Wednesday, 9 April 2014

SAP Provides Cloud Option for the Business Suite too

Users should continue to reflect the Business Suite as a rental solution from SAP. The new cloud - based forms offer their own in-memory database platform HANA. Details such as the pricing yet let the software giant, however, open.
SAP ongoing restructuring of its software portfolio in the direction of cloud computing moving forward. After the German software giant already has its in-memory database for rental from the IT cloud offering with the HANA platform, now followed by other application packages. User could in future also SAPs most important business software solution "SAP Business Suite ", order and use on the basis of Hana Enterprise Cloud in a subscription model, according to an official communication from Walldorf.

"This is a significant step in the transformation SAPs," said SAP's board member and technology chief Vishal Sikka’s latest initiative. The new offering underscores the cloud commitment of Germany's largest software maker. Sikka also announced, with a global network of its own data centers and additional migration services for its clients to accelerate its cloud plans. The manager promised the users more choice in relation to the compilation of business applications as well as a significantly simplified operation of the business software landscape.
SAP Provides Cloud Option for the Business Suite too

SAP cloud offer details remain open

Apart from the mere announcement of the latest SAP foray to date remains, however, not very concrete. The "SAP HANA Enterprise Cloud" offers future applications such as the "SAP Business Suite", the “SAP Business Warehouse" and the "SAP HANA Platform" in a subscription model, according to the announcement SAPs. The software will operate safely in the regional SAP data centers around the world. Users could here let their business-critical applications running in a private managed cloud environment. Further details, such as dependencies between certain modules or release conditions of cloud -powered software components as well as for Pricing remained the SAP responsible or guilty.

But just the financial details should the user companies particularly interested. Because the transition to the cloud does not necessarily mean that the software is operating effectively. SAP had recently announced the pricing for its cloud-based HANA platform known - and has it well within himself. Including computing infrastructure and HANA database will be due depending on additional options between about 4,600 and $ 87,700 per month. While there are opportunities for SAP customers to transfer existing licenses to the cloud and to take individual software components that will be in the future based in the cloud, from the on-premise maintenance? The extent to which the customer benefits from the fact, however, is likely to depend in large parts on the individual negotiation skills.

Customizing can cause problems in cloud migration

In addition, several questions remain open. Thus we read in the recent SAP announcement that existing maintenance contracts possess also migrated to the cloud applications continue to be valid. As a rental model fits with maintenance fees that SAP Manager will still have to explain in detail. It remains to also consider, entire customer installations transfer into the IT cloud easily. SAP itself says that there could be some limitations, especially in connection with the customer-or product-specific configurations at one point or another.

To pave the way for customers to cloud, SAP plans to offer additional services. The in-house service department will offer special cloud transformation services to convert existing SAP applications into the SAP HANA Enterprise Cloud. The leg also consider the integration of on-premise software or other SAP cloud solutions such as the acquired Success Factors Human Resources applications (HR ) and also purchased cloud-based procurement platform, Ariba. More than 15,000 specialists stood According to SAP ready to assist customers in their cloud plans.

The software manufacturer builds for its cloud strategy also its data centers continue. Worldwide there are currently 16 facilities, so those responsible from Walldorf. It was not until the beginning of April they had taken for the Asia-Pacific region, the first two data centers in Tokyo and Osaka in operation. All SAP data centers were working with in-memory technology and high -end servers to ensure the high standards of business critical workloads. With data centers globally distributed SAP plans for its customers, whilst also ensuring that regional and national rules for compliance are met.

SAPs path to the cloud remains stony

With his announcement, now offer the business suite for rental, SAP underlines although its cloud ambitions. However, there remains a long way. It is clear that customers want cloud-based on-demand software, said Steve Lucas, president of platform solutions from SAP. It will, however, take until the change had taken place over a wide area in the market. Many users are still skeptical to outsource mission-critical applications and data to the cloud. According to a survey of the German-speaking SAP User Group (DSAG ), only three percent of the 400 surveyed IT managers want to make this year IT funds for SAP's cloud offerings loosely. In addition was observed that SAP offers are not necessarily set when users interested in cloud solutions found DSAG CEO Marco Lenck. Users of SAP's on-premise software analyzed their requirements in detail and then analyzed the products that fit their landscape - with different software and cloud providers.

Also for SAP itself is the shift to the cloud is anything but simple. It is the major software vendors such as Microsoft, Oracle and SAP have a hard time to solve their dependence on traditional licensing maintenance business with which they have earned over the past decades a lot of money. The provider must be satisfied with much lower margins in the cloud business. This is about operational efficiency and mass. And also the flagship company of the IT cloud does not always simple. Cloud pioneer Salesforce.com, which with its CRM solutions in recent years, although got off to a rapid revenue growth, writes today in the red.

However, the SAP as well as the other software grandees will remain no choice but to continue ride on the cloud train - also because the traditional business with on- premise software is proving increasingly difficult in the saturated markets of Western economies, and companies to become more responsive, especially in the rapidly developing markets in Brazil, China and India in the direction of cloud offerings - but want to invest little money.

Ambitious goals with cloud solutions

The SAP executives pursue nonetheless ambitious goals. Already next year they intend to implement two billion euros with cloud offerings - that would be ten percent of the targeted 2015 total sales of 20 billion euros. In return, the software specialists from Baden, however, would have to increase significantly. Last year, SAP reportedly stood over 700 million euros in cloud revenue impact. This would require almost a tripling of cloud revenue in order to achieve the self- designated benchmark until next year.