SAP goes cloud again - but stronger?

SAP unveiled its adjusted cloud strategy by announcing cloud solutions for four lines of business to manage people, money, customers and suppliers. These are planned to be offered in a consistent way and seamlessly integrated into enterprise resource planning (ERP) business software. It looks like SAP is concentrating on SuccessFactors as a technology base and combined both cloud development teams to a 5,000 people unit.

SAP plans to deliver its multitenant cloud solutions as a loosely-coupled suite of best-of-breed applications. SAP will continue to offer fully integrated suites in the cloud, with SAP Business ByDesign for mid-market customers via its reseller channels and for subsidiaries of large enterprise customers, as well as the SAP Business One OnDemand solution served by certified SAP partners for smaller customers.

SAP announced the addition of its industry-leading global  payroll software as a cloud-based offering integrated with SuccessFactors’ core human resources (HR) solution, Employee Central. The solution is planned to be available in 10 countries, and is today leveraged by a number of strategic partners as a platform to offer business process outsourcing (BPO) services. SAP has more than 200 resources throughout every region in the world to help ensure local regulations and complexities are addressed and updated within its payroll solution. With the addition of global payroll to the SuccessFactors talent management and core HR solutions, SAP intends to offer a comprehensive suite of applications in the cloud to help customers manage their people more effectively along end-to-end HR processes, from strategy to execution.

SAP announced the planned availability of the SAP Financials OnDemand solution, targeted for large enterprise customers to manage their core financials as well as order-to-cash and invoice-to-pay processes. It is planned to be integrated with SuccessFactors’ core HR solution Employee Central. In addition, SAP intends to deliver a new release of the SAP Travel OnDemand solution with additional integration and mobile capabilities, including the ability to capture and process expenses directly from a mobile device.

The SAP Sales OnDemand solution, with new innovations now released quarterly, goes beyond the outdated capabilities of existing cloud-based sales force automation tools by delivering new marketing and social selling capabilities, new configurability and customization tools, and new integration to on-premise SAP® Business Suite software, including the SAP® Customer Relationship Management (SAP CRM) application.

SAP today also announced the general availability of the SAP Social Customer Engagement OnDemand solution to help companies engage intelligently with their customers via social media such as Facebook and Twitter as part of their multichannel approach for both marketing and service professionals.

Netweaver and the cloud

SAP announced today the planned availability of SAP NetWeaver Cloud as its unified platform-as-a-service (PaaS) offering. It is intended to be powered by SAP HANA with application design and runtime capabilities, as well as a rich set of services that are planned to include security, mobile and collaboration. SAP today also reaffirmed its commitment to openness by announcing its partnership with leading third-party PaaS offerings, including VMware Cloud Foundr, that customers will be able to use together with platform services from SAP NetWeaver Cloud to extend SAP solutions.

Bottom Line

SAP tried to win the cloud with its own team for years - and tries again with Lars Dalgaard's troops from the acquiered company SuccessFactor. Looking at the financials developing and selling a complete business suite was not a good idea. Customers want to buy the software and customize it. Security, availability and a lack of trust etc are strong arguments not buy SaaS-Suites. On the other hand SaaS solutions are great to fill functional holes and provide instant solutions in a smart way. The future of SaaS-ERP seems to be postponed - but it is not over yet.

Author: Frank Naujoks