by twieberneit | Jan 25, 2017 | Analysis, Blog |
On January 24, 2017 SAP released its results of their fiscal year 2016 – and the fourth quarter thereof. In a nutshell SAP: Delivered to its increased 2020 guidance Had an increase of 31 per cent in cloud subscription and support revenue, while still being able to increase the software license and support revenue. Cloud revenue increased especially in Q4 and promises to stay at a high level with a very healthy backlog Increased its full year operating profit by 20 per cent to 5.12 Billion Euro (IFRS) Has a strong backlog of cloud bookings This success has a slightly negative effect on the company profitability while it negotiates the shift from license revenue to subscription revenue while being in an investment mode. It, however, seems to be driven by an increasing adoption of S/4HANA, a strong increase of the Hybris set of CEC solutions, including e-commerce and increasing traction in the HCM space. So it is broad. Based upon the strong delivery of 2016 SAP expects the cloud business to increase by up to 34 per cent in 2017 (all numbers of course at constant currencies) and increases its guidance of revenue and profit for 2017. In line with this the company is also bullish in its mid term outlook to 2020, which it increases, too. My Take Of course the big increase in revenues, expressed as a percentage, is partly owed to the fairly low number. In comparison Salesforce reported 2.14 Billion dollar for their third quarter alone, as opposed to 2.99 Billion Euro for SAP’s fiscal year. Oracle reported 798 million dollars in their FY Q1...
by twieberneit | Jan 12, 2017 | Analysis, Blog |
On January 10, 2017, SAP announced a bundling of their IoT portfolio of initiatives to focus on business outcomes instead of technology while combining the set of emerging products and solutions under the brand name Leonardo – as in Leonardo Da Vinci, one of the most forward looking artists and innovators ever. This announcement substantiates SAPs commitment to invest two billion Euro in IoT over the next 5 years. The new portfolio will combine adaptive applications, big data and connectivity as packaged line-of-business solutions, covering a range of topics. It bases upon a rebranded – and repackaged(?) HANA Cloud Platform, enhanced by the micro services for machine learning that were announced earlier and which I covered here. This enhanced platform is now called SAP Cloud Platform. As per a blog post accompanying the Leonardo announcement, the high level architecture of SAPs new offering looks like below and covers, besides a set of existing applications an IoT adapter – SAP Leonardo for Edge Computing – which serves as a device independent data input layer, essentially a kind of middleware, probably built on or using HCI. a foundational layer – SAP Leonardo Foundation – which includes the IoT business services that are to be exposed, enabling rapid development of applications. This makes up the functional core. and a ‘bus’ layer – SAP Leonardo Bridge – which enables the combination of real time data with applications and processes Leonardo is accompanied by a jump-start enablement program to accompany this initiative. This program includes introductory pricing and is intended to help organizations identify and validate IoT pilots and use cases, including expert staffing...
by twieberneit | Nov 10, 2016 | Analysis, Blog |
In my yesterday’s analysis of SAP’s HANA announcement, I wondered why SAP stays silent on the AI and MachineLearning frontiers. Well, today I know. They saved this announcement for today. And the announcement is a bang. SAP will deliver what they call ‘intelligent business applications’ that are based upon SAP’s new machine learning platform. The platform itself shall be made available with SAPPHIRE NOW 2017. The first significant intelligent application by SAP that is mentioned, is a brand intelligence application that leverages deep learning to analyze brand exposure in video and images to provide ‘accurate, real-time insights into sponsoring and advertising ROI”. You may remember that SAP earlier showcased an application to reduce recruiting bias, which is based on the machine learning platform, too. According to Juergen Mueller, Chief Innovation Officer at SAP, the new machine learning platform is intended to serve SAP’s and their ecosystem’s applications with the goal of creating more business value. Consequently, there are two more aspects to the announcement. SAP launched a partner program dedicated to SAP Application Intelligence. SAP invests into education offerings, starting with a ‘massive open online course’ on Enterprise Machine Learning on their OpenSAP platform. MyPoV This announcement clearly shows that SAP is as serious about machine learning as the company is about leveraging the power of its ecosystem. As I, and many other people, have often said, SAP is a formidable organization if and when it chooses to drive a topic. This is shown here again. And SAP is absolutely on the right track by pursuing this three-pronged approach of delivering a platform with first solutions, encouraging partners, and...
