1. Manufacturing2. Communications 3. Resources Industries4. Professional Services 5. Retail6. Utilities7. Transportation Services8. Insurance9. Banking10. Wholesale

Top 10 Verticals for Cloud Opportunities

Growth Opportunities for SAP Partners

IDC Infographic sponsored by SAP

Cloud & Managed Services Market Opportunity

23.5% PUBLIC IT CLOUD COMPOUND ANNUAL GROWTH RATE 2013-20175X IT MARKET GROWTH

Shifting to the Third Platform & Cloud ComputingThe IT industry is witnessing a shift to whatIDC calls the Third Platform of computing.It is made up of four key areas:

90%FROM 2013 THROUGH 2020, 90% OF IT INDUSTRY GROWTH WILL BE DRIVEN BY 3RD PLATFORM TECHNOLOGIES THAT, TODAY, REPRESENT JUST 22% OF INFORMATION & COMMUNICATIONS TECHNOLOGY SPENDING.

CUSTOMERS ARE MOVING TO THE CLOUD

72% of cloud-using organizations desire to have a mature cloud strategy in 24 months.

53% of companies have adopted some form of cloud services.

80% of companies are at least educating themselves or evaluating the cloud approach for a speci�c workload.

From 2013 To 2020MOST OF IT “LIVING” IN THE CLOUD

25 TRILLION GIGABYTES OF NEW DATA GENERATED

All IDC research is © 2014 by IDC. All rights reserved.  All IDC mate-rials are licensed with IDC's permission and in no way does the use or publication of IDC research indicate IDC's endorsement of SAP’s products/or strategies.

CLOUD & MANAGED SERVICES

Worldwide 2014-2018 Cumulative SAP Partner Ecosystem Opportunity in Cloud & Managed Services

Global $33.6B

NorthAmerica $16.2B

EMEA $8.9B APJ

$4.1B

Latin America

$4.4B

SAP partners around the world will earn $33.6 billion (USD) in revenue in the next �ve years related to SAP’s Cloud & Managed Services products.

Top Drivers of Cloud Software

Top 3 IT challenges to execute a cloud strategy

Ability to monitor application performance

and adjust use of IT resources

E�ective use of automation, self

service and orchestration tools

Availability of robust self service

provisioning catalogue

2013

2020

SAP Cloud Ecosystem Global Opportunity

SAP Cloud Ecosystem Growth

$1 SAP CLOUD & MANAGED

SERVICES REVENUE

SAP PARTNER REVENUE

$3.53For every dollar of partner-generated

SAP cloud revenue in 2014, SAP partners earn an additional $3.53

Cloud Ecosystem Opportunities

Professional Services

40.3%Private cloud hardware,

software, support

27.9%Other Cloud

Services Resale

2.1%Co-sell other

services, add-ons

15.8%SAP Resale &Distribution

13.9%

PARTNERS MADE $1.1B OF REVENUE RELATED TO SAP CLOUD AND MANAGED SERVICES IN 2013.

THE PARTNER ECOSYSTEM IS FORECAST TO MAKE $11.3B OF REVENUE RELATED TO SAP CLOUD AND MANAGED SERVICES IN 2018.

2013 2014 2015 2016 2017 2018

$120B

$100B

$80B

$60B

$40B

$20B

0

58.6% CAGR

Ecos

yste

m R

even

ue

32%33%

34%40%

29%28%

27%24%

21%

IDC’s Key Cloud Services Attributes

✔ Elastic, use-based pricing✔ Standard UI technologies✔ Published service interface/API✔ Ubiquitous (authorized) network access

For IT OperationsReduce the size of IT

sta�, simplify and standardize IT infrastructure

For Financial & Accounting

Shift expenses from CAPEX to OPEX

For Other Groups

Faster access to newest functionality, improved

resource utilization, direct IT solutions control, faster

revenue generation

$100BBUSINESSES WILL SPEND

WORLDWIDE ON CLOUD DELIVERED IT SERVICES IN 2014

✔ Shared, standard service✔ Solution packaged✔ Self-service✔ Elastic resource scaling

What the Ecosystem is Saying“The Cloud is the future.” European Regional Systems Integrator

“Predictable, recurring revenue is highly regarded by investors. Industry incumbents have shown they are willing to pay healthy premiums for SaaS companies, creating an environment of robust M&A activity”. Venture Capitalist, Updata Partners

“I think that if we don't partner with our vendor to do this, then somebody else is going to take our customers.” North America VAR