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SAP Clings To A Dated Cloud Apps Strategy
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Cindi Howson, BIScorecard
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Cindi Howson, BIScorecard,
User Rank: Apprentice
12/10/2012 | 1:47:03 PM
re: SAP Clings To A Dated Cloud Apps Strategy
Good article, Doug, but I would ask by which yard stick are you evaluating their cloud strategy? Within the ERP category, SAP's main competitor is Oracle who I think has been even slower to embrace the cloud. Within the BI segment, SAP or more specifically BusinessObjects was early to the cloud. for the next couple of years, Gartner was estimating that cloud will only account for 3 % of BI total market share, which suggests that demand in this segment for cloud is not as strong as say in the HR, payroll, or sales force segments. In that regard, I think there is still the debate of when does cloud make sense and when is on-premise better.
Regards,
Cindi Howson
www.biscorecard.com
D. Henschen
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D. Henschen,
User Rank: Author
12/4/2012 | 4:26:58 PM
re: SAP Clings To A Dated Cloud Apps Strategy
I've heard loud and clear from SAP that they think my headline and blurb up top are misleading (and harsh). The Twittersphere, too, has seen comments from third parties saying as much. The nuance that doesn't come through until page 2 is that what I view as dated is SAP insistance that "the core" will remain on premises at large corporations. My point is that that's breaking down, and SAP will inevitably have to back peddle unless it addresses this question/long-term roadmap before the market does so. A good start would be defining what is "core" and then reexamining the progress of each piece into the cloud. What will be there in 2015? What will be there in 2020? I was among the first to refute Larry's "SAP's got nothing in the cloud but SuccessFactors until 2020" Tweet, but customers will increasingly want to see elements of the core moving into the cloud. -- Doug Henschen
D. Henschen
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D. Henschen,
User Rank: Author
12/3/2012 | 8:17:02 PM
re: SAP Clings To A Dated Cloud Apps Strategy
THe vast majority of big enterprises aren't going to rip and replace legacy systems with cloud services, but the point here is that SAP should lead the way, not be dragged, into delivering "the core" in the cloud. -- Doug Henschen
EricLundquist
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EricLundquist,
User Rank: Apprentice
12/3/2012 | 6:48:27 PM
re: SAP Clings To A Dated Cloud Apps Strategy
Some good points here. There used to be this sort of gentlemen's agreement that small and medium companies were good candidates for the cloud, but big companies needed on premise horsepower. This model is seriously breaking down as big companies are mobile, dispersed and great cloud candidates. Can't power a big company via the cloud? Tell that to Amazon.


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