The latest round of upcoming updates to the partner program incorporates new changes to align it closer to SAP’s cloud strategy.

Sell and Service partners were officially notified by email on October 9 of the upcoming changes to the partner program notification. The notice, which includes a variety of profound changes, strongly signals to the Sell and Service partners whose business models revolve around on-premise products. The notification stated that those partners will be strongly impacted if they continue to transact on-premise products as the partner program will only reward cloud-based motions moving forward.

The October 9 notification informed partners in the Sell and Service tracks about the fundamental changes that will start going into effect in phases starting in 2024:

• Simplification of the program requirements, alignment of the sell and service tracks by making competencies a core requirement.
•  Enhanced recognition of partner groups by allowing partners to meet the certified solution consultant requirements as a group.
• Updates to rules governing how value points are earned from on-premise sales and for SAP certifications.
•  Introduction of the Customer Success Guide, a new document that is an extension of the partner program guide highlighting key milestones and metrics to ensure an optimal post-sales experience for our joint customers.

Partners should be mindful of the various updates that will go into effect in 2024, and in particular, this upcoming change that is explained below which is important as it informs partners that by  transacting on-premise products they can no longer earn value points to maintain their current program levels.

Discontinuation of Value Points for On-Premise Products – Effective February 2024

In 2024, SAP is evolving the partner program levels to reflect the cloud-focused emphasis of SAP’s Customer Value Journey. In the first phase, SAP will stop awarding value points earned for on–premise solutions revenue (except for SAP Business One and countries without an SAP cloud portfolio).

Partners that are selling on-premise products will no longer be able to earn value points towards maintaining or attaining the gold level and its associated benefits. SAP encourages partners who want to continue their successful partnership with SAP’s cloud journey to adjust their business models accordingly.

– Existing gold level partners will not immediately be in danger of losing their gold level status since the changes are going into effect after the January program level-down evaluation, but they will not be able to help maintain their gold level via on-premise software sales after February 2024, as these transactions will no longer earn value points.

– Silver level partners will not be able to earn value points towards achieving gold level status by selling on-premise software after February 2024.

A Clear Signal to Partners About Upcoming New Program Levels Approach

The other big item that was communicated to partners is that SAP is sending a clear signal on the  directional change in which SAP will further evolve program levels and criteria. A key foundation in the new approach for partner recognition will be focused on achievements in alignment with SAP’s strategy and priorities for the cloud. That means that All partners will have to be reassessed to see where they are in the new leveling approach with the exception of SAP Business One partners and countries where there is no cloud portfolio available.

The upcoming redesigned levelling for the SAP PartnerEdge program focuses on cloud customer success-oriented metrics. There will be no path forward for a partner to achieve or maintain gold level, by selling or focusing on on-premise solutions. To reward cloud activities, market development funds earning will be restricted to cloud solutions reselling. Partners can still sell on-premise solutions but it will not be recognized for program level advancement.

Now is the time for partners who know that they will be affected to begin having conversations with your partner business manager to figure out the best route to shift to cloud products and to discover some best practices to help make a smooth and successful transition with the right coaching and guidance from SAP partner teams.

In 2024, SAP will provide partners with more clarity on the new program leveling approach and what partners should expect.