SAP Partner Managed Cloud: The Complete Guide for SMEs in India
Quick Definition: SAP Partner Managed Cloud (PMC) is a procurement and delivery model where a certified SAP partner acquires SAP software licences on a customer’s behalf, bundles them with cloud hosting and managed services, and delivers everything as a single monthly subscription, converting upfront capital expenditure (CAPEX) into a predictable operating expenditure (OPEX).
If you are a CIO, IT Director, or CFO at a growing Indian SME, you have probably spent time weighing your SAP cloud options and found the landscape confusing. RISE with SAP. GROW with SAP. Traditional perpetual licensing. And somewhere in the middle, a model called SAP Partner Managed Cloud (PMC) that almost nobody talks about clearly.
This guide changes that. By the end of this page, you will know exactly what SAP PMC is, how it works, who it is right for, and how it compares to every alternative, so you can walk into your next boardroom conversation with complete clarity.
What Is SAP Partner Managed Cloud (PMC)?
SAP Partner Managed Cloud is a programme under SAP’s PartnerEdge: Run track that enables certified SAP partners like SkySurge to lease SAP software licences on behalf of their customers. The partner then combines those licences with cloud infrastructure (on AWS or Microsoft Azure) and ongoing managed services, packaging everything into a single monthly fee.
The result for the customer is simple: no upfront SAP licence purchase, no separate infrastructure contract, no multiple vendor relationships. You pay one predictable monthly amount and get a fully operational, SAP-certified cloud environment managed end to end by your partner.
The three components bundled into every SAP PMC engagement are:
How Does SAP Partner Managed Cloud Work?
The PMC model follows a structured process that is simpler than most SME decision-makers expect:
Step 1 — Define Your Software Scope
You work with your SAP partner to determine the SAP modules that you require. This might include SAP Business One HANA for finance, inventory, and operation. You will also determine the number of users and the contract term, usually two to five years.
Step 2 — Partner Acquires Licences from SAP
Your SAP partner, acting as the cloud service provider, will acquire a term licence from SAP. This is done through their existing SAP Partner Managed Cloud (PMC) agreement with SAP. You will not have to deal directly with SAP, removing a layer of complexity from the process.
Step 3 — Cloud Environment Is Provisioned
Your SAP partner will provision the SAP environment with either Amazon Web Services (AWS) or Microsoft Azure. This includes server configuration, backup, and integration with existing infrastructure.
Step 4 — Go Live and Ongoing Management
Your SAP partner will now be responsible for managing the entire SAP environment. This includes system monitoring, performance optimisation, and application upgrades. You can now concentrate entirely on running your business.
Step 5 — Single Monthly Invoice
You will receive one monthly invoice to pay. This will include all SAP licence costs, cloud hosting, and managed services. No surprises. No negotiations.
Key Benefits of SAP Partner Managed Cloud for SMEs
1. Zero Upfront Licence Cost
The first advantage for CFOs to consider: there’s no cost associated with SAP licenses. Instead, there’s a cost associated with SAP subscriptions. This keeps the cash in the business for the things that grow the business, such as hiring new employees or entering new markets.
2. Faster Time to Go Live
The time to go live with SkySurge’s SAP solution is much shorter than the time to go live with other SAP solutions. SkySurge has a PMC contract with SAP and pre-configured cloud environments. This means our SME clients go live in a matter of weeks, not months.
3. One Partner, One Contract, One Invoice
You avoid the headache and cost associated with managing three different contracts. SkySurge has a single contract with the SME. This means we’re the single source for everything SAP. If there’s a problem, we’re the single source to call to fix it.
4. Predictable Monthly Expenditure
With SkySurge’s SAP solution, the cost to the SME is predictable. There’s a fixed cost every month. There’s no surprise cost associated with annual maintenance fees. There’s no surprise cost associated with infrastructure upgrades.
5. Scalability that Matches Your Business Growth
The scalability of the SAP environment matches the growth of your business. Adding users, modules, or capacity is a commercial discussion with your partner, not a capital purchase or a new SAP contract.
Who Should Choose SAP Partner Managed Cloud?
SAP PMC is the right choice for your business if the following conditions apply to your organization:
- A SME or mid-market organization with 20 to 500 users and require a cost-effective and structured SAP solution.
- You require SAP Business One in the cloud without a high up-front cost.
- Currently off SAP maintenance and wish to get back on SAP maintenance without incurring back fees.
- Require a single source to manage your SAP solution and avoid the complexities and cost of managing multiple vendor relationships.
- You have a lean IT department and cannot afford the cost and resource requirement to manage SAP infrastructure in-house.
- Require a robust ERP solution in the industries of manufacturing, retail, trading, and distribution, and require the system to go live fast and be scalable.
- You require the flexibility to incrementally grow your SAP estate without the requirement to purchase a large up-front licence suite.
Note: If your business is a large enterprise with a complex and highly customized SAP environment and a dedicated internal SAP Basis organization, then RISE with SAP or the on-premise approach might be more suitable. The honest answer is, PMC was built for businesses where SAP works for them, not businesses where SAP is a discipline.
How SkySurge Delivers SAP Partner Managed Cloud for Indian SMEs
SkySurge is a Partner of SAP and has won the prestigious ‘Best Partner Managed Cloud Award for Asia 2018’. SkySurge has successfully implemented SAP Partner Managed Cloud for various manufacturing, retail, trading, and distribution businesses across India.
What makes SkySurge’s approach different for Indian SMEs:
India-specific commercial model:
Our commercial model for SAP Partner Managed Cloud is specifically designed for Indian SMEs. Our pricing for SAP Business One HANA on cloud is as low as 2,500 per user per month.
Pre-configured industry templates:
SkySurge has gained significant implementation expertise in Indian retail, manufacturing, and distribution businesses. Our pre-configured industry templates will help you go live faster.
In-country support team:
SkySurge’s support team will monitor and manage your cloud instance from Bengaluru. Our team is certified and will attend to your issues in your timezone, in your language, and with your business in mind.
End-to-end responsibility:
SkySurge will be your single-point-of-contact for everything – license procurement, cloud provisioning, and ongoing support. No finger-pointing between different vendors in case something goes wrong.
Frequently Asked Questions — SAP Partner Managed Cloud
What is SAP Partner Managed Cloud (PMC)?
SAP Partner Managed Cloud is a licensing and delivery model in which a certified SAP partner buys SAP licenses for you, and you receive the licenses, cloud hosting, and managed services from the partner in return for a single monthly subscription fee. It makes your SAP investment an operating expense instead of a capital cost.
What is the difference between SAP Partner Managed Cloud and RISE with SAP?
SAP Partner Managed Cloud is provided by a certified SAP partner, whereas RISE with SAP is a cloud transformation program offered by SAP itself. It is suitable for large enterprises migrating from legacy SAP ECC systems to S/4HANA. For Indian SMEs, it is better in terms of commercial fit, implementation speed, and flexibility compared to RISE with SAP.
How much does SAP Partner Managed Cloud cost in India?
The cost of SAP Partner Managed Cloud in India varies according to the number of users, the SAP modules needed, and the contract term. For Indian SMEs, at SkySurge, SAP Business One HANA cloud with SAP Partner Managed Cloud costs as little as ₹2,500 per user per month.
What cloud platforms are used to host SAP PMC environments?
SAP PMC environments are hosted on either AWS or Microsoft Azure. These are both SAP certified hyperscalers and meet SAP's infrastructure requirements. Your partner will be able to select the most appropriate platform based on your current technology landscape.
What if my company is off SAP maintenance?
This is one of the biggest strengths of the PMC model. Companies can rejoin SAP and avoid back payments on maintenance fees if they have lapsed on SAP maintenance fees. This is a big commercial advantage. Discuss this with your SAP partner.
