SAPPHIRENOW 2012 Orlando – Day 2 – Cloud, HANA and Mobility


My initial idea was to write an update for each day after the session – but after the first day, that plan did not work out. So here I am finishing this post in India., while fighting jetlag. Day 2 of SAPPHIRENOW was a lot more chaotic for me than Day 1 for sure. The day started with Jim Snabe’s key note, including Lars Dalgaard’s presentation on cloud at the end.

Right off the bat – Lars brings a kind of energy to SAP that is usually only seen with Bill McDermott on stage. Lars came across as confident, positive and strong in my opinion. I was also mighty pleased to hear that SAP and SuccesFactors implemented all of each others cloud solutions internally in few months. I had a chance to meet Lars with my blogger buddies. He is an amazing guy with a laser like focus on details. Jon Reed did an outstanding job in that meeting, and came in well prepared with a comprehensive list of questions for Lars.

Here are some highlights of what we learned
1. Lars had a chance to kill Business By Design if he wanted to. But since he thinks the only missing part for the product to be succesful is a good go to market strategy, he decided to not kill it.
2. There is an opportunty for SI partners in cloud space, and he is looking forward to working with them.
3. He thinks HANA is the best thing that could have happened to cloud portfolio, and he will be using HANA extensively in his products.
4. Engineers from SAP and SFSF are being integrated now

As expected, Jim did a solid job on his keynote.It started with a video on SAP history. Funny part for me was Josh Greenbaum saying R/3 was an open platform or something such, and the guy sitting next to me watching the keynote choked on his coffee. So things started on a light note for me.

While BByD will continue to exist as a suite, parts of it will also be offered as smaller point solutions – like for Finance. I am on the fence on this strategy. SAP is a late entrant to the cloud market, and needs a strong differentiating message for its cloud portfolio. I think they could do one of two things – or even both.
1. Create horizontal solutions which cover large number of customers – for example, Collections and disputes management in cloud, with integration to BByD or On-premises FI-AR.
2. Vertical solutions for SAP’s industry solutions that cover the business partner network – like say dealers for automotive, or insurance agents for insurance companies.
I am looking forward to see how SAP differntiates in cloud going forward.

Jim also envisions the world will move in a few years to putting all the data in main memory. I beg to differ on this as well – I seriously doubt disk will get replaced soon. Later,I was happy to see Hasso’s vision is that of hot storage on main memory, and cold storage on disk . Of course, Jim could be totally right – and I am looking forward to seeing how this will unfold in the market with customers. I did a gut check with a few that were in the convention center – and none of them seemed to think all data will ever sit in main memory.

After the keynote, in a private blogger meeting – Jim discussed the future of HANA. BW on HANA is the next big thing on his mind to get traction in the market. I readily agree – since it is low risk and high reward for customers. Also – most BW systems are small, and SAP already has proven that HANA works with 100 TB, when the largest BW instance in the world is only 80 TB.

However, there is a big issue in making this work – and that is the sales enablement. BW has 17000 or so installations worldwide. If SAP has to hit 10% of the market in 2012 that Jim thinks they can hit – they need to close more than 10 deals every working day for the rest of the year. As I have mentioned many times before, the partner ecosystem has been largely shut out of HANA so far for many reasons. It is getting better now, but not to the extent that between SAP and Partners, 10 deals will be closed every day.

However, when we met with Bill McDermott – he did not define the challenge as 10% of existing market. His minimum goal is to double the revenue they got last year out of HANA and Mobility. That I think is an achievable target, and will not need 10% of the BW instal base to be converted. Bill did clearly mention that it is a bare minimum goal, and that he fully expects to beat that target.

Another difficulty with expediting the HANA sales process, according to SAP executives like Lucas, Enslin and Snabe, is the availability of hardware in quick time to do POCs. If SAP can put HANA on the cloud and ensure data security, this is a problem that will go away quickly. Customers can migrate HANA from cloud to a physical box, as HW gets delivered. Hacking the installer to put it on cloud is very easy – so hopefully this stops being an issue.

Jim did mention something that picked my interest a lot. His vision is an 8 day migration of a BW HANA system. Apparently SAP is working with some SI partners on migration factories where a customer can ship BW systems to be upgraded and sent back. I am not convinced this is workable in the field.

1. Most customers run a 3 system landscape for BW, and each will need to be upgraded.
2. Shipping them to India is not going to be easy due to security concerns on data
3. Very few of the 17000 are on 7.3 version which is needed for BW on HANA. It is not realistic to have an 8 day upgrade to both 7.3 and HANA.
4. Migration directly depends on quantity and quality of data in the system. If the system has huge data, and customer only has a short weekend window to migrate the data in production- it will be a challenge. Either they will have to archive a lot of old data, or they will stop migrating and just stand up a new system with just high value reporting.

But Jim’s vision is the right one to have despite all of this. If HANA is to become a volume play for SAP, they need to find a way to accelerate sales and implementations tremendously.

Another interesting couple of tid bits while we are on the topic of BW on HANA

1. John Appleby found out from one of his meetings that 3.x objects do not need to be converted for BW on HANA. They will work ok, but will not have the ability to take advantage of HANA. I did not know this till John told me on Tuesday. SAP could do better with communications.

2. How will BW (and eventually Business Suite) enhancements work in HANA? The enhancements are today done in ABAP server, and typically uses a row by row processing technique to process data, as opposed to set processing. So essentially they cannot make use of HANA’s power, and will become a bottleneck in performance. I asked this question to Hasso and Vishal on Wednesday afternoon, and they did not have a clear answer. Rewriting them manually into some kind of stored procedure is not easily accomplished due to volume of enhancements in a typical ABAP system. I am waiting for SAP to give us an answer to that.

We also spent considerable time with Sanjay Poonen, who heads D&T, Mobility and Apps. Sanjay is big on mobility ever since he took over that portfolio, and is very optimistic about SAP’s chances. He took our feedback to heart last time and was instrumental in getting developer access sorted out to a great extent. Afaria on cloud is a tremendous value proposition for SAP if the price point is really low. On Apps side, they do need to woo many more developers to make it work. But with open technology partnerships announced for Sencha etc – SAP has a shot at making money on mobility.

In my mind – for SAP to succeed in cloud and mobility, they have to immediately address one thing. That one thing – often ignored – is APIs. SAP needs to be good at APIs if it has to attract non-SAP developers to work on mobile and cloud solutions. And it is an easy target for the existing couple of millions of developers in SAP ecosystem. It is low hanging fruit in my opinion, and ripe for plucking. If I might go on a limb and make a suggestion to SAP – that would be to let Craig Cmehill form a team and evangelize that with the developer community. He is already a rock star with a big fan following, and will be readily able to hit the ground running.  Of course, some one at SAP needs to check with Craig first to see what he thinks of this 🙂

Day 2 was also a big party night – starting with Global Comms reception. After spending a few hours there, and catching up with several mentor buddies , I skipped over to the IBM party a few doors away. I was amazed to see how many customers were interested in Mobility and HANA and wanted to start projects on it. And then we walked back to Hilton at the convention center late at night, led by Mike Prosceno. There is an unconfirmed rumor that we passed the peabody hotel twice in the process !

SAPPHIRENOW 2012 Orlando, Day 1 Wrap – speed, simplicity, personalization


SAPPHIRE is a week of sleeplessness and schedule conflicts, and this time is no different.  Right up front – Big thanks to Mike Prosceno, Stacy Fish and Andrea Kaufman for the excellent meetings they arranged for bloggers. Today’s agenda included meetings with Rob Enslin ( who heads global sales), Sanjay Poonen (heads Global solutions) and Steve Lucas ( heads D&T), and of course the big key note from Bill McDermott, the Co-CEO.

Enslin used to be CEO of North America, but it was my first time ever meeting with him face to face, although I have seen him doing keynotes etc many times. He knows the pulse of the market – and is aware of the challenges SAP has to over come to make it a successful year.  Between him and the current North American CEO – I think SAP sales is in North America has the best leadership they can have. I enjoyed the meeting a lot – since he gave answers to the point. My big question for him was what he sees as the future of SIs since SAP seems to be doing mostly a “productize the consulting” approach. Rob did not deny that, but pointed out that it will take some time to truly productize – and even at that stage, the need for business consulting and integration does not go away.

Next up was Steve Lucas, and he is some one I know well. Here is a photo of Steve with his IBM branded HANA box.

Steve recognizes that HANA is young, but his main message is that HANA is still one part of a portfolio of database products. So SAP can offer RDBMS solutions too for the clients who need them.  And to his credit, he did not reiterate the “we will be number 2 DB vendor by 2015” mantra this time. I believe they will stick to the “fastest growing DB” message.

Both Enslin and Lucas emphasized that time taken for hardware delivery is a big problem for HANA sales as it lengthens the sales cycle. I think this can be somewhat solved by deploying HANA to cloud, which is fairly easy to do. You can always migrate to physical hardware once you have it. But a lot of work on HANA can be accomplished just by having it on cloud. As far as I know, the only way to do this today is to hack the installer – but that is an easy problem to fix.

I would also hope that in Hasso/Vishal keynote, SAP will do something about the HA and DR scenarios for HANA. It is a question every CIO will ask before HANA can be deployed in production. My proposal is simple – while the keynote is in progress, they should just pull the power plug of HANA box and show HA will kick in.

Next up was the meeting with Sanjay Poonen. Sanjay is also someone that I have known for some time, and is an absolute straight shooter. He is a perfect example of the “new SAP executive” who not only asks for external feedback, but also acts on it in a time bound fashion. He is already making progress on developer enablement and licensing , and we should hear some details soon.  Sanjay’s approach is to think big, and not be reactive to competition. I got the feeling that his biggest priority now is Mobility. He is working on simplifying how SAP mobility works on all dimensions. I will be keeping an eye on this, as I believe this is a huge market for SAP to dominate if they get it right.

And then there was the keynote. It started off well – with some awesome music. That music is by far the best opening I have ever heard at any SAP event. But all the good vibes I had at that point vaporized in a hurry once Mika Brzezinski came on stage and started asking for who in the audience are democrats (ans – a minority) , and who are republicans (ans – a huge majority) .  And from then – it was kind of downhill for me personally, and I tuned out completely for next several minutes. If she had a brand of humor, it was not one that I recognized. In general – I think this part of the keynote was a waste of time.

And then Bill McDermott entered the stage in a sharp suit, and did a very “presidential” speech. If he runs for political office, I think he will do very well. He definitely is a talented speaker. His main message was that today, it is a world of consumers – and that mobility solutions are the way to get to them. He sees a massive market for that. He also gave plugs to HANA ( biggest thing that happened in Big Data  – which is quite a stretch I would think) and Social (which is very well deserved for my buddy Sameer Patel, the new GVP for Social at SAP).

The big takeaway from Bill’s speech were that business should aim for speed, simplicity and personalization. And I thought he was spot on. I am waiting to see how SAP solutions will evolve to cater to their CEOs vision.

The best part of the keynote for me was the customer panel that included Burberry CEO Angela Ahrendts, Ace Hardware CEO Ray Griffith and Coinstar/Redbox CEO Scott Di Valerio.  I would highly encourage you to watch the fascinating panel discussion on video from SAP’s site. The CEOs seemed to love HANA and mobility and social. But if I understood them correctly – their experience with SAP software  is mostly (if not only) in the business suite. HANA, Mobility etc sounded more like things they like for the future, and not something they are already doing in the present.  It is rather ironic that despite Bill talking mostly about new generation technology solutions – customers are still only exploring the business suite which has been around for a while.

In between all the blogger meetings, I did get some time to spend at the IBM booth demonstrating our cool HANA based solutions to customers, partners and analysts. Our innovation center did a tremendous job building all this out, and I would shamelessly shout from rooftops to encourage everyone to check out the solutions there in next 2 days.

It is 2 AM here, so I am going to stop here for now, and get some sleep. Tuesday is a big day, and I am looking forward to learning more about SAP’s plans.

SAP SAPPHIRENOW 2012 – some expectations


The annual pilgrimage to SAPPHIRENOW is only a couple of weeks away from now.  SAP CEOs have announced a five pronged strategy that includes mobility, analytics, database, cloud and apps.

Right off the bat – I am not a fan of this “5 market” strategy, given the “kitchen sink” approach. SAP just comes off as trying hard to be everything to everybody, and does not give the impression of having a value proposition that differentiates them. SAP has clear leadership in Apps and Analytics, and has a fair shot at databases. Cloud and Mobility are not in that league yet. Consequently, I am just looking for SAP to clarify its plans for mobility, cloud and database.

Nearly every time I have asked such questions, SAP has kindly responded to me with answers – usually GREAT answers. Sad to say, it was always under NDA and usually that did not get lifted in a useful time frame, and sometimes – like with HANA questions I asked in my blog – the NDA was NEVER lifted. So I hope this time around, SAP does the needful on that front so that I can share with you folks what I learn.

Database

Yes we know HANA is the next best thing to …well, everything 🙂 . We know it is fast for sure. So what more should SAP say and do?

1. Can SAP show during the keynote that it has great DR/HA features? As in –  can Hasso/Vishal pull the plug on the box while keynoting and show us nothing will happen to the data?

2. Now that BPC etc runs on HANA – can Bill and Jim come on stage and show how they run their business on HANA? May be simulate an ops review with their team for 5 minutes on stage?

3. Has SAP figured out more business apps on HANA that make sense for broad customer base?

4. What is the current thinking of going after “we will be the number 2 DB vendor by 2015” ? Is that still the goal? or like how Vishal explained in the San Francisco meeting few weeks ago – will SAP shift messaging to become the fastest growing DB vendor?

5. How will all the DB offerings work together – like IQ, ASE, HANA etc? Why should customers take SAP seriously in DB?

6. How many start up companies have come forward to use of the multi million dollar fund SAP announced in San Francisco event last month?

Cloud

All eyes will be on cloud, especially with the SFSF acquisition. I saw Lars Dalgaard presenting at DKOM in Santa Clara, and he is full of energy, and is very different in approach from what I have typically seen of SAP executives. I am looking forward to how SAP makes use of his talent in the big stage. OK, so on to questions

1. What is SAP’s differentiating message for cloud? For being a relatively late entrant to the business – what does SAP tell customers to convey that they are not just a “me too” player in this space?

2. What does SFSF acquisition mean for SAP customers and SFSF customers?  What changes for them?

3. Since we know Lars Dalgaard is the new leader for cloud, what does that mean organizationally? How does SAP ensure architecture and product consistency across all its offerings if Cloud has its own separate team?

4. What is coming up in near term as SaaS offerings from SAP that customers can buy?

5. As an outside coming in to SAP leadership team, what does Lars think of SAP’s cloud performance so far? What is his vision of how SAP should move forward in cloud, and with increased speed?

6. What is in it for partners and developers in the cloud business?

7. Will SAP’s cloud offerings on mobility be made free?

8. What is SAP’s strategy for collaboration with multiple products now in portfolio?

Mobility

With Sanjay Poonen in charge, I do think mobility will be a great area for SAP going forward. SAP made some good partnership announcements with phonegap,Sencha etc which is all good. And now on to questions

1. What is SAP’s message to mobile developers? I think that message is best delivered by Sanjay Poonen, and I hope Sanjay does a keynote on this topic.

2. Having announced the storefront last year, how is SAP doing on that topic? How many apps are there ? how many have been sold ? How many are working on all devices?

3. Last year we heard developers have to make use of SUP if their wares have to be sold via SAP store. But with newly announced partnerships with Sencha etc – obviously that does not make sense anymore. So what is the story now?

4. HANA had a big VC fund announced by SAP. Will Mobility also have a similar fund?

5. Will mobility be a platform play or an apps play? or will SAP do both?

6. I know I am not the only one with this question – what is John Chen’s role at SAP now? I have hardly heard anything from him in public while SAP made announcements on DB and mobility.  With the emerging focus on Asia, John is probably best used to grow the business there. But all the same – I am very curious on what is his role now.

If you have additional questions for SAP, pls leave a comment and I will try my best to find answers while I am in Orlando.