SAP Gets Serious About The Large Enterprise Application Cloud:
Its Long-Term Strategy Should Involve A Triple Platform Play For The Cloud
Until now, it looked like SAP was still trying to balance its existing on-premises licensed business with the cloud alternative. But following its acquisition of Success Factors and the arrival of that company’s outstanding CEO, Lars Dalgaard, SAP has become really serious about applications in the cloud, placing Mr. Dalgaard at the head of a 5,000-person development team.
SAP’s new cloud strategy is all about business applications in large enterprises. SAP today announced its People, Money, Customers, Suppliers strategy — a significant move to offer business applications for large enterprises, rather than just SMBs and a few niche cases. It’s really targeting its core business users. Today’s announcements show SAP combining its core strength of large enterprise applications with a ready-to-use cloud strategy for the first time.
What is really mission-critical in this transformation of SAP and its global customer base?
1. Cloud-generation business applications.
Software-as-a-service (SaaS) applications are not just rehosted traditional applications. SAP is still on a learning curve, and the infusion of Success Factors will definitely help. The upcoming generations of enterprise users expect their applications to be simple, collaborative, mobile, and very different from what they (and their moms and dads) have used in the past. SAP key’s challenge is to keep their existing, conservative customer base happy while meeting the requirements of (and signing deals with) this new generation.