SAP acquires CallidusCloud – A Snap Analysis from Down Under
The News On January 30, 2018 SAP announced that its subsidiary SAP America, Inc. has entered into an agreement to acquire Callidus Software Inc., a leader in sales performance management and CPQ software. With a price tag of around $2.4 bn this is the most expensive acquisition SAP has announced in quite a time. With this acquisition SAP gets closer to the target of assembling the “most complete and differentiated portfolio to manage today’s customer experience” and claims that the combination of the CallidusCloud Lead to Money suite in combination with its own (Hybris) customer engagement suite creates a “leading solution portfolio”. SAP intends to consolidate the CallidusCloud solution set into its Hybris portfolio, with the sales cloud being the technical integration point of the software. As usual, the existing management team will stay on board. The Bigger Picture According to the most recent Gartner Magic Quadrants for Sales Performance Management (dated 15 January, 2018) and Configure, Price, and Quote Application Suites (dated 29 January, 2018) SAP catapulted itself into the leadership position of Sales Performance Management and into a visionary position in the CPQ market. Forrester Research already in their Forrester Wave: Configure-Price-Quote Solutions, Q1 2017 placed CallidusCloud into the leader section of their wave. With SAP’s Hybris solutions, including Gigya, SAP already has a powerful customer engagement suite, albeit with some gaps, a significant of which got plugged with this acquisition. While SAP CPQ is fairly capable on the C and P there is some deficiency on the Q. And it bases on grandfather IPC – not a bad engine, but one that is getting tired. Friend...
SAP CRM for S/4HANA – News from the Customer Frontier
It has been a little more than half a year now that I didn’t update on what is going on with SAP CRM and S/4HANA (which I will refer to as S/4 from now on; SAP it is time for you to change the unwieldy name to something more manageable). What Happened – So Far As you are well aware SAP is working on integrating a simplified version of SAP CRM into S4. The original roadmap offered a first customer release of an integrated product in early 2018, based on the September 2017 release of S4. The integration was planned as an add-on to S4. The initial scope of this CRM add on for S/4 was supposed to cover what is referred to as ‘core service’ functionality. This initial release shall be followed by ‘core sales’ functionality later in 2018. 2019 then is supposed to be dedicated to another round-off release covering further sales and service functionality, including loyalty management and migration tools. Roadmap and statements also so far have been fairly fuzzy about the strategic distinction between CRM as a part of S4 and the SAP Hybris line of CRM- and CEM systems. What does the Future have in its Basket? As it seems now, the release is not going to happen as fast as planned, nor in the originally planned way. Instead, in a webinar recently held for partners, SAP ‘announced’ two very interesting changes, with the second one likely also being a consequence of the first one. SAP CRM will no more be referred to as an add-on to S/4 but, at least for the service...
SAP and Microsoft bring their Partnership to the Next Level
The News On November 27 SAP and Microsoft announced a new level of their strategic partnership. Their key messages are that S/4 is fully ready to run on Azure Microsoft is committed to SAP and will upgrade its internal financial systems to S/4 on Azure SAP will move a dozen (unspecified) “key internal business critical systems” to Azure SAP and Microsoft will “co-engineer, go to market together with premier solutions and provide joint support services to ensure the best cloud experience for customers” SAP and Microsoft will both provide documentation about their internal projects “to provide customers with guidance and enterprise architecture for deployment of SAP applications on Azure” Of course it is not much of a surprise to SAP “connoisseurs” that SAP is not running its business on just one instance of their own S/4 systems – still, twelve is a fairly sizeable number to migrate to Azure. It is also not much of a surprise that Microsoft is an important and committed SAP ECC customer. As such Microsoft, of course, has plans to upgrade to S/4. All in all this is the long due follow-up announcement to the 2016 SAP and Microsoft announcement of “empowering organizations to advance their digital transformation”. Back in the day I wrote that this announcement shows a lot of potential for the customer and that Microsoft likely will have more advantages to Microsoft than for SAP. In 2016 the announcement was also about Fiori. There is no word about it anymore today. As an interesting aside, Microsoft announced that it will use Azure AI (Cortana) and it’s analysis services for “more efficient...