Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    SAP Closes One Door, but Others Are Opening

    By
    Lisa Vaas
    -
    November 18, 2005
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      With the impending closure of SAPs maintenance window for SAP R/3, users may be nervous about the prospect of paying too much for maintenance or, even more drastically, about migrating to the as-yet murky unknown of Oracles Project Fusion alternative.

      One things for sure, though: With the growing options for on-demand or software as a service models, customers have a lot more options now, and sticking with legacy software is no longer the given it once was.

      As eWEEKs Renee Ferguson reports, under a licensing structure introduced last year dubbed 5-1-2, users on 4.6C and older systems are facing either a maintenance shutout or a potentially significant support fee hike by the end of next year—a deadline thats getting pretty darn close, if youre talking about something as mission-critical as an ERP system.

      Many users, faced with impending changes in their system support plan, are upgrading to SAPs newer platforms—Enterprise 4.7 or mySAP 5.0, aka ECC (Enterprise Central Component) 5.0.

      But others Ferguson talked to are taking a wait-and-see approach. Oracles entry into the ERP landscape is a big part of that, as it has promised Project Fusion could, within a few years, present intriguing new possibilities for migrating off of SAP.

      /zimages/3/28571.gifR/3 orphans-to-be contemplate jumping ship. Click here to read more.

      So users at this point have a number of options. They can decide to resist temptation to sign up for more expensive maintenance fees and just go ahead and support themselves.

      SAP is desperately hoping they dont choose that option, of course—after all, what vendor wants to have a dead piece of software hanging around their neck forever?

      Then again, users could rethink their overall ERP strategy.

      With the advent of Web services or on-demand technologies, some companies might well decide to scale back on their existing in-house IT software resources, noted Albert Pang, an IDC analyst.

      “Make no mistake about it,” Pang said, “theres intrinsic value that some of the legacy systems can provide to these users. But above and beyond that, a lot of customers might feel, Well, does it make sense to continue to get into this big ball of wax, compared with a smaller implementation, or compared with Web-based type of deliveries, and other software and services available to them?”

      At this point, ERP customers should be debating the pros and cons of running these monstrous systems behind their own firewalls.

      If youre looking at procurement technologies, you dont have to keep using SAP products for that. As long as you find ways to maintain accounting and interfaces to the back end, or the management functions, then on the front end you can use any one of the best-in-breed solutions or on-demand services to do strategic sourcing, contract management or employee self-service, for example, Pang said.

      “I dont think thats such a cut-and-dried situation where a company has no choice but to continue to invest in their legacy systems,” he said.

      There are two things happening that are influencing the opening of choice for ERP customers.

      First, is the affects of globalization, which forces companies to push a tremendous amount of capital into keeping legacy systems running on a global basis.

      Second, even with the existing systems out there, there are just so many pockets of the world that a legacy ERP system or R/3 system can support.

      The more globalized a company becomes, the greater the need there is to leverage the Internet, either with software as services or with on-demand models.

      Payroll support differs both by country and by region, for example. Doesnt it make sense to outsource to a service provider so all you need to do is to make a connection at the metadata level?

      SAP may well come up with alternative methods for customers to get the support they need to keep their R/3 and other legacy systems running. It will be expensive, but its not impossible.

      But given that there are so many options available, and there are so many technologies and service providers that can take up the slack, shouldnt it be high time to recheck the technology roadmap?

      Enterprises can start by looking at the gaps that exist: gaps such as different localization support, different payroll processing requirements, different supply chain-related types of business processes.

      /zimages/3/28571.gifSAP sees integrating processes as key to future. Click here to read more.

      All of these things are changing before our very eyes. Just look at what UPS can do nowadays: The company can set up a warehouse all over the world.

      Why would you want to keep running your own warehouse applications? The same applies to e-recruiting or to payroll processing. These all used to be under the domain of the legacy applications, but thats no longer the case.

      Legacy systems arent going anywhere. But their role most certainly is evolving, and not much can—or should—be taken for granted anymore.

      Lisa Vaas is Ziff Davis Internets news editor in charge of operations. She is also the editor of eWEEK.coms Database and Business Intelligence topic center. She has been with eWEEK and eWEEK.com since 1995, most recently covering enterprise applications and database technology. She can be reached at lisa_vaas@ziffdavis.com.

      /zimages/3/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.

      Lisa Vaas
      Lisa Vaas is News Editor/Operations for eWEEK.com and also serves as editor of the Database topic center. Since 1995, she has also been a Webcast news show anchorperson and a reporter covering the IT industry. She has focused on customer relationship management technology, IT salaries and careers, effects of the H1-B visa on the technology workforce, wireless technology, security, and, most recently, databases and the technologies that touch upon them. Her articles have appeared in eWEEK's print edition, on eWEEK.com, and in the startup IT magazine PC Connection. Prior to becoming a journalist, Vaas experienced an array of eye-opening careers, including driving a cab in Boston, photographing cranky babies in shopping malls, selling cameras, typography and computer training. She stopped a hair short of finishing an M.A. in English at the University of Massachusetts in Boston. She earned a B.S. in Communications from Emerson College. She runs two open-mic reading series in Boston and currently keeps bees in her home in Mashpee, Mass.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×