Vendor Disruption, How Will SAP Fare?

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The reason for vendor disruption is clear. We are in the midst of a radical transformation of the entire IT landscape. Cloud, mobile, big data and IoT technologies are redefining all areas of business -- closing the gap between businesses and their customers, improving data-driven decision making throughout the enterprise, and accelerating end-to-end business process redesign.

Legacy, client-server, hardware-centric technologies with their dense, inflexible software stacks simply cannot keep pace with today's fast-changing market conditions, especially when it comes to new customer-facing applications that demand massive scalability, flexibility and agility.

Analysts’ sentiment indicates that the rate of change is too high for traditional vendors to cope with, and their customers can no longer afford maintaining expensive, rigid applications and managing escalating IT stack complexity -- both of which present a formidable barrier against using new technology to benefit the business.

While the last few decades were dominated by client server technologies and a hardware-centric view, the next decade will be software-centric and cloud-reliant. Flexibility, agility and speed will be paramount as we enter a new era of business-model transformation made possible by the real-time, digital connections across businesses, people, and devices.

SAP’s agile stack, powered by HANA, secures its future

With a deep understanding that traditional technology stacks create data gridlock and latency issues; legacy technology architectures present a convoluted jumble of custom programs and applications; and dated business processes do not support the pace and requirements of modern, real-time business in a world of exponential data growth, SAP introduced its breakthrough in-memory computing platform, SAP HANA, in 2010.

 Moreover, SAP has bet the company on HANA, which today serves as the foundation for all SAP products and ensures SAP’s relevancy as a dominant vendor of enterprise applications -- consumed on premise, in a public cloud, in a managed cloud (by SAP or SAP partners), or a combination (hybrid model) -- for decades to come.

With columnar storage, advanced in-memory compressions, and unmatched processing power, SAP on HANA is fast, empowering businesses to run in real time, crunching big data – transactional, operational, structured, & unstructured – to transact, analyze and predict instantly on a single platform at the moment of opportunity.

Leveraging SAP HANA as the common in-memory computing platform, businesses dramatically accelerate the speed of their business while radically simplifying their IT stack.

But HANA is more than just an in-memory database. It is a complete application development platform reducing complexity and infusing agility throughout the entire IT stack -- infrastructure, databases, applications, and UX.

Another aspect of HANA’s importance is that it is equally applicable to both the SAP and non-SAP worlds. Because of this, it is conceivable that in the not-too-distant future, there are likely to be more custom-built HANA applications touching non-SAP systems than commercially available ‘powered by HANA’ solutions marketed by SAP.

SAP HANA has generated $4.4 billion in license and maintenance revenue since its release six years ago, according to SAP (As reported in BloombergBusiness.)

SAP’s cloud gains are impressive

Today, SAP’s leadership status as a cloud company is indisputable. SAP’s acquisitions of SuccessFactors, Ariba, Hybris, Fieldglass and, most recently, Concur are vital to the company’s cloud offerings, and these acquisitions complement the progress of SAP’s organic cloud strategy underway for many years now.

SAP launched Business ByDesign (albeit with some hiccups) in 2007. In 2009, SAP certified select partners to offer hosted, subscription-based SAP Business All-in-One solutions. The BusinessObjects suite and a growing catalogue of Rapid Deployment Solutions (RDS) have been available via the cloud since 2011. In 2013, SAP announced its Managed Cloud as a Service (MCaaS) offering delivered by select SAP partners, and in April of 2014, SAP announced its offering of subscription models for SAP Business Suite, including ERP, via the SAP HANA Enterprise Cloud service.

At SAPPHIRE NOW 2015, SAP announced SAP S/4 HANA, Cloud Edition. Built on the advanced in-memory platform, SAP HANA, and designed with the SAP Fiori user experience (UX), S/4 HANA, cloud edition, represents the next wave of simplification and innovations across all core business functions — finance, accounting, controlling, procurement, sales, manufacturing, plant maintenance, project system and product lifecycle management, among others — empowering customers to run their entire enterprise in the cloud, in real time using mobile devices.

In addition, S/4 HANA, cloud edition, seamlessly integrates with SAP’s full array of cloud offerings, including those from SAP companies SuccessFactors, Ariba, Hybris, Fieldglass and Concur.

With SAP S/4 HANA, cloud edition, SAP significantly expands the business scope of its cloud offering built on SAP HANA, giving customers the opportunity to easily deploy hybrid scenarios — combining on-premise and cloud solutions — for unprecedented IT flexibility and accelerated business innovation, and equally vital, enabling businesses to execute their IT strategy at their own pace, based on their unique needs, while keeping all the integration and business benefits of existing SAP solutions

Powered by HANA, SAP’s cloud offering today includes both public cloud and private cloud delivery and spans the entire cloud-model spectrum — SaaS, PaaS, IaaS and MCaaS.

The depth, breadth and flexibility of SAP’s cloud offering — the ability to run the entire SAP Business Suite, including ERP, in the cloud on HANA — enables SAP customers of all sizes and across diverse industries to embark upon or accelerate their cloud journey in a way that makes the most sense for them.

As reported in BloombergBusiness, SAP claims more than 2,700 customers are running the new S/4 HANA suite, generating more than $1 billion in revenue. More business professionals – 38 million – use cloud solutions from SAP than any other enterprise vendor, according to SAP, a number SAP expects to nearly double with the acquisition of Concur.

As reported in ZDNet,SAP believes its cloud computing business will equal the software unit in size by 2018.

SAP partner power stronger than ever

Partners have always been an essential part of SAP’s innovation strategy. Today, SAP reports it has more than 11,700 partners worldwide, including channel partners, ISVs, OEM, platform and services partners, who are developing new apps and cloud services and reselling SAP Cloud to customers around the world.

According to SAP, more than 3,000 services partners and 4,000 resellers are helping companies innovate on the SAP HANA platform all around the world.

For our part, with 9,000 global SAP professionals supporting 2,700 clients spanning more than 40 countries and 22 industries, NTT DATA is uniquely qualified to unlock the value of SAP innovations across your extended enterprise.

Putting money where our mouth is, NTT DATA invests heavily in SAP to ensure that our customers always get the most from their SAP investment.

Prime examples include the NTT DATA SAP Solution Centers -- state of the art facilities featuring a wide array of integrated SAP industry, line of business, analytical, and technical products where IT decision makers, using their own data, can experience live demonstrations of the very latest SAP solutions, build business cases for investing in SAP, test enhancements to their existing SAP landscapes, and learn first hand how the power of SAP HANA can drive process improvements, efficiency gains, competitiveness and profits.

Contact us today to learn more about our experience and success in business-process transformation powered by SAP solutions, or to schedule a meeting at SAPPHIRE NOW.

Post Date: 3/31/2016

default blog image Bhalchandra Bhosale

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