Tag: concur

Solution providers can cash in on the cloud

two-clouds-1385018843_27_contentfullwidthBeancounters at Wakefield Research have asked 250 senior executives at IT companies, value-added resellers and cloud providers  and found that 97 percent  believe offering cloud solutions will grow their business, and 96 percent  believe cloud-based solutions are also more profitable.

The survey was conducted on behalf of Concur and shows VARs that partner with cloud providers are more profitable. Writing on Concour’s blog Sachin Vora said that while it is clear that cloud-based solutions are integral to the future of business, the speed to market for new partners is key in a fast moving technology landscape.

“As channel partners evaluate and embrace available cloud solutions, some partnership models may have more advantages than others when it comes to building a cloud practice and being profitable. In a traditional partnership model like resell, channel partners are expected to build capability and competency across all aspects of a customer lifecycle – marketing, pre-sales, sales, implementation, support and post-sales services.”

While this model has long-term advantages, in the fast-moving cloud/SaaS space, the model limits partner’s expansion and adoption of new emerging technologies. In this scenario, a hybrid co-sell model helps the channel partner leverage their existing customer expertise without the immediate burden of investing in high-cost technical and post-sales capacity.

By implementing a co-sell referral model with a cloud-solution provider, partners can focus on being a trusted business advisor without major investment in technical sales resources.

Time spent on outside tasks such as training, marketing or sales is left to the solution provider so channel partners can focus on the success of their customers and on growing their business. In fact, according to the survey, every single company has expanded their client base since adopting a co-seller model, with average growth of 10 percent .

The survey also found that 77 percent of companies which offer a co-seller model have seen a direct or indirect profit increase since they began using it.

More than 90 percent of companies believe traditional reseller models require significantly more time and financial commitment than co-seller models.

Among those companies surveyed, the top reasons for adopting the co-seller model are:

To free up employees’ time to focus on other tasks (63 percent).

To use more highly skilled sales and marketing support than their company has on staff (59  percent).

To avoid having to train employees on a reseller model (53 percent).

To add more perceived value to their customer base (49 percent).

Knowing how quickly the market is shifting and leaning more and more on cloud, now is the time for partners to set themselves up for long-term success and start solving their customers’ problems today. Almost all companies (97 percent) know their customers struggle with accounts payable processes and expense management systems, and 90 per cent of  companies believe this is an untapped profitability source. By helping customers automate this workload, partners can drive immediate value by improving their bottom line, increasing profitability and simplifying an inefficient process.

In July of last year, Concur launched its co-sell referral channel program for partners interested in expanding their cloud practices with travel, expense and invoice cloud solutions. Since the launch, more than 300 partners have joined the programme.

SAP to stop buying companies

sapbeerAfter a spending spree that saw it spending over $7 billion software company Concur, German CRM giant appears to have decided enough is enough.

CEO Bill McDermott told a conference in Barcelona today that SAP is going to “step down” its acquisition efforts.

It had pledged to buy itself into a position of real power in the market, but according to a report by Reuters it was going to tuck itself into bed and that would probably put people to sleep.

SAP has seen some tough times in the recent past but McDermott believes it now has a business plan that will see it do reasonably well between 2015 and 2020.

SAP’s major competitors include Salesforce, Oracle and Workday and that market is becoming increasingly competitive.

McDermott’s strategy is to sell more of its products through the cloud, and that makes it just like every other vendor and therefore more vulnerable to competition too.

SAP agrees to Concur

Clouds in Oxford: pic Mike MageeSAP, the maker of expensive business software, which no one understands,  has written a cheque for expense management software maker Concur Technologies.

The all-stock deal is valued at $7.3 billion and will help SAP expand its esoteric presence in cloud computing.

SAP said in a statement it would offer $129 per share for the outfit and, while  this is 20 percent more than the September 17 closing price, it is lower than the $130.36 high Concur had at the beginning of the year.

SAP’s offer is rather generous. Concur is valued at $7.3 billion. Including debt, the offer represents an enterprise value of about $8.3 billion. However it will give SAP 12 million more cloud users.

In a statement SAP Chief Executive Bill McDermott said that buying Concur was consistent with SAPs focus on the business network.

Concur has 23,000 clients that include companies, governments and universities, with more than 25 million users of its business expense and travel management software and services.

More than a third of Concur users run SAP software and the southern-Germany based company expects to add Concur customers.

The Concur acquisition gives SAP deeper access to an area of corporate finance where it is not dominant. “SAP now has a business network that is 75 percent bigger than Amazon, eBay and Alibaba combined,” said CEO McDermott.

The company entered the cloud business quite late in 2012 after spending $7.7 billion on buying internet-based computing companies Ariba and SuccessFactors.

It wants to get 3 billion-3.5 billion euros in sales from cloud computing by 2017 out of a total of at least 22 billion. McDermott said that SAP will raise the outlook after completion of the Concur acquisition.