SAP, HP Team On Hosting

The business applications giant, along with longtime hosting cohort Hewlett-Packard, last week began delivering four domain-specific versions of its mySAP All-in-One suite as a managed service. SAP initially will target midmarket companies in the oil and gas fuel distribution, consumer products/food, high-tech device and technical service provider industries.

To become an All-in-One solution provider, partners must create at least one niche-oriented enhancement to a suite. SAP reseller and implementation partner itelligence, for example, wrote the consumer products version for midmarket manufacturers and distributors of fresh food, such as meat, poultry, seafood and baked goods. Reflecting the unique requirements of such companies, the software manages dual measurement units, such as pounds and packages, for sales orders and billing; monitors lot histories; and tracks compliance with national food safety regulations.

"We are the first partner with SAP and HP in this go-to-market strategy," said Steve Niesman, president and CEO for the U.S. operations of itelligence, Westchester, Ill. "We wrote the solution and designed the delivery methodology to speed up implementation. And we will be the implementation partner for midmarket companies above $200 million in revenue."

Gary Fromer, SAP's senior vice president of SMB and Hosting, said both HP and SAP will compensate partners that sell the managed service. HP will offer a onetime referral fee, while SAP will pay a recurring revenue stream. "All of the All-in-One partners who are willing to be trained, which we will provide for free, can sell the services," he said.

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Fromer said SAP, Newton Square, Pa., is looking for HP partners that already have experience in the targeted verticals.

"We are looking to create a model for the partner to earn incremental margins and royalties," said David Booth, senior vice president of HP Americas' Customer Solutions Group, Palo Alto, Calif.

Each vertical edition is priced at $325 per user per month, including software, implementation, end-user training, support, functional management and application management from SAP. HP's contribution includes operations, infrastructure hosting, storage on demand, business recovery and security services. That cost assumes customers finance the managed service through the SAP Financing Program.