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Market Development at SAS

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SAS has spent the last four years moving its partnering strategy forward – making partnering a core part of how they do business, partnering with Teradata and Accenture, and most recently a push towards 30%/$200M of first year revenue impacted by partners. Russ Cobb reported out how this has been going in terms of partners:

  • From 24% to 34% in first year revenue impacts
  • Average partner deal size from $150K to $534K
  • About one third was incremental and just over half the top 50 deals

Global partners dominate with almost half the revenue while regional partners do well while channel partners make up the difference. Top 5 partners –¬†Teradata, HP, Accenture, IBM and EMC Greenplum – were 40% of partner revenue (next 5 were only another 8%).

Russ focused in on the Accenture and Teradata partnerships. Accenture and SAS have over 50 joint details and have a growing pipeline for 2012. A new organization has been formed within Accenture, with many thousands of folks, to scale their use of analytics across the board. SAS expects this to make a big difference going forward. Teradata meanwhile partnership is approaching $100M in revenue, drove most of the 2011 in-database revenue and the partnership continues to grow.

Focus today is on creating a customer-centric patnering approach, drive high performance analytics and kick off the next wave of partnering. Next up is a focus on decision and analytics management, customer intelligence and High Performance Analytics. 2013 seems likely to focus also on partner-led managed services and SAS OnCloud products.

Carl Farrell followed up with an overview of sales in Americas for 2011. Overall 2011 was much more even and stable than 2010 with strong demand across all industries with Brazil and other Latin American countries showing growth. SAS has taken Canada and Brazil to a vertical focus with an additional investment in domain expertise (customer intelligence, information management, healthcare). Growth widespread across industries with strong performances from several of the largest segments. Analytics, data management and foundation are the top 3 sources of revenue worldwide but there are some differences.

SAS has a SMB (<$500M) channel using geographical partners and inside sales. In 2011 added 375 new clients for a total of 4,200. Solutions on Demand also strong with a 57% growth in revenue. Particularly important in certain verticals and products.

For 2012 expect a focus on Big Data as well as growing understanding of the value of data in companies. There is also increased competition and yet a huge opportunity for SAS. The theme is therefore about putting customers at the core and managing alignment(right resources engaged at the right time), focus (business planning and focus on core initiatives by region), differentiation (breadth and depth of industry solutions, scalability, analytic and domain expertise) and relevance (customer language, vertical teams, partners). Americas will continue to focus on analytics, customer intelligence, fraud, risk management and information management for 2012 just like 2011.

Carl is expecting a strong 2012 with continued momentum and relevance as well as a larger pipeline and a growing number of enterprise-wide transactions.

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