SAP CEO Bill McDermott promises to help customers simplify their technology landscapes using SAP Hana Enterprise Cloud. But is this the kind of cloud that most companies seek?
SAP CEO Bill McDermott kicked off the company's annual Sapphire Conference in Orlando, Fla., on Tuesday promising to help customers simplify their technology landscapes. It was a brave, and some would say incongruous, promise coming from a company known for its complicated enterprise applications.
The irony wasn't lost on McDermott, who acknowledged that SAP's technology has been "too complex." The SAP way to "run simple," as this year's Sapphire theme extols, is to move to the SAP Hana Enterprise Cloud.
SAP's cloud simplifies in two ways, McDermott reasoned. First, you won't have to deal with hardware and systems-management issues. Second, you gain performance and simplification advantages because, as the name suggests, this cloud runs on the Hana in-memory platform, which compresses data and eliminates separate transactional and analytical infrastructure layers. SAP itself runs on this cloud, and it collapsed its data footprint from 11 terabytes down to 2 terabytes, according to McDermott.
The question is, is this the kind of cloud that most companies are looking for, and are the simplifications and performance gains promised by Hana enough to lure customers?
Introduced last year, the SAP Hana Enterprise Cloud is actually a managed services environment. In other words, it's hosting of SAP's existing software, not a public cloud that delivers multitenant application services, a la NetSuite, Salesforce.com, or Workday. Hosting has been available for years, but the incentive to do it in SAP's cloud is to gain the turbocharging and simplification of Hana.
One bit of new news at Sapphire 2014 is the introduction of SAP Simple Finance, an evolved subset of SAP financial capabilities optimized to run on Hana. It's available on premises, but it's now an added incentive for customers to move to the SAP Hana Enterprise Cloud.
SAP CEO Bill McDermott at Sapphire 2014.
Simple Finance doesn't displace the existing Business Suite finance apps, but it's said to simplify and modernize key workflows, introduce new interfaces, and strip out antiquated code. If you already have SAP's finance apps, you can move to Simple Finance at no extra charge -- for the app. If you're not using Hana, you'll have to license or subscribe to the platform.
Another bit of news at Sapphire was the announcement that Fiori, SAP's consumer-style, mobile-ready applications and interfaces, is now available at no extra charge. SAP introduced Fiori last year as an extra-cost option, but that didn't fly. The change in policy comes after an outcry from customers who complained that those paying steep maintenance fees should be entitled to modern interfaces.
It turn out Fiori apps and interfaces aren't that easy to install, so SAP's original Fiori strategy was shortsighted, according to enterprise software consultant Frank Scavo of Strativa. SAP stands to make more money by giving these apps and interfaces away and recovering the cost through consulting and implementation service fees.
As for Simple Finance, think of it as an added incentive to move to SAP's Hana-powered cloud. And it's just the first of many optimized feature sets to come. SAP execs revealed that the company's entire Business Suite will be "Simplified" by the end of this year.
The questions for would-be customers of these Simple offerings will be many. Will you lose (and possibly have to recreate) any functions or customizations available in your legacy application? [Author's note: SAP is insisting, Day 2 here at Sapphire, that customizations will carry forward on the new Simple apps.] How much time and effort will be
Doug Henschen is Executive Editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, big data and analytics. He previously served as editor in chief of Intelligent Enterprise, editor in chief of ... View Full Bio
Building A Mobile Business MindsetAmong 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.