product.

“An expanded vertical focus is good for partners, but it may prove difficult to move resellers over because they tend to be very focused on their own verticals. It also depends on their core competencies.”