SAP Nation - the book
Discussing the impact of the annual $200 billion ecosystem around SAP
Chris Kernaghan
MT @dahowlett @dealarchitect how have SAP customer's buying habits changed since 2008, has there been a shift from CapEx to OpEx and are those OpEx expenditures really being spent on Cloud or what SI's reflect as being Cloud?
John Furrier My guess is that many have been putting in POCs for cloud and not sure the uptake on cloud at SAP
Tim Fisher @furrier @BoobBoo I still think a good number of people struggle to understand what they mean by cloud anyway. Complicates the conversation before you even start...
Chris Kernaghan @furrier @TimFisherUK Cloud is not difficult to grasp, you just need to spend 5 mins and realise that most of it is about the level of control you wish to exert over the resources you utilise/purchase
CrowdFather it's the same IT stuff for years except the new model is speed of deploying new apps and changes
John Furrier @Crowdfather cloud is beyond obvious in terms of future but the integration with on prem is not straightforward huge amt of issues; oppty is for app infra more than ever
John Furrier @Crowdfather at #hpdiscover and all other events we've been to all point to #SDN and network issues holding up the app SaaS game in #devops
Chris Kernaghan @furrier @TimFisherUK @Crowdfather True, integration is a massive piece of gthe puzzle - especially integration at scale. This is where experienced Cloud architects are necessary and not in plentiful supply
CrowdFather Totally agree on Chris point!! policy based {blank} has been around for years. Now it's just more sh*t to deal with
Tim Fisher you're coming at this from the techy pov. Sales & business guys just want cheap, fast, secure etc but they don't want to take on board what goes round it. Haven't you had the 'AWS do it...why can't we do that here?' chat with anyone recently?
John Furrier @dvellante should weight in here bc the economics of IT are recasted now but it's a timebomb; he peppered Marten Mickos of @HPhelionCloud on this topic which resulted in a positive debate
Tim Fisher @BoobBoo but I do agree with you - it's all back to hybrid stuff we were talking about 18mths ago.
Chris Kernaghan @TimFisherUK It is disappointing that we are still talking about this stuff @furrier
John Furrier yes he out this awesome video we had great conversation
Marten Mickos - HP Discover Barcelona 2014 - theCUBE
Marten Mickos, HP Cloud, HP Discover Barcelona 2014 with John Furrier and Dave Vellante @theCUBE #HPDiscover
John Furrier @TimFisherUK it's still being talked about bc no one is going to the cloud in masses's on the planning doc in my view; security & networking archit really slowing things down
Vinnie Mirchandani Chris, depends on SAP products - BusinessSuite, BOBJ, B1 still old style
Vinnie Mirchandani If SAP could help shave their economy by just 10% or $ 20 bn a year, I would bet customers would spend $3 to 5 bn of that back with SAP's new products.
Holger Mueller
@dahowlett - If you had to write an epilogue - what would be your Top3 you would comment / highlight / correct?
Dennis Howlett - if It was ME? I'd have said SAP needs to ensure that data center costs get hammered, that implementers get rejigged on working week and better starting templates.
CrowdFather others are saying that SAP is bloated with old tech not aligned with a services driven (API) model. This can easily be fixed bc they have tech chops but need overhaul
Chris Kernaghan @dahowlett @holgermu I would have SI contracts have better defined deliverables that align with business aims. Not simply metrics around FTEs
Dennis Howlett @Crowdfather - that is changing with SAP Cloud stuff as noted by @rhirsch
John Furrier Tthere are 4 types of customers with 12 strategies in book. First takeaway would be to mix and match from that" says Vinnie
Tim Fisher
@dealarchitect you can't have digital transformation without an open & resilient back-office. SaaS solns. to extent force homogeneity - with a focus on SaaS you appear to say IT cannot be expected provide business differentiation & can't support it either
Tim Crawford If I'm reading this right, it sounds pretty prescriptive. Is that what you mean?
Dennis Howlett could you be more specific?
Tim Fisher wrt Digital Transformation - I think so. The rest was a badly worded question I think...:)
Tim Fisher wrt SaaS stuff - esp. multi-tennant offerings seem to force towards standard. Not a bad thing - but it's a tool & has to be used in the right way. This won't solve all problems so it seems limiting to retire tools that aren't seen to fit the new model.
Tim Crawford IT traditionally customized s/w because they could, not necessarily b/c they should. Some level of std is a good thing.
Dennis Howlett Config has worked well for some customers. Check to see how WDAY and NetSuite customers have gone on.
Tim Fisher Don't disagree with either of you - but one size doesn't fit all. Maybe forces new ways to innovate - but for pure enterprise SaaS seems it could end up being mostly clever contracting (SLAs etc) rather than cool new tech - but maybe I'm a cynic.
Tim Crawford Agree that it's not black/white. But rather streamlining into a smaller range.
Tim Fisher But is that good for the ecosystem? Homogeneity carries an element of risk and reduces innovation. That's more likely to kill a software player than anything else IMO..if the thing you are know for isn't relevant - you die. Simple as that.
Tim Crawford Not saying one-size-fits-all. But ecosystem will trump customization opportunity.
Tim Fisher Ah, the simplification goal of buy not build - where the ecosystem is so big someone has always thought of what you need and is offering it for sale...even if it happens - doesn't that just make sure the economy stays bloated and out of control?
Roland Bullivant
What impact do you think SAP's 'Run Simple' initiative will have on their market and how well will it be accepted by their customers and partners?
Holger Mueller Too early to tell. More product has to be built / released and sold and implemented.
Vinnie Mirchandani agree - think SAP is thinking product centric, the bigger opp is around their products in the customer site, partners etc
Dennis Howlett
Qu to all - anyone dispute the $200 billion pa that Vinnie claims?
Chris Kernaghan As an ecosystem total value? - I think it's more than that if you factor in SME SAP customers
Holger Mueller An old 'law' in the on premise world was that for every SAP $, partners would make 7. So yes, probably close.
Vinnie Mirchandani if I had included amortization, full rates of outsourcers etc could easily have got to $300 bn a year
Vinnie Mirchandani what was the point. The model is only one chapter because I wanted to profile root causes and customer strategies a lot more
Holger Mueller
Did @jonerp save the bacon using @Google #Hangouts? +1
Dennis Howlett He did...awesum tech support as usual
John Furrier you can expand the video out in separate window
Dennis Howlett @john - can you grab control and do that for us?
Holger Mueller And his static pic looks the best! That said - not sure I ever saw him IRL with a tie.
Dennis Howlett
OK folks so we'r struggling with the Hangout piece of this - but here's a link to get you going on how Vinnie is summarising the book: - tech sux eh?
Dennis Howlett Well that sux doesn't it: Try this instead -
Roland Bullivant
thanks for the chat/google+ session very informative and a great insight into the SAP market as it it and where it might/should go...
Dennis Howlett You're very welcome Roland - we could have gone a lot longer but that will be for another time methinks.
Roland Bullivant thanks, need to sign off now!
Dennis Howlett
Right folks - if you're on this chat feel free to drop a question.
Holger Mueller When is Vinnie going to write the same for @Oracle @Salesforce and @Worday ?
Dennis Howlett @holgermu Good question...will get this one in.
Holger Mueller Ok what is his next book?
Dennis Howlett @holgermu Not about enterprise software !!