Salesforce embraces the User Microsoft like – A Dreamforce Analysis
Now that the major waves of Dreamforce 2017 have settled, the announcements and a good part of the running commentary has been delivered, it is time for me to have a look at my pre-Dreamforce predictions. Having been briefed before the event but unluckily not been able to attend (nor having had the time to write this piece earlier, I now have the advantage of having had more ‘thinking time” and can put the main announcements that we were briefed on into a bigger picture. On the backdrop of an IDC study (sponsored by Salesforce) that postulates 3.3 million new jobs and an overall GDP impact of 859 billion dollar by 2022 in the “Salesforce economy”, the announcements basically revolve around one single topic: How to enable the employees (of Salesforce customers and partners) to deliver to this magnitude. They were around Easier consumption of AI technology with Einstein, and improved IoT support, Opening up Trailhead to Salesforce customers in order to support company specific learning maps Enabling Lightning, as the platform to become fully themed, i.e. embrace the customers’ brands. Although technologically different I club the ability to create and easily upload branded mobile apps to the app stores into this Collaboration using Quip, the software that Salesforce acquired about a year ago, and a new partnership with Google And in order to emphasize on the fact that they are serious about enabling people individually, Salesforce resuscitated the dot com prefix “my”. Thus myEinstein, myTrailhead, myLightning, mySalesforce, myIOT and mySalesforce got born. A topic that might be slightly overlooked is covered by two sentences in the announcement of...
AI and IoT at SAP – Yin and Yang
During the 2017 SAPPHIRE NOW conference SAP told the stunned audience about how they connected some dots to create better value and more intelligent business applications for their customers. In essence SAP lifted the veil on how the company will go ahead with two technologies that will dominate the next years and that are ordinarily treated as different topics. But which, in essence, are like yin and yang. I talk about AI and machine learning on one hand, and IoT on the other. SAP has been fairly quiet on the former and fairly vocal on the latter, although the first announcement was about machine learning powered intelligent business applications, back in November 2016. At that time SAP announced the availability of the machine learning platform for SAPPHIRE NOW 2017. After this, SAP announced SAP Leonardo, the bundling of their IoT portfolio back in January 2017. On day 1 of SAPPHIRE NOW SAP delivered on the November promise by announcing “it’s time for machine learning to take the work out of your work flow. It’s time for billions of devices to go from thinking, to doing. It’s time for SAP Leonardo, the SAP system for digital innovation.’ With this approach they even go beyond only connecting two technologies but they also add Blockchain, Big Data, Data Intelligence and Analytics into one single platform. Whereas one could argue that Big Data, Data Intelligence and Analytics are essentially the same. With this powerful combination, as Holger Mueller, Principal Analyst of Constellation Research, aptly observed, ‘technology for the first time can do more than business best practices want’. To accommodate for this, SAP...
Another Strong Year for SAP
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...