by twieberneit | Jul 25, 2022 | Analysis, Blog |
The News On July 21, 2022, SAP reported its numbers for the second quarter 2022 and the first half of the business year 2022. In contrast to the last times, I’d like to cover this in written form, as this one is quite interesting and probably takes a bit longer than 5 to 10 minutes. SAP changed the report structure to reflect the common cloud service terminology. It is reporting IaaS, PaaS and SaaS now. The overall cloud revenues increased by 34 percent, with some tailwind by the current weakness of the Euro. The cloud backlog surpassed € 10 bn for the first time, growing at the same pace. S/4HANA Cloud revenue is up by 84 percent, with the backlog even growing at 100 percent. This revenue growth is consistent across the reporting regions. For the first time, SAP broke out PaaS revenues, which came in at € 389 million, up 49 percent yea over year. Not surprisingly, the profitability went down, which is attributable to loss of business due to the war in Ukraine and unfavorable conditions for SAP Ventures. The bigger Picture The enterprise cloud market is extremely contested. It is a saturated market that is dominated by few vendors that are able to support important parts of or even the complete business value chain. The challenge facing all these vendors is the necessity to scale down into the mid and lower mid-market. This, however, is a region that is covered by smaller vendors with similar aspirations, e.g., Creatio, Freshworks, Hubspot, Odoo, Pega, ServiceNow, SugarCRM, Zendesk or Zoho, to name but a few. The big vendors in this Clash...
by twieberneit | Oct 12, 2019 | Analysis, Blog |
It has been a while since I last mused about things S/4HANA and C/4HANA (or Customer Experience Suite) at SAP. So, it is time to have a look at what happened since. Last year I concluded that “the differentiation between the old world transactional systems and the systems of engagement is more and more being sorted out” and that the “modularization of the various clouds into ‘Micro’-Services would allow for a seamless recombination of systems that allow for the definition of functional scope according to customer needs as opposed to only offering pre-packaged systems”. Has there been any change, since? Let’s go along the questions that I asked in my previous post. How reliable is the roadmap, or rather, are the roadmaps? At the end of the day there is the eternal dilemma between flexibility and stability. How to go ahead with multiple back end systems? How are engines and industry solutions dealt with? How is the differentiation between S4 including customer management and the C4 offerings? All these questions continue to be relevant, as they are touching the core of SAP’s strategy. What is the current answer to them? Let me give my take on them, as I see it evolving. Just to be sure, this is my observation and me listening to customers, not an official word of SAP. Just my interpretation. After all I am not on the distribution list of SAP’s internal strategy discussions. Being a CRM guy and a suite guy, for me the last question is the elephant in the room. The answer to where SAP sees the boundary between S4 and C4...
by twieberneit | Jun 7, 2018 | Analysis, Blog |
SAPPHIRE 2018. In an Orlando convention center, far away from Walldorf SAP holds its annual conference, boldly going where no one has gone before. But enough of this poor allegation to Star Trek although it reasonably sets the tone. The first two days gave a deep view into the company strategy. Condensed into two press releases the company laid out its vision of the future of CRM and intelligent enterprises. And, doing so, shot a few broadsides at the competition, especially Salesforce. The News “The legacy CRM systems are all about sales; SAP C/4HANA is all about the consumer … when you connect all SAP applications together in an intelligent cloud suite, the demand chain directly fuels the behaviors of the supply chain” said SAP CEO Bill McDermott. SAP intends to achieve this link of front- and back office by fully integrating an augmented suite of solutions that base on the SAP Hybris Cloud solutions into the digital core, the transactional back end. This integration is done via the SAP Cloud Platform. Additionally, it is fusing the new high profile acquisitions Gigya and CallidusCloud into the solution. C/4HANA; source SAP The Customer Data Cloud is what has been Gigya. This model, as well as S/4HANA, will be supported by the SAP HANA Data Management Suite, which is essentially a beefed up Master Data Management Solution around the SAP Data Hub. The second press release is about AI, IaaS, and more AI. SAP starts to talk more about conversational AI and Leonardo, as well as blockchain get more to the forefront. Mostly on the back end. The bigger Picture The...
by twieberneit | Jun 12, 2017 | Analysis, Blog |
After having talked with Volker Hildebrand about the future of SAP CRM and whether or not there will be a CRM component in S/4HANA at CRM evolution 2017 I now had the chance to follow up with some folks back at SAP in Walldorf. A little Recap Volker told me that, unsurprisingly, SAP is working actively on adding CRM functionality into S/4HANA. In fact, they are merging SAP CRM into it. This is in my eyes meanwhile also the preferred of the two possible options; the other one would be marrying SAP Hybris C4C into S/4HANA. This is the approach which I originally preferred as it would lead to a cleaner code base. I changed my mind, putting customer friendliness reasons over technological cleanliness. The main advantages of merging SAP CRM into S4/HANA over SAP Hybris C4C are that this approach Opens a future roadmap for current SAP CRM customers that stretches beyond 2025. These customers else are at risk of defecting. Provides the continued chance for customers to run their SAP instance on-premise. According to Volker there are still a good number of customers that do not want to run their instance in the cloud. The key word here is choice. It simplifies the system landscape and its operation And this approach works, in spite of SAP seemingly having numerous studies that lay out in detail that SAP CRM could never work as part of an ERP. Now What is Going On? As said, SAP is merging SAP CRM into S/4HANA. This will not be a simple merge but CRM will become and Add On to S/HANA. This...
