Accelerate the Move of Joint Installed Base with

RISE with SAP and Partner Managed Cloud

December 2021

INTERNAL – SAP and Partners only

Agenda

▪ Overview – The What, How, and Why of Partner Managed

Cloud

▪ Basics – RISE with SAP in the Context of Partner Managed

Cloud, Value for Customers, Partner Managed Cloud
Providers, and SAP Engagement

▪ Rules of Engagement for RISE with SAP via Partner

Managed Cloud

▪ Next Steps

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What is partner managed cloud (PMC)?

Partner managed cloud

provider
IP-implementation | (Hosting) | Application management services
| Process execution support | BPO Services

Partner managed cloud

provider’s customer(s)
= End customer

Partner managed cloud at SAP is a license model:

▪ The partner managed cloud provider is SAP’s licensee. Partner managed cloud providers inform SAP about their end customers via order
form to SAP (This means that there is no contractual relationship between SAP and end customer under the partner managed cloud
agreement)
▪ SAP grants use rights to the partner managed cloud provider to run the end customer’s internal business operations (that means 3rd- party
use rights, owned by the partner managed cloud provider; not for internal usage; no resell), from application management services to full
business process outsourcing (BPO)
▪ Applicable for SAP’s on-premise software (term licenses) and SAP’s cloud services (subscription), complemented with industry and/or LoB
expertise and intellectual property (IP) by the partner managed cloud provider

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How does partner managed cloud work?

On-premise software/ Cloud solution Partner managed cloud Provider service

provider
End customer

On-premise software
▪ Owns the third-party use rights from SAP for ▪ Fully-managed cloud service
Standard perpetual license transforms into one or multiple on-premise or cloud solutions for one or more functions
flexible term license per end customer
▪ In case of on-premise software, provides ▪ Enriched SAP solutions with tailored
hosting and data storage services (own or commercials
Cloud solutions sub-contracted) ▪ Single vendor experience for
Subscription to SAP’s cloud services from subscription license, services, and
▪ Enriches the SAP solution through adding
SAP per end customer support
provider’s industry IP, services, and solution
scope ▪ Maximizing true cloud and
Engagement options: BPO benefits
Single-customer (for example RISE with SAP) ▪ Provides application, implementation,
▪ Deal-by-deal engagement management, and support services
▪ Partner managed cloud approved product list (APL)
▪ Offers services that can vary from prime
Multi-customer (for selected solutions only, for example contracting and implementing up to full
SAP SuccessFactors, SAP Ariba, SAP Fieldglass, SAP business process outsourcing (BPO)
Enable Now)
▪ Business case, solution scope ▪ Manages integration with customer’s own
▪ Program / frame agreement (BOM, commercial and solutions and other third-party solutions for
legal terms) seamless support
Order forms are for named end customers in both cases

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Why do partner managed cloud providers and end customers benefit from
partner managed cloud?
Leverage your IP and GTM capabilities Unique, pre-built industry or LoB solution

Create new long-term customer relationships One transaction with a single provider
(One-stop shop)

Expand solution offering/ revenue

Fully-managed services by trusted
partner managed cloud provider (OPEX)

Transform towards cloud

Partner managed End customer Consume desired software as service
cloud provider benefits and/or BPO services
benefits

Differentiate and beat commoditization threat Customizable SLA with tailor-made services

Build repetitive model/ platform (market attack) Rapid deployment, low risk

… and for SAP: Partner managed cloud providers increase the overall competitiveness of SAP in the cloud world
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Top 10: Why Partners Should Choose Partner Managed Cloud (IDC)

Tap into a huge market Benefit from partnership to Accelerate transition to A robust route to growth Differentiate with industry-
potential leverage massive economic cloud relevant services
opportunities Accelerate sales cycles,
Drive migration and increase revenue, and reduce Create industry-specific
The worldwide ITO / partner Address the global outsourcing modernization of enterprise IT costs with innovations, content offerings by extending SAP
managed cloud service market market with a combined offering to SAP cloud as part of services, accelerators, and cloud solutions with appropriate
is valued at around $96 of SAP cloud solutions and managed cloud services. reusable IP assets to provide industry-specific IP and
billion*in 2020 – with a clear managed services to your end end-to-end solutions. services.
shift towards managed cloud customers.
services.

Allow your customers a Simplify engagement for Manage increasingly Include business services RISE with SAP to renew and
faster time to market your end customers complex environments in key horizontal functions extend revenue

Develop out-of-the-box content, One contract for end customers Build automation tools to Combine business process The partner managed cloud
faster implementation, fully – cloud solution, services, and simplify customer processes outsourcing (BPO) services model is now available for RISE
managed service, and support – on a subscription- while managing a complex with LoB solutions such as SAP with SAP to help transition your
accelerated transformation to based pricing, using business- multi-cloud / hybrid SuccessFactors, SAP Ariba, customers to the latest cloud
the cloud. relevant metric. environment to exploit SAP Enable Now, SAP technologies from SAP.
emerging opportunities. Fieldglass.
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*Source: IDC Reports: Worldwide and U.S. IT Outsourcing Services Forecast, 2020–2025 (April 2021, IDC #US46370221 )
Partner managed cloud examples

SAP S/4HANA Cloud SAP Ariba/ SAP Fieldglass SAP Enable Now
For franchisers, suppliers, public, For procurement and sourcing Part of business transformation
healthcare, higher education services services
More than

1,000
products possible!

SAP governance, risk, and Analytics as a Service Business Process Outsourcing

compliance (GRC) solutions / (BPOs) and shared services
fraud management For example: Treasury, financials
SAP SuccessFactors ECP/ Payroll, HR,
Suppliers, manufacturing import/export KPI check

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Useful links for partner managed cloud

Marketing training workshops

Partner managed cloud communications and naming usage guidelines
Digital Marketing Campaign Hub
PMC Partner Press Release templates and guidelines
Expand your brand
PR and social media content

Marketing Demand
Revenue
awareness generation

Tools to drive your profitability

Available on the SAP Partner Portal

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 Value of RISE with SAP with partner managed cloud

Value for:

Customer ▪ One contract incl. flex. pricing measures for SAP

Regular RISE with SAP Additional RISE with SAP and non-SAP offerings
Today on ▪ Turnkey offering of run services & subscription
via partner incl. migration, industry
SAP ECC services services ▪ Managed migration & optimization to RISE with
managed cloud value, and BPO
SAP
▪ Extend existing partner relationship/services
Advisory & Transformation ▪ Trustworthy long term commercial model
▪ Innovation from SAP complemented by partner
BPO Services

Partner ▪ Long term, predicable rev. stream from IB

Migration / Transition paid ▪ Full business model design flexibility

One contract to client / Partner revenue

as subscription
Advisory & Transformation ▪ Renew and extend client revenue with RISE with
One contract to client / Partner revenue

SAP offering
▪ Maintain broad account control
Application management
Application management services & other high value
▪ Manage migration of installed base to RISE with
services & other high value SAP
partner managed cloud with SAP

partner managed cloud with SAP

managed services
managed services
▪ Enable differentiated and bundled RISE with SAP
Partner Revenue

Partner IP on SAP BTP

offerings
Partner
IT – Outsourcing and / or Partner IP on SAP BTP
holistic SAP application Hybrid Landscape TMS
SAP ▪ Partners to create move opportunities
management services for
SAP ECC
Hybrid Landscape TMS ▪ Expand reach through partner-led RISE with SAP
Partner contracted

Partner contracted
offerings
RISE with SAP & industry ▪ Increase number of predicable RISE with SAP
RISE with SAP software cloud software usage
usage journeys
▪ Tailored LACE* ownership by partner to drive
scale
SAP ECC Maintenance Basic TMS Basic TMS
to SAP ▪ Maintain SAP margins, with low cost of sales
Hyperscaler
Hyperscaler
▪ Lock in long term RISE with SAP relationship
For illustrative purposes only
* Land, Adopt, Consume, Expand (LACE)
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Rules of engagement for targeting joint installed base with GSSPs*

What we expect from partner What SAP will do to support model

▪ Agree on defined business plan – SAP and Partner agree on approach up- ▪ Provide partner managed cloud SPOC persons to work with partner on
front (nomination and SAP approval process); customer preference joint opportunities
respected ▪ Assign SAP PSE (partner success executive) to partner managed cloud
▪ Confirm intent to full RISE with SAP adoption including SAP Business partner (depending on deal) and provide partner managed cloud partner
Technology Platform (SAP BTP) and SAP Business Network CEE enablement and support (as part of PE&X community)
▪ Drive industry cloud portfolio expansion ▪ Assign CDM (customer delivery manager) to allow seamless engagement
with SAP cloud delivery
▪ Plan for innovation adoption
(clean core preferred, stimulate cross-sell, and more)
▪ Assign CEE for alignment with SAP
▪ Collaborate on client roadmap / strategy with SAP

*Global Strategic Services Partners (GSSP)

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Opportunity Identification and Qualification

For initiative: Accelerate the move of joint installed base

to the Intelligent Enterprise

PBMs and partner managed cloud SPOCs will support GSSP engagement

▪ Partner has 2+ years open IT outsourcing / holistic application management services

delivery to SAP ECC client and is incumbent/ preferred partner to client
▪ Client has not indicated to move to RISE with SAP before presenting the RISE with SAP
via partner managed cloud proposition
▪ Today client may wait until end (-1 year) of ITO/ AMS contract and go for RFP or similar
▪ Client runs SAP ECC versions
▪ Client has maintenance contract
▪ Partner nominates customers to partner managed cloud SPOC
▪ Important: We would like the partner to create an opportunity (no inflight deals)
▪ We are interested to package higher number of similar accounts into a program that may
see additional benefits (depending on volume, business case)

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Next steps…
Call to Action

▪ Review approach within your organization – if question please reach out to SPOC
▪ Provide 3 real examples – with these examples we will provide commercial offer to
support a RISE with SAP deal via partner managed cloud (per SAP checklist: e. g. client
ECC BOM, installed licenses to be converted, users, future state sizing information)
▪ SAP will return with offer that will allow partner to calculate his offer to client
▪ If overall commercial model is positive, please sign MOU and provide candidates as
stated in the MOU
▪ SAP will validate candidates / Rationalized with SAP data on SAP S/4HANA related active
pursuits or delivery projects
▪ Review Account + partner alignment with SAP sales stakeholders (RISE with SAP and
GAD/AE)
▪ SAP will confirm sourced opportunity or will reject with reason
▪ SAP will revisit process on regular basis
▪ Contact your PBM Client

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Additional charts – Use as Needed
Differentiated value of partner managed cloud
Examples of scenarios where provider create unique value to their customers

Partner managed cloud/ BPO provider contributions Value to customers

SAP S/4HANA industry cloud solutions enhanced by provider’s IP and business transformation services
▪ Industry cloud solutions from SAP localized by provider’s local industry knowledge and local solutions
▪ Better align with local business requirements
▪ SAP BTP provides a robust platform for delivering innovations to support the transformation seamlessly
▪ Enhanced insight by local benchmark data
▪ Provider includes external and benchmark data (For example: local market and trade data, industry benchmark) to
▪ Faster on-boarding and benefit realization
enrich industry cloud
▪ Successful business transformation
▪ Business consulting services added onto industry cloud to help customer’s business transformation

SAP LoB Application Cloud combined with provider’s BPO services

▪ Provider’s BPO services on SAP LoB cloud solutions including SAP SuccessFactors, SAP Ariba, SAP Fieldglass, ▪ Lower business process operational costs
SAP Customer Experience, SAP Central Finance, SAP Enable now, and more. ▪ Higher quality of business processes, for example faster closing,
▪ BPO services enable customer’s operational improvements accurate and timely reporting

SAP S/4HANA Cloud integration with customer’s own systems

▪ Provider integrate SAP S/4HANA Cloud with customer’s own systems on SAP Business Technology Platform for
seamless IT delivery ▪ Overall systems integrated in a seamless way
▪ Provider’s understanding of customer’s systems and business ▪ Better support by trusted provider with SAP Services and Support
▪ Decreasing software obsolescence/ downtime with latest versions ▪ Lower risk
▪ Increasing flexibility to adjust innovation portfolio in time

Combine multiple solutions and services as one complete business enabling offering
▪ Multiple SAP solutions to be managed by partner managed cloud/ BPO provider, for example: SAP S/4HANA Cloud,
SAP Ariba, SAP Analytics Cloud, SAP SuccessFactors, SAP Enable now, and on premise as one integrated ▪ Better usage of SAP solutions
services offering ▪ Fully aligned with customer’s business needs
▪ Option to include BPO services ▪ Seamless support from provider aligned with SAP expertise
▪ Best configuration provided by provider for maximized benefits
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Strategic partnering opportunity
What could providers include in their partner managed cloud offerings?

Customer – Mitigate impediments and risks to RISE with SAP adoption and cloud transformation -- Legacy applications, integrations, customizations, and vendor
commitments are an impediment to RISE with SAP adoption and unlocking the value of the cloud. De-risk RISE with SAP implementation and adoption with providers
offerings.
Strategic business plan focus – Accelerate the migration of our joint installed base to RISE with SAP with a holistic offering.
Provider – Build next-gen SAP Cloud practice and revenue streams with RISE with SAP. Deliver accelerated client value building long-term relationships.

Operate
RISE with SAP RISE with SAP Innovation and
Cloud Business integrated estate
migration operate integration
transformation transformation with RISE with
offering agreement services
SAP

Provide existing clients Develop a transformation Accelerate clients Integrate RISE with SAP Build and manage Leverage RISE with SAP
with an accelerated roadmap built on migration to RISE with into a broader “full integrations and as the foundation of the
journey to the cloud with business process SAP and business value service” set of offerings. innovations with RISE Intelligent Enterprise to
RISE with SAP leveraging intelligence (BPI) tools realization leveraging Expand and tailor existing with SAP on SAP BTP to orchestrate services and
the broader value of the and insights. Provide automated tools and operate agreements to enable business and integrations across the
RISE with SAP portfolio. ongoing services to drive configurations for RISE drive the adoption, industry-specific clients heterogeneous
Leverage existing continuous improvement, with SAP as a bundled expansion, and processes on SAP and landscape.
relationships and business transformation, service. De-risk customer optimization of RISE with third-party solutions.
restructure current and adoption. Industry move to RISE with SAP SAP across the business Develop partner IP and
operate agreements to transformation and best with proven and ensuring ongoing offerings on SAP BTP.
RISE with SAP. practices. Drive the automated tools and best adoption of new
journey to the clean core. practices. functionality as released.

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We stand committed not to leave any customer behind
on their journey to becoming an intelligent enterprise

WHAT

RISE with SAP

is a partner-focused offering that
provides Business Transformation as
a Service with key components (cloud
solutions, platform, tools).

Taken together, SAP & Partners

offer customers a unique and
compelling path forward to becoming an
intelligent enterprise.
Moving our customers
to the cloud.
is a program that complements RISE
with SAP by offering tailored guidance
and expertise for a migration from
legacy systems to intelligent
technologies.

SAP One Movement

WHY & HOW

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RISE with SAP and SAP One Movement
Partners have a crucial role in customer business transformation driven by RISE with SAP

WHAT

RISE with SAP

Applications Platform Network Infrastructure
SAP S/4HANA SAP Business SAP Business Provider of
Cloud Technology Network Choice
Platform (Starter Package)
(CPEA Credits)

Business Process Intelligence Tools

with Business Process Redesign for Migration, Optimization,
and Innovation

Services, Assets & Additional Tools from SAP & Partners

Align on vision & Build Plan the path Deliver business

strategy the case forward value

SAP One Movement

WHY & HOW

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