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SAP Raises Royalty Fees, Makes Changes to Partnership Terms
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SAP SE (SAP - Free Report) has announced that it is raising its royalty fees collected from its largest software sales partners. The Walldorf-based software vendor intends to renegotiate with its partners to make more revenues from them.
Per a Bloomberg report, SAP will be providing the sales partners better access to its technology and support, leveraging strong sales momentum for its signature portfolios. This will enable it to increase the amount of money it receives from the partners who are likely to gain from that boost.
The latest move is part of SAP’s revamp plan that aims to offer easy access to its expansive line of tools to many software vendors. The company stated that it has decided to eliminate the 15% fee charged for entry to online marketplace.
However, SAP disclosed that this change is not equally applicable to all its partners. It has decided to include only a dozen software providers in the higher-tier level while including thousands of vendors in the lower-tier level. This will ensure easy access to SAP’s online marketplace for most of its partners.
Apart from that, SAP will strengthen its partnership with invitation-only companies wherein no royalty fees will be charged. It will be negotiating individually under each of such contracts.
SAP has established dominance over three of the most critical client demand areas, namely, efficient customer engagement, human experience management and interconnected commerce network, which support growth. The company follows an open ecosystem strategy, which enables it to better leverage its innovation capacity by extending it to partners as well. This drives better customer value based on respective domain expertise.
It is noteworthy that the SAP partner ecosystem is a collaborative, innovative and interactive network of partners, customers and individuals. Backed by the company’s extensive global relationships, customers have a wide range of providers and resources to choose from for software-related services and support.
In February, the company collaborated with BearingPoint to accelerate the development of carbon and environmental footprint solutions for customers to help them reach zero emissions. This partnership intends to integrate SAP solutions for sustainability and BearingPoint's long-standing in-depth experience with emission calculations in the market to create a new way to track and optimize a product’s environmental impact across its entire lifecycle.
Prior to that, in the same month, SAP partnered with International Business Machines to secure state-of-the-art technology and consulting expertise for customers, making it smoother to adopt a hybrid cloud infrastructure while moving crucial SAP workloads to the cloud.
Zacks Rank & Key Picks
SAP currently carries a Zacks Rank #3 (Hold). Shares of SAP have plunged 12.3% in the past year.
The Zacks Consensus Estimate for AMD’s first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of AMD have gained 26.4% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised a couple of cents upward to 89 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 55% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have declined 2.2% in the past year.
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SAP Raises Royalty Fees, Makes Changes to Partnership Terms
SAP SE (SAP - Free Report) has announced that it is raising its royalty fees collected from its largest software sales partners. The Walldorf-based software vendor intends to renegotiate with its partners to make more revenues from them.
Per a Bloomberg report, SAP will be providing the sales partners better access to its technology and support, leveraging strong sales momentum for its signature portfolios. This will enable it to increase the amount of money it receives from the partners who are likely to gain from that boost.
The latest move is part of SAP’s revamp plan that aims to offer easy access to its expansive line of tools to many software vendors. The company stated that it has decided to eliminate the 15% fee charged for entry to online marketplace.
SAP SE Price and Consensus
SAP SE price-consensus-chart | SAP SE Quote
However, SAP disclosed that this change is not equally applicable to all its partners. It has decided to include only a dozen software providers in the higher-tier level while including thousands of vendors in the lower-tier level. This will ensure easy access to SAP’s online marketplace for most of its partners.
Apart from that, SAP will strengthen its partnership with invitation-only companies wherein no royalty fees will be charged. It will be negotiating individually under each of such contracts.
SAP has established dominance over three of the most critical client demand areas, namely, efficient customer engagement, human experience management and interconnected commerce network, which support growth. The company follows an open ecosystem strategy, which enables it to better leverage its innovation capacity by extending it to partners as well. This drives better customer value based on respective domain expertise.
It is noteworthy that the SAP partner ecosystem is a collaborative, innovative and interactive network of partners, customers and individuals. Backed by the company’s extensive global relationships, customers have a wide range of providers and resources to choose from for software-related services and support.
In February, the company collaborated with BearingPoint to accelerate the development of carbon and environmental footprint solutions for customers to help them reach zero emissions. This partnership intends to integrate SAP solutions for sustainability and BearingPoint's long-standing in-depth experience with emission calculations in the market to create a new way to track and optimize a product’s environmental impact across its entire lifecycle.
Prior to that, in the same month, SAP partnered with International Business Machines to secure state-of-the-art technology and consulting expertise for customers, making it smoother to adopt a hybrid cloud infrastructure while moving crucial SAP workloads to the cloud.
Zacks Rank & Key Picks
SAP currently carries a Zacks Rank #3 (Hold). Shares of SAP have plunged 12.3% in the past year.
Some better-ranked stocks from the broader computer and technology sector are Advanced Micro Devices (AMD - Free Report) and Axcelis Technologies (ACLS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AMD’s first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of AMD have gained 26.4% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised a couple of cents upward to 89 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 55% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have declined 2.2% in the past year.