Ingeniero

Cloud Applications

How to Make Money in the Cloud

Transforming Sales to Keep Pace with Technology

How to MAke Money in tHe Cloud

Table of Contents
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the Business opportunity Why SAP and Why SAP® Business ByDesign®? Why Now? Evolving Models Different Business Models Contemplation Points

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the impact on the Balance Sheet Current Assets Contemplation Points working Capitaland Cash Flow Simple Model of Cash Consumption with SAP Business ByDesign Contemplation Points

6

Strategic Business options for Partners Cloud and Defensive Strategy Cloud and Offensive Strategy Partner Strategic Options Contemplation Points

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the impact on Business Valuation Earnings Multiples The Value Acceleration Do the Math Contemplation Points

9

Partner infrastructure andCapability Requirements Organizational Structures Marketing Capabilities Sales Capabilities Technical Capabilities Financial Capabilities Contemplation Points

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what Has to Happen How Fit Are You to Execute This Transition? What Might You Have to Build and Why? How to Engage with SAP Further References

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the impact on income Statements Revenue impact Expense Impact Profit ImpactContemplation Points Sample Income Statement with SAP Business ByDesign

wHy Cloud?

The Business Opportunity
Cloud computing and software as a service (SaaS) have in a few short years transformed the landscape of the information technology and communications industry (ITC). The transitions from historical models of the sale of on-premise software to the sale of software as a service have begunin all of the major software companies in all of the major markets around the world.
The industry changes driven by cloud technology and SaaS are not transitional in nature but structural, and the software business will never be the same (see Figure 1). Structural changes in the environment require structural changes in those that sell into and function in the environment. As businesspeople, wecannot afford to miss structural changes in our business; so we must embrace cloud technology as one of those structural changes. Here are a few data points describing the fundamental shift to come: • Forrester forecasts that the global market for cloud computing will grow from US$40.7 billion in 2011 to more than $241 billion in 2020.1 • SaaS delivery will significantly outpace traditional softwareproduct delivery, growing nearly five times faster than the software market as a whole.2 wHy SAP And wHy SAP® Business Bydesign®? A reseller of SAP® solutions has to face many different decisions and investment options. There is the structural decision whether to invest in an on-premise or an on-demand solution. The question for an SAP partner, once a cloud decision has been made, is why use SAPand the SAP Business ByDesign® solution? The decision to invest in SAP Business ByDesign is an investment opportunity. Many variables come into play in this decision, including your prior experience with SAP as a partner. Sample variables include whether you have made money with SAP in the past and if it seems likely that you can make money with SAP Business ByDesign going forward. The purpose ofthis document is to assist you in making the investment decision for SAP and for SAP Business ByDesign on behalf of your organization. Whether or not you are currently a value-added reseller (VAR) of SAP solutions, you likely are being bombarded with a number of “invest in me” messages generated by a myriad of cloud and SaaS vendors. Your challenge, like that of any business with an establishedrelationship with SAP, is to decide if cloud is right for you at this moment. If you think it is, you must then decide if SAP is the organization and SAP Business ByDesign the solution you wish to invest in. For you, the purpose of this document is to help you make your investment decision as you examine the variety of cloud and SaaS “franchises” currently offered on the market. To this end, we...