SAP set to recruit new layer of VARs
Vendor abandons plan to name distributor for BusinessOne
SAP has launched three channel initiatives and made a U-turn on its distribution strategy only a year after the launch of BusinessOne, its first SME product.
The vendor had maintained that it would appoint a distributor. However, twice last year it delayed an appointment. The company revealed to CRN last week that it does not intend to go down the distribution route.
Instead, SAP will appoint a second tier of resellers, said Rachael Petrie, head of channel development SAP UK.
"We do not want to lose the close relationship we have with our resellers, but we wanted to grow our channel," she said.
Petrie explained that 25 or so resellers already cover the UK market and the new second tier of 'sub-resellers' will be there to help penetrate the market further.
"We have set a target that 15 per cent of SAP's total revenue must come from the SME sector by 2005. Implementing another tier of VARs will help us achieve this," she said.
Duncan Wyeth, sales and marketing director at SAP VAR Serion Logic, said SAP's channel is going as well as could be expected in the current climate.
"There is uncertainty among end-users because there isn't a huge [BusinessOne] user base out there, but SAP's attitude to the channel is good. It has a fresh approach to partners," he said.
Wyeth added that not appointing a distributor is a good move, as it would "cut margin for resellers, and is unnecessary".
SAP also said it was looking to attract more ISVs to embed SAP within their own solution, a move rivals IBM and Microsoft have already been pushing.
"We have been looking closely at vertical markets and ISVs know verticals very well. This way they can maintain their own branding, and work closely with SAP," said Petrie.
The vendor also said it will allow VARs and ISVs to take its vertically aligned product, SAP All in One, to customers slightly above the mid-market.
At present, the vendor sells into higher accounts directly to help reduce conflict. Petrie stressed that the new system would happen on a case-by-case basis.