Thursday, 25 July 2013

SAP creates financial incentives for switching to the cloud

Users who want to relocate functions from existing on-premise software from SAP to the cloud can take the appropriate licenses from the future maintenance. The modalities of such a change contained in the "cloud Extension Policy" that SAP has now been published.

SAP creates financial incentives for switching to the cloud
SAP plans to offer its customers access to their cloud solutions more palatable to financial incentives. To date, users have company for software features they want in future refer from the cloud, but have been in an on-premise installation in use, continue to pay maintenance for the license purchased version. That should change in the future, Christian Mueller; vice president of SAP explained in the section Maintenance Go-To-Market. Businesses should be able to handle the change in the future in the cloud flexible and "no longer sit on unused shelfware".

SAP software, the company previously operated as an on-premise solution and want to refer to them in future as a cloud version, customers can take in the new model of the maintenance. As the modalities and work off the bill exactly, regulates the Cloud Extension Policy, which has published for its customers in the software market place in the web of the Group. SAP itself has its own cloud portfolio continuously expanded in recent years, for example, by in-house developments such as the ERP package "Business ByDesign" or special function modules such as "Sales on Demand". In addition, the software specialists from Baden cloud solutions have purchased, such as SuccessFactors, a specialist in human capital and talent management, as well as the shopping network Ariba.

All of these cloud solutions, however, have their counterparts in SAP's on-premise world, such as human resource functions in the business suite, Supplier Relationship Management (SRM) and Customer Relationship Management (CRM). According to Müller, the use of cloud solutions for their own clientele is always interesting. Currently, developed from his point of view, especially hybrid infrastructures - mission-critical processes would continue to operate even in the most business-like, while supporting features that could be operated largely standardized, would increasingly moving to the cloud.

To avoid an expensive dual mode of cloud and on-premise solution in this environment, SAP has developed its cloud Extension Policy. This framework defines how unneeded on-premise software with new cloud capabilities will be charged. Muller admits that there may be at this point one way or another blur. For example, it is not easy, certain features of a complete package calculate out how the Business Suite. Therefore, the new policy should also be understood less as a price guide, but rather as a definition of rules as the modalities of such a change must be assessed.

Cloud control switch individually

Müller stresses in this context the benefits of the cloud, pointing out that the software-as-a-service options often offer more features as their comparable on-premise versions. At the same time the SAP manager expressed the expectation to win for their own cloud solutions using the cloud extension policy more users. The user should be able to manage their cloud migration flexibly and individually.

For example, would not all users of a specific function module are moved to the cloud. The customer can determine how many users are supposed to work in the future with a cloud version of itself. Accordingly, the expenditure for the maintenance of the reduced on-premise share diminish. SAP reportedly it does not matter which model; the customer service has been in use - the standard support or the more expensive Enterprise Support.

Businesses meet the integration and deployment of cloud solutions in highly complex IT environments, partially facing enormous hurdles, says Elaina Stergiades, research manager, IDC. "Therefore they are looking for value and use models that are flexible and an extension to the cloud at their own pace allow," said their assessment. The SAP model can help to optimize investment in on-premise and cloud it.

Cloud fraction on SAP business grows

For the German software giant cloud business will total more important. In the second quarter of 2013, SAP took with cloud subscription and support a 159 million euro, which is three times as much as in the same period last year. At the same time, the traditional software business declined by seven percent to 982 million euros. Thus, the cloud is now a share of almost 14 percent on product sales. However, it remains to be seen how the new policy affects cloud to the post in support of the SAP footprint.

This came in the most recently completed quarter to nearly 2.18 billion euros - up eight percent compared to the second quarter of 2012 - and so did the lion's share of the total revenues of more than four billion euros. The SAP executives go, however, do not assume "that this offer will have a significant impact on the forecast of the SAP sales and operating profit forecast for the year 2013," says an official release.

Recently however, there was some concern about SAP cloud Department. Their manager Lars Dalgaard, ex-chief of the acquired SAP cloud specialists SuccessFactors, announced in late June from his executive position cloud. We were told, Dalgaard SAP will continue to advise you. Insiders report, however, that there are two different views of corporate culture clashed and the native Dane finally had to go. In April 2011, had the come of Oracle John Wookey, who should drive the development of various cloud modules approved by SAP. Now to take the threads of SAP's cloud business into the hands of technology and development chief Vishal Sikka.

SAP users welcome the initiative and hope for more

The SAP User welcome the recent initiative of its software supplier. The decision to make the SAP license model at this point flexible, lay a concrete demand DSAG basis, it was the part of the German-speaking SAP User Group (DSAG) "We have long urged that companies operating in the want to develop into cloud must not hold on to their licensing costs, "said board member Andreas DSAG Oczko the SAP announcement. Rather, it should be possible to liquidate the superfluous by the cloud functionality licenses. SAP have drawn the right conclusions in terms of SAP customers.

For the DSAG it is a step in the right direction to the first stones to vacate at the SAP customers in the way that might have been difficult for an investment in cloud solutions, determine the user agent. Moreover, it is a success, the ansporne, "together with SAP further potential for improvement to work out in the license area, to discuss and come to transferable results, to further promote the innovation of all SAP customers with SAP solutions." DSAG urging for some time on the license conditions more flexible overall stronger. So far, the SAP management had, however, turned a deaf ear to ear this.

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