SAP Counting on Customers to Go All-In on Cloud Migration With HANA
ORLANDO, Fla.—The tale of the large, established enterprise IT vendor in the 21st century is now quite familiar. Enterprise resource planning giant SAP made sure it stuck to the story line at its Sapphire user group conference here this week.
Digital transformation? Check. Modernizing data centers and applications? Check. Having the cloud your way? Check. If you substitute the marketing tag line "S/4HANA is the digital core of your enterprise" for "the year of all-flash storage," SAP could be EMC.
SAP, EMC and the other usual suspects are all saying the same things. They are in the fight for their lives to win and keep enterprise IT customers. That's because they are scrambling for a market that is shrinking and being disrupted by cloud computing.
SAP's effort in the cloud, the HANA Cloud Platform (HCP), "is the key to the company's future—it is that simple," said SAP Enterprise Platform President Steve Lucas. He's right, because the company is all-in on the HANA in-memory platform, S/4HANA ERP applications and HCP. There is no turning back for SAP or its customers.
NEWS ANALYSIS: SAP is counting on its HANA in-memory database to help retain established customers by enabling them to migrate their business-critical applications to the cloud.
As much as SAP and the other established vendors want new customers, the battle is much more about retaining current ones. That is evident in Oracle's cloud strategy. The good news for SAP is its customers don't always have a viable choice of moving to another vendor or provider. ERP is not something you "lift and shift" to the cloud. Customers are "stuck" unless SAP really screws up.