The Partner Opportunity For SAP Business AI A Total Economic Impact™ Partner Opportunity Analysis
SAP Business AI enables partners to build AI capabilities, boost revenue with new IP- and service-related streams, and improve margins with reduced development time and effort. Partners can expand client relationships as trusted strategic partners, driving business transformation with SAP Business Technology Platform, RISE, and SAP Business Data Cloud. تحميل الوثيقةThe Partner Opportunity For SAP
Business AI
A Total Economic Impact™ Partner Opportunity Analysis
A Forrester Total Economic Impact ™ Study Commissioned By SAP, March 2025
Business AI
A Total Economic Impact™ Partner Opportunity Analysis
A Forrester Total Economic Impact ™ Study Commissioned By SAP, March 2025
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 2
ABOUT FORRESTER CONSULTING
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outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with
leaders to execute their specific priorities using a unique engagement model that ensures lasting impact. For
more information, visit forrester.com/consulting.
© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is
based on best available resources. Opinions reflect judgment at the time and are subject to change.
Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester
Research, Inc. All other trademarks are the property of their respective companies.
Table Of Contents
Executive Summary 3
The SAP Business AI Partner Journey 10
Analysis Of Partner Revenue Streams 14
Analysis Of Partner Investments 23
Financial Summary 30
Consulting Team:
Sanny Mok
Tamira Lee
ABOUT FORRESTER CONSULTING
Forrester provides independent and objective research-based consulting to help leaders deliver key
outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with
leaders to execute their specific priorities using a unique engagement model that ensures lasting impact. For
more information, visit forrester.com/consulting.
© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is
based on best available resources. Opinions reflect judgment at the time and are subject to change.
Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester
Research, Inc. All other trademarks are the property of their respective companies.
Table Of Contents
Executive Summary 3
The SAP Business AI Partner Journey 10
Analysis Of Partner Revenue Streams 14
Analysis Of Partner Investments 23
Financial Summary 30
Consulting Team:
Sanny Mok
Tamira Lee
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 3
Executive Summary
IT and business leaders are heavily incentivized to modernize their SAP landscape with
rapid technological advancements in the SAP ecosystem, particularly in S/4HANA, RISE,
GROW, and private and public cloud. 1 There is significant opportunity — and also
complexity — for organizations to maximize innovation as part of major business
transformation programs. SAP has a stream of AI services and constructs that enable
impactful AI implementation at scale as part of the wider enablement with SAP Business
Technology Platform (BTP), RISE, and SAP Business Data Cloud. ISVs and system
integrators can leverage the SAP Business AI partner program to build AI capabilities
and offerings, boost revenue with new IP- and service-related revenue streams, and
improve margins with reduced development time and effort. As partners accelerate
business transformation for clients, they can also expand client relationships as their
trusted strategic partner.
SAP Business AI provides built-in tools that enhance the capabilities of SAP applications. With
SAP Business AI, both SAP and partners can offer development and migration tools available
on SAP BTP to support their clients’ business transformation journeys and improve business
processes. The Generative AI Hub, a part of SAP Business AI, allows partners to access
multiple large language models (LLMs) with one integration and choose one that best fit their
needs, as they enhance existing applications or develop new solutions.
SAP commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and
examine the potential business opportunity and return on investment (ROI) partners may realize
by building and scaling a SAP Business AI practice. 2 The purpose of this study is to provide
potential and existing partners with a framework to evaluate the potential business opportunity
associated with building, managing, and selling SAP Business AI as part of the SAP partner
ecosystem.
Return on investment (ROI)
143%
Net present value
$12.4M
Executive Summary
IT and business leaders are heavily incentivized to modernize their SAP landscape with
rapid technological advancements in the SAP ecosystem, particularly in S/4HANA, RISE,
GROW, and private and public cloud. 1 There is significant opportunity — and also
complexity — for organizations to maximize innovation as part of major business
transformation programs. SAP has a stream of AI services and constructs that enable
impactful AI implementation at scale as part of the wider enablement with SAP Business
Technology Platform (BTP), RISE, and SAP Business Data Cloud. ISVs and system
integrators can leverage the SAP Business AI partner program to build AI capabilities
and offerings, boost revenue with new IP- and service-related revenue streams, and
improve margins with reduced development time and effort. As partners accelerate
business transformation for clients, they can also expand client relationships as their
trusted strategic partner.
SAP Business AI provides built-in tools that enhance the capabilities of SAP applications. With
SAP Business AI, both SAP and partners can offer development and migration tools available
on SAP BTP to support their clients’ business transformation journeys and improve business
processes. The Generative AI Hub, a part of SAP Business AI, allows partners to access
multiple large language models (LLMs) with one integration and choose one that best fit their
needs, as they enhance existing applications or develop new solutions.
SAP commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and
examine the potential business opportunity and return on investment (ROI) partners may realize
by building and scaling a SAP Business AI practice. 2 The purpose of this study is to provide
potential and existing partners with a framework to evaluate the potential business opportunity
associated with building, managing, and selling SAP Business AI as part of the SAP partner
ecosystem.
Return on investment (ROI)
143%
Net present value
$12.4M
EXECUTIVE SUMMARY
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 4
To better understand the revenue streams, investments, and risks associated with a SAP
Business AI practice, Forrester interviewed nine representatives from eight existing SAP
Business AI partners with experience collaborating with SAP to build or innovate their SAP
Business AI and ultimately sell and scale the service. These partners include both ISVs and
systems integrators. All interviewees noted their organizations sold software as a service (SaaS)
solutions based on their own intellectual property they built on SAP Business AI.
To illustrate the financial impact and subsequent partner business opportunity for SAP Business
AI partners, Forrester aggregated the characteristics of these interviewees and combined the
results into a single composite organization that is a global software and services partner
actively generating $200 million annual revenue across all its practices.
KEY FINDINGS
Revenue opportunities. The composite partner organization captures the following revenue
streams, which are representative of those experienced by interviewees’ organizations:
• Gross profits from custom IP built on SAP Business AI worth $11.1 million. The
composite partner organization can identify client business problems and develop
customized solutions using SAP Business AI. Solution development is streamlined with
SAP BTP, improving productivity and boosting profit. Over the three-year analysis, this
ability for customization is worth $11.1 million in gross profit.
• Gross profits from packaged application built with SAP Business AI worth $8.0
million. The partnership enables the composite partner organization to develop and
launch a packaged application with new AI capabilities that can address client
challenges on a broad scale. This generates additional recurring revenues and low
churn, which is worth $8.0 million in gross profit over the three-year analysis.
• Gross profits from strategy consulting services worth $2.0 million. The composite
partner organization bundles strategic consulting services with SAP Business AI
products, advising clients on their AI strategy and identifying potential for further AI use
cases. Over the three-year analysis, this brings $2.0 million in gross profit to the
composite partner organization.
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 4
To better understand the revenue streams, investments, and risks associated with a SAP
Business AI practice, Forrester interviewed nine representatives from eight existing SAP
Business AI partners with experience collaborating with SAP to build or innovate their SAP
Business AI and ultimately sell and scale the service. These partners include both ISVs and
systems integrators. All interviewees noted their organizations sold software as a service (SaaS)
solutions based on their own intellectual property they built on SAP Business AI.
To illustrate the financial impact and subsequent partner business opportunity for SAP Business
AI partners, Forrester aggregated the characteristics of these interviewees and combined the
results into a single composite organization that is a global software and services partner
actively generating $200 million annual revenue across all its practices.
KEY FINDINGS
Revenue opportunities. The composite partner organization captures the following revenue
streams, which are representative of those experienced by interviewees’ organizations:
• Gross profits from custom IP built on SAP Business AI worth $11.1 million. The
composite partner organization can identify client business problems and develop
customized solutions using SAP Business AI. Solution development is streamlined with
SAP BTP, improving productivity and boosting profit. Over the three-year analysis, this
ability for customization is worth $11.1 million in gross profit.
• Gross profits from packaged application built with SAP Business AI worth $8.0
million. The partnership enables the composite partner organization to develop and
launch a packaged application with new AI capabilities that can address client
challenges on a broad scale. This generates additional recurring revenues and low
churn, which is worth $8.0 million in gross profit over the three-year analysis.
• Gross profits from strategy consulting services worth $2.0 million. The composite
partner organization bundles strategic consulting services with SAP Business AI
products, advising clients on their AI strategy and identifying potential for further AI use
cases. Over the three-year analysis, this brings $2.0 million in gross profit to the
composite partner organization.
EXECUTIVE SUMMARY
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 5
Key outcomes. Benefits that provide value for the composite partner organization but are not
quantified for this study include:
• Enhanced security and privacy to drive business growth. SAP Business AI’s private
tenant feature enables the composite partner organization to maintain data integrity and
compliance.
• Strengthened customer relationships as a trusted strategic partner. The composite
partner organization oriented client conversations around the value that AI could bring to
their organization, and how it would enable their broader business transformation
initiatives.
• Streamlined end-user experience. AI-driven efficiencies significantly improve both user
and customer experiences by simplifying workflows.
Investments. Beyond the cost of delivering its services (i.e., hiring consultants, developers,
cloud consumption, sales commission) which are embedded in the gross margin calculations of
each revenue stream, the composite partner organization also invests in:
• Incremental R&D worth $5.9 million. The composite partner organization dedicates
time and resources into developing the packaged application and engages in continuous
process and product enhancements.
• Employee upskilling worth $420,700. Almost all employees of the composite partner
organization will undergo AI training. A portion of developers and consultants with limited
“A majority of the large enterprises and even medium-
sized companies run on SAP and use SAP as their
business database. Data is the key ingredient for any
kind of AI to work. So, SAP becomes a natural starting
point for any major corporation to start their AI journey.”
Head of AI operations, service partner
TOTAL ECONOMIC IMPACT OF <CLIENT> **PRODUCT** 5
Key outcomes. Benefits that provide value for the composite partner organization but are not
quantified for this study include:
• Enhanced security and privacy to drive business growth. SAP Business AI’s private
tenant feature enables the composite partner organization to maintain data integrity and
compliance.
• Strengthened customer relationships as a trusted strategic partner. The composite
partner organization oriented client conversations around the value that AI could bring to
their organization, and how it would enable their broader business transformation
initiatives.
• Streamlined end-user experience. AI-driven efficiencies significantly improve both user
and customer experiences by simplifying workflows.
Investments. Beyond the cost of delivering its services (i.e., hiring consultants, developers,
cloud consumption, sales commission) which are embedded in the gross margin calculations of
each revenue stream, the composite partner organization also invests in:
• Incremental R&D worth $5.9 million. The composite partner organization dedicates
time and resources into developing the packaged application and engages in continuous
process and product enhancements.
• Employee upskilling worth $420,700. Almost all employees of the composite partner
organization will undergo AI training. A portion of developers and consultants with limited
“A majority of the large enterprises and even medium-
sized companies run on SAP and use SAP as their
business database. Data is the key ingredient for any
kind of AI to work. So, SAP becomes a natural starting
point for any major corporation to start their AI journey.”
Head of AI operations, service partner