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Ralf Meyer: Partnering with SAP Vol. 1                              Ralf Meyer: Partnering with SAP Vol. 1



           Extra Chapter 3.1
        “SAP® Ecosystem Hub”
                                                            Impressum
          for “book buyers of                               Herstellung und Verlag für Partnering with SAP: Books on De-
                                                            mand GmbH, Norderstedt.
                                                            Cover design: Goetz Burger, www.plan33.de
                                                            ISBN-13: 9783837060553

                                                            Disclaimer
                                                            SAP, R/3, mySAP, xApps, SAP NetWeaver, Duet, Business By-
                                                            Design, PartnerEdge, and other SAP products and services men-
                                                            tioned in this book as well as their respective logos are trade-
                                                            marks or registered trademarks of SAP AG in Germany and in
                                                            several other countries. Other company or product names men-
                                                            tioned in this book are trademarks or registered trademarks of the
                                                            respective owners. The information contained in this book serves
                                                            informational purposes only. Synomic and the authors assume no
                                                            responsibility for errors or omissions in this document and do not
                                                            warrant the accuracy or completeness of any information, text,
                                                            graphics, links, or other items. This book is provided without war-
                                                            ranty of any kind, either express or implied. Synomic and the au-
                                                            thors shall have no liability for damages of any kind that may re-
                                                            sult from the use of this information. The authors also have no
                                                            control over information that you may access through the use of
                                                            via web links contained in these materials and do not endorse
                                                            your use of Web pages, nor do they provide any warranty what-
                                                            soever relating to third-party web pages.


           Partnering with SAP Vol. 1                       Copyright © 2008 Synomic GmbH
                                                            All rights reserved. No part of this publication may be reproduced
                   Ralf Meyer                               or distributed in any form or by any means, or stored in a data-
     Business models for software companies                 base or Internet solution, without the prior written permission of
            ISBN-13: 9783837060553                          the publisher.




SAP EcoHub                   © 2008 Synomic GmbH            SAP EcoHub                            © 2008 Synomic GmbH
                                                       1                                                                      2
Ralf Meyer: Partnering with SAP Vol. 1                            Ralf Meyer: Partnering with SAP Vol. 1

1.1. Ecosystem Hub                                                    Customer ownership and account control: full owner-
                                                                      ship and customer control by you. SAP forwards the
Chapter Summary                                                       customer request for buying to you.
SAP offers an online solution marketplace with the opportu-           Go-to-market: SAP offers the opportunity to advertise,
nity to advertise partner solutions exactly where customers           no additional go-to-market attached.
are looking for SAP´s solutions, on the SAP ecosystem hub             Marketing support: No marketing support except adver-
website http://ecohub.sap.com.                                        tising space.
1.1.1. Definition of Ecosystem Hub                                    Quality Assurance: You test your software.
The Ecosystem Hub is an online marketplace for advertising            Support: Support is done by you for your solutions.
partner solutions and solutions resold by SAP. Besides the        Ecosystem Hub is a global partnership model. You get ad-
solution name, partners can include collaterals, success sto-     vertising     space     on     SAP´s     global      website
ries and whitepapers on this site.                                http://ecohub.sap.com. Customers are able to browse SAP´s
Customers can look up and select partner solutions on the         solution offering and can find your advertised solution, too.
Ecosystem Hub website. Once a customer is interested in a         Customers and partners can also attach ratings and reviews
solution, the customer enters his contact data and SAP for-       to the advertised products.
ward this contact data to the partner.                            SAP´s goal for this partnership model is maximizing the
Online reviews and ratings of the solutions and links to the      revenue from platform user licenses and maximizing the
SAP developer network information about the solutions             platform adoption of SAP´s NetWeaver platform. Platform
complete the information provided on the Ecosystem Hub.           User Licenses are licenses sold by SAP to customers when
                                                                  customers run partner solutions on the SAP NetWeaver plat-
Ecosystem Hub Participation at SAP means the following:
                                                                  form.
    Shipment of products: Partner ships products.
                                                                  The following figure shows the services and payments flow-
    Pricing: Partner determines pricing                           ing for SAP Ecosystem Hub. SAP customers pay a license
    Branding: partner-branded only, some co-branded SAP           and maintenance fee for the software sold by the partner.
    resellers show up on the site, too                            The SAP partner pays fees for certification, for membership
                                                                  in the SAP PartnerEdge Partner program and for advertising
    Intellectual Property (IP): SAP keeps its IP, you keep        on the SAP Ecosystem Hub.
    your IP.
    Booking revenue: Selling on your paper.

SAP EcoHub                         © 2008 Synomic GmbH            SAP EcoHub                         © 2008 Synomic GmbH
                                                             3                                                                 4
Ralf Meyer: Partnering with SAP Vol. 1                             Ralf Meyer: Partnering with SAP Vol. 1

                                                                                 SAP Partner Edge membership
   Ecosystem Hub
                                                                                 SAP Certified solution
                                                                                 See the chapter on Certified Solutions for more information.
                                       Software
                                       Partners
                                                                                 Platform User License Certification
                                       Provide                                   To get a Platform User License Certification, you have to
                                       Eco Hub
                                                                                 prove that your solution is certified on a selection of inter-
                                SAP
                                      Sell platform
                                                      Customers                  faces. The simplest way to get this certification when your
                                      user licenses                              solution calls SAP´s Enterprise Services.

     Products,                                                                   Solution fit
     Assets or
                                                                  Payments
     Services                                                                    Your solution covers a whitespace that is important for SAP
                                                                                 customers to cover. Your counterparts in SAP business de-
                                                                                 velopment will ask for this, so be prepared to show that your
Copyright © 2008 Synomic GmbH

Figure 1: Ecosystem Hub                                                          solution is a great complement to SAP´s solution.

1.1.2. Requirements for Ecosystem Hub                                            Non-competitive solution and behavior

The following key requirements qualify a partner solution to                     It is obvious that your solution resold by SAP should be
become a Ecosystem Hub for SAP:                                                  non-competitive. But the rest of your product portfolio and
                                                                                 roadmap will also be scanned carefully for competitive of-
       SAP PartnerEdge membership,                                               ferings. If there is a competitive offering, SAP sales will be
       Partner has a SAP Certified Solution,                                     very careful in Ecosystem Hubing your solution and that is
                                                                                 not good for the overall revenue.
       Partner has Platform User License Certification
                                                                                 The behavior of your sales force is also key for a successful
       EcoHub Participation Agreement signed.                                    cooperation with SAP. Make it very clear to your sales force
For you as a partner, the solution has to have a significant                     that they should avoid competitive behavior with SAP sales.
revenue potential in the SAP customer space. SAP will also
watch if you have a non-competitive solution and show also
non-competitive behavior.


SAP EcoHub                                            © 2008 Synomic GmbH        SAP EcoHub                         © 2008 Synomic GmbH
                                                                             5                                                                6
Ralf Meyer: Partnering with SAP Vol. 1                          Ralf Meyer: Partnering with SAP Vol. 1

1.1.3. Process to get a Ecosystem Hub part-                          Simplicity in packaging and licensing. Package and
       nership                                                       license your solution in three T-shirt sizes, e.g. for
                                                                     200.000 Euro, 500.000 Euro, 1 Mio Euro.
The process has several steps:
                                                                     Non-competitive solution portfolio and no channel
    Join the PartnerEdge partner program by joining on the           conflicts.
    website http://www.partnerwithsap.com;
    Certify your solution, see separate section on certified      What to do
    solutions in this book;                                          Make sure there are high revenue expectations for your
    Get Platform User License certification                          sales into the SAP customer base and you have refer-
                                                                     ences of SAP customers.
    Get in contact with the SAP Ecosystem Hub Team via
    email to EcoHub_Partners@sap.com.                                Make sure there is solution fit with SAP product portfo-
                                                                     lio and your entry price tag is high.
    Sign the Ecosystem Hub Participation Agreement
                                                                     Follow the simple process laid out on the Ecosystem
1.1.4. Survival tips from existing Ecosystem                         Hub website
       Hub partners                                                        o Join the PartnerEdge partner program by
                                                                             joining on the website
1.1.5. Cheat sheet Ecosystem Hub                                             http://www.partnerwithsap.com ;
Key Requirements                                                           o Certify your solution, see separate section on
                                                                             certified solutions in this book;
    SAP Partner Edge membership must be in place. If
    you don´t have a SAP Partner Edge Partnership yet,                     o Get in contact with the SAP Ecosystem Hub
    you have to apply for it. Fee will be about 3400 US dol-                 Team via email to
    lars.                                                                    EcoHub_Partners@sap.com
    Platform User License Certification: entry price tag                   o Sign the Ecosystem Hub Participation
    should be between 100.000 Euro and 150.000 Euro.                         Agreement
    SAP sales are used to high price tags and motivation of
    SAP sales requires high entry price tags.                     What to expect
                                                                     If you are missing one of the key requirements above, it
                                                                     will be impossible to convince SAP.


SAP EcoHub                         © 2008 Synomic GmbH            SAP EcoHub                       © 2008 Synomic GmbH
                                                             7                                                               8
Ralf Meyer: Partnering with SAP Vol. 1                              Ralf Meyer: Partnering with SAP Vol. 1

   Expect the overall process from initial contact to execu-
   tion by the SAP field organization to take about 1-2
   months if your solution is already certified, 3-6 months
   if your solution is not certified yet.

What to avoid
   Competitive solutions: if you have a competitive solu-        Please occasionally visit
   tion, it is questionable that customers will search for it    www.synomic.com/partnerbook
   on a SAP website.                                             for further updates and downloads.
What if SAP does not want to enroll you to Ecosys-
tem Hub?                                                         Your feedback is appreciated via email at
   Ask SAP for regional or local partnership programs.
                                                                 partnerbook@synomic.com
   Go for Endorsed Business Solution: a revenue share is
   better than no agreement with SAP.
   Go for Referral or reselling through partners or direct
   access to customers through partner consultants or
   through customer communities and SAP events.

What if SAP does not want to enroll you to Ecosys-
tem Hub?
   Ask SAP for regional or local partnership programs.           Copyright © 2008 Synomic GmbH
                                                                 All rights reserved. No part of this publication may be reproduced
   Go for Endorsed Business Solution: a revenue share is         or distributed in any form or by any means, or stored in a data-
   better than no agreement with SAP.                            base or Internet solution, without the prior written permission of
                                                                 the publisher.
   Go for Referral or reselling through partners or direct
   access to customers through partner consultants or
   through customer communities and SAP events.




SAP EcoHub                        © 2008 Synomic GmbH            SAP EcoHub                            © 2008 Synomic GmbH
                                                            9                                                                    10

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Example Chapter SAP Ecohub

  • 1. Ralf Meyer: Partnering with SAP Vol. 1 Ralf Meyer: Partnering with SAP Vol. 1 Extra Chapter 3.1 “SAP® Ecosystem Hub” Impressum for “book buyers of Herstellung und Verlag für Partnering with SAP: Books on De- mand GmbH, Norderstedt. Cover design: Goetz Burger, www.plan33.de ISBN-13: 9783837060553 Disclaimer SAP, R/3, mySAP, xApps, SAP NetWeaver, Duet, Business By- Design, PartnerEdge, and other SAP products and services men- tioned in this book as well as their respective logos are trade- marks or registered trademarks of SAP AG in Germany and in several other countries. Other company or product names men- tioned in this book are trademarks or registered trademarks of the respective owners. The information contained in this book serves informational purposes only. Synomic and the authors assume no responsibility for errors or omissions in this document and do not warrant the accuracy or completeness of any information, text, graphics, links, or other items. This book is provided without war- ranty of any kind, either express or implied. Synomic and the au- thors shall have no liability for damages of any kind that may re- sult from the use of this information. The authors also have no control over information that you may access through the use of via web links contained in these materials and do not endorse your use of Web pages, nor do they provide any warranty what- soever relating to third-party web pages. Partnering with SAP Vol. 1 Copyright © 2008 Synomic GmbH All rights reserved. No part of this publication may be reproduced Ralf Meyer or distributed in any form or by any means, or stored in a data- Business models for software companies base or Internet solution, without the prior written permission of ISBN-13: 9783837060553 the publisher. SAP EcoHub © 2008 Synomic GmbH SAP EcoHub © 2008 Synomic GmbH 1 2
  • 2. Ralf Meyer: Partnering with SAP Vol. 1 Ralf Meyer: Partnering with SAP Vol. 1 1.1. Ecosystem Hub Customer ownership and account control: full owner- ship and customer control by you. SAP forwards the Chapter Summary customer request for buying to you. SAP offers an online solution marketplace with the opportu- Go-to-market: SAP offers the opportunity to advertise, nity to advertise partner solutions exactly where customers no additional go-to-market attached. are looking for SAP´s solutions, on the SAP ecosystem hub Marketing support: No marketing support except adver- website http://ecohub.sap.com. tising space. 1.1.1. Definition of Ecosystem Hub Quality Assurance: You test your software. The Ecosystem Hub is an online marketplace for advertising Support: Support is done by you for your solutions. partner solutions and solutions resold by SAP. Besides the Ecosystem Hub is a global partnership model. You get ad- solution name, partners can include collaterals, success sto- vertising space on SAP´s global website ries and whitepapers on this site. http://ecohub.sap.com. Customers are able to browse SAP´s Customers can look up and select partner solutions on the solution offering and can find your advertised solution, too. Ecosystem Hub website. Once a customer is interested in a Customers and partners can also attach ratings and reviews solution, the customer enters his contact data and SAP for- to the advertised products. ward this contact data to the partner. SAP´s goal for this partnership model is maximizing the Online reviews and ratings of the solutions and links to the revenue from platform user licenses and maximizing the SAP developer network information about the solutions platform adoption of SAP´s NetWeaver platform. Platform complete the information provided on the Ecosystem Hub. User Licenses are licenses sold by SAP to customers when customers run partner solutions on the SAP NetWeaver plat- Ecosystem Hub Participation at SAP means the following: form. Shipment of products: Partner ships products. The following figure shows the services and payments flow- Pricing: Partner determines pricing ing for SAP Ecosystem Hub. SAP customers pay a license Branding: partner-branded only, some co-branded SAP and maintenance fee for the software sold by the partner. resellers show up on the site, too The SAP partner pays fees for certification, for membership in the SAP PartnerEdge Partner program and for advertising Intellectual Property (IP): SAP keeps its IP, you keep on the SAP Ecosystem Hub. your IP. Booking revenue: Selling on your paper. SAP EcoHub © 2008 Synomic GmbH SAP EcoHub © 2008 Synomic GmbH 3 4
  • 3. Ralf Meyer: Partnering with SAP Vol. 1 Ralf Meyer: Partnering with SAP Vol. 1 SAP Partner Edge membership Ecosystem Hub SAP Certified solution See the chapter on Certified Solutions for more information. Software Partners Platform User License Certification Provide To get a Platform User License Certification, you have to Eco Hub prove that your solution is certified on a selection of inter- SAP Sell platform Customers faces. The simplest way to get this certification when your user licenses solution calls SAP´s Enterprise Services. Products, Solution fit Assets or Payments Services Your solution covers a whitespace that is important for SAP customers to cover. Your counterparts in SAP business de- velopment will ask for this, so be prepared to show that your Copyright © 2008 Synomic GmbH Figure 1: Ecosystem Hub solution is a great complement to SAP´s solution. 1.1.2. Requirements for Ecosystem Hub Non-competitive solution and behavior The following key requirements qualify a partner solution to It is obvious that your solution resold by SAP should be become a Ecosystem Hub for SAP: non-competitive. But the rest of your product portfolio and roadmap will also be scanned carefully for competitive of- SAP PartnerEdge membership, ferings. If there is a competitive offering, SAP sales will be Partner has a SAP Certified Solution, very careful in Ecosystem Hubing your solution and that is not good for the overall revenue. Partner has Platform User License Certification The behavior of your sales force is also key for a successful EcoHub Participation Agreement signed. cooperation with SAP. Make it very clear to your sales force For you as a partner, the solution has to have a significant that they should avoid competitive behavior with SAP sales. revenue potential in the SAP customer space. SAP will also watch if you have a non-competitive solution and show also non-competitive behavior. SAP EcoHub © 2008 Synomic GmbH SAP EcoHub © 2008 Synomic GmbH 5 6
  • 4. Ralf Meyer: Partnering with SAP Vol. 1 Ralf Meyer: Partnering with SAP Vol. 1 1.1.3. Process to get a Ecosystem Hub part- Simplicity in packaging and licensing. Package and nership license your solution in three T-shirt sizes, e.g. for 200.000 Euro, 500.000 Euro, 1 Mio Euro. The process has several steps: Non-competitive solution portfolio and no channel Join the PartnerEdge partner program by joining on the conflicts. website http://www.partnerwithsap.com; Certify your solution, see separate section on certified What to do solutions in this book; Make sure there are high revenue expectations for your Get Platform User License certification sales into the SAP customer base and you have refer- ences of SAP customers. Get in contact with the SAP Ecosystem Hub Team via email to EcoHub_Partners@sap.com. Make sure there is solution fit with SAP product portfo- lio and your entry price tag is high. Sign the Ecosystem Hub Participation Agreement Follow the simple process laid out on the Ecosystem 1.1.4. Survival tips from existing Ecosystem Hub website Hub partners o Join the PartnerEdge partner program by joining on the website 1.1.5. Cheat sheet Ecosystem Hub http://www.partnerwithsap.com ; Key Requirements o Certify your solution, see separate section on certified solutions in this book; SAP Partner Edge membership must be in place. If you don´t have a SAP Partner Edge Partnership yet, o Get in contact with the SAP Ecosystem Hub you have to apply for it. Fee will be about 3400 US dol- Team via email to lars. EcoHub_Partners@sap.com Platform User License Certification: entry price tag o Sign the Ecosystem Hub Participation should be between 100.000 Euro and 150.000 Euro. Agreement SAP sales are used to high price tags and motivation of SAP sales requires high entry price tags. What to expect If you are missing one of the key requirements above, it will be impossible to convince SAP. SAP EcoHub © 2008 Synomic GmbH SAP EcoHub © 2008 Synomic GmbH 7 8
  • 5. Ralf Meyer: Partnering with SAP Vol. 1 Ralf Meyer: Partnering with SAP Vol. 1 Expect the overall process from initial contact to execu- tion by the SAP field organization to take about 1-2 months if your solution is already certified, 3-6 months if your solution is not certified yet. What to avoid Competitive solutions: if you have a competitive solu- Please occasionally visit tion, it is questionable that customers will search for it www.synomic.com/partnerbook on a SAP website. for further updates and downloads. What if SAP does not want to enroll you to Ecosys- tem Hub? Your feedback is appreciated via email at Ask SAP for regional or local partnership programs. partnerbook@synomic.com Go for Endorsed Business Solution: a revenue share is better than no agreement with SAP. Go for Referral or reselling through partners or direct access to customers through partner consultants or through customer communities and SAP events. What if SAP does not want to enroll you to Ecosys- tem Hub? Ask SAP for regional or local partnership programs. Copyright © 2008 Synomic GmbH All rights reserved. No part of this publication may be reproduced Go for Endorsed Business Solution: a revenue share is or distributed in any form or by any means, or stored in a data- better than no agreement with SAP. base or Internet solution, without the prior written permission of the publisher. Go for Referral or reselling through partners or direct access to customers through partner consultants or through customer communities and SAP events. SAP EcoHub © 2008 Synomic GmbH SAP EcoHub © 2008 Synomic GmbH 9 10