Vendor claims that channel sales have increased since giving partners access to higher-value accounts
SAP aims to generate half of its SME sales from indirect business by the end of 2007, the vendor has told CRN.
The announcement follows the German software vendor’s recent decision to increase the value of channel sales by allowing partners to compete for accounts worth up to £750m (CRN, 6 February).
Donal Madden, channel head at SAP UK, told CRN that the firm had already witnessed two to three large-scale deals that would not have been possible if it had not increased the partner accounts barrier. Its aim of half of its sales being indirect by 2007 was an evolution of that decision, he added.
“Capacity and quality is the goal with our channel, but we don’t want to overpopulate in any space. Half of our sales is both a global and a UK figure. Achievement of the figure will be quicker for some countries than others,” he said.
Madden claimed that since allowing partners access to higher-value accounts this year, it had also witnessed a 20 to 30 per cent increase in indirectly generated sales. Madden was also confident that by the end of this year SAP could increase that figure to 40 per cent.
SAP’s sales staff are currently paid an ‘accelerator’, much like a bonus, for sales that they put through the channel. Madden claimed this would also help to encourage more channel-based sales.
“The quicker SAP sales people reach their quota, the higher their commission. So by embracing our partner model they can achieve their quotas faster,” Madden claimed.
Ian Caswell, managing director of SAP VAR Sapphire, said: “SAP recognises that new sales will come from working with the channel. It is keen to get its direct salesforce working with the channel, especially on very large value sales.”
SAP aims to generate half of its SME sales from indirect business by the end of 2007, the vendor has told CRN.
The announcement follows the German software vendor’s recent decision to increase the value of channel sales by allowing partners to compete for accounts worth up to £750m (CRN, 6 February).
Donal Madden, channel head at SAP UK, told CRN that the firm had already witnessed two to three large-scale deals that would not have been possible if it had not increased the partner accounts barrier. Its aim of half of its sales being indirect by 2007 was an evolution of that decision, he added.
“Capacity and quality is the goal with our channel, but we don’t want to overpopulate in any space. Half of our sales is both a global and a UK figure. Achievement of the figure will be quicker for some countries than others,” he said.
Madden claimed that since allowing partners access to higher-value accounts this year, it had also witnessed a 20 to 30 per cent increase in indirectly generated sales. Madden was also confident that by the end of this year SAP could increase that figure to 40 per cent.
SAP’s sales staff are currently paid an ‘accelerator’, much like a bonus, for sales that they put through the channel. Madden claimed this would also help to encourage more channel-based sales.
“The quicker SAP sales people reach their quota, the higher their commission. So by embracing our partner model they can achieve their quotas faster,” Madden claimed.
Ian Caswell, managing director of SAP VAR Sapphire, said: “SAP recognises that new sales will come from working with the channel. It is keen to get its direct salesforce working with the channel, especially on very large value sales.”
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