SAP’s Co-CEO Answers Forrester’s Questions At Sapphire

Duncan Jones

Here at the European half of SAP’s global customer event, I had a chance to ask some questions of one of SAP’s co-CEOs, Jim Hagemann Snabe. Unfortunately I didn’t have time to ask for some advice to my country’s leaders on how to manage a two-party government, because it seems like he and Bill McDermott are very happy with their own coalition.

It's very encouraging that Hagemann Snabe, along with other SAP executives I’ve met here, acknowledge that SAP has made missteps over the last year or so, although they are still very confident that they know how to fix the company’s problems. There’s a thin line between positive spin and misplaced over-confidence, so hopefully, in private, he recognizes the challenges he faces. Still, I’d like to see more willingness to accept that SAP doesn’t have all the answers and to get advice from outside the organisation, to help it become customer-centric instead of sales-transaction-centric

Both CEOs want to talk only about new revenue opportunities: increasing SAP’s addressable market, the potential of new on demand products including Business ByDesign, and mobile solutions based on the proposed Sybase acquisition. I asked Hagemann Snabe to explain how he’d improve the value for money that existing customers will get for their maintenance revenue. He mentioned the introduction of customer choice between the Enterprise and Standard support offerings, although that isn’t much of a choice since CPI increases on the latter make it cost almost as much as the former. He also stressed the importance of the ‘Innovation without disruption’ enhancement pack system, which will now be delivered in one simultaneous release each year, across all product lines. 

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SAP Shares Key Customer Initiatives: How Firms Drive Towards Real-Time, Mobile, And Sustainable

Liz Herbert

At SAPPHIRE NOW 2010, SAP's annual marquis customer event, SAP Co-CEOs Jim Hagemann Snabe and Bill McDermott share insights into how companies strive to align IT strategy with business goals. Three themes: 1) real-time 2) unwired and 3) sustainable.

  1. Real-time. Enterprises need information more quickly; daily, weekly, or monthly updates rarely suffice. At the same time, the amount of data that companies now have available to them is astounding.
  2. Unwired. Firms are increasingly leveraging mobile so that employees, customers, and partners are no longer bound by their IT systems and hampered in decision-making but instead empowered with information and decision tools anywhere. (SAP's acquisition of Sybase adds to their capability in mobile.)
  3. Sustainable. Not just goals towards green and reduction of carbon emissions, companies also want to make sure they get leverage out of their investments; today's technology decisions must make long-term sense on the IT strategy path.

Most organizations who speak with Forrester struggle to balance business goals such as real-time information, mobile access, and sustainability with cost pressures and management of existing IT investments. Firms strive to get the most out of their existing IT investments while balancing investment in newer technologies -- such as analytics, mobile devices, or GRC solutions. Increasingly, IT departments are also facing another challenge -- as businesses can easily go outside of IT to buy and often self-provision new tools to achieve their goals: SaaS and Web 2.0 solutions and mobile devices such as iPads or BlackBerrys.

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Your IT Organizational Model Is SO 2009!

Sharyn Leaver

Is it me or do you feel like everyone is restructuring their IT organization – or at least talking about it? Chatter among CIOs often turns into a debate over the merits of plan-build-run models versus demand/supply models – or any other IT model du jour. So, I was eager to get my hands on the first draft of Marc Cecere’s  presentation on “Future BT Organizational Models” that he’ll be delivering at Forrester’s IT Forum in Las Vegas (it’s next week, so I’m up to my elbows in draft presentations – reviewing our CIO analysts’ content, pushing their thinking further, and frankly reveling in all the new research). Here’s a sneak peek:

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Ask Rymer: Let's Figure Out How Apps Are Changing

John R. Rymer

Monday, May 17: I'm on my way to SAP's SapphireNow to figure out where the world's largest enterprise vendor is taking its customers after buying Sybase. Is SAP's future mobile apps? Newfangled "in-memory" architectures? Cloud-based apps? Or is SAP just grabbing a database to compete with Oracle's?

I know you've got questions too about the future of enterprise applications -- and not just about SAP's direction. I've had many discussions with individual Forrester clients about the future of applications over the years, but never with everyone. Now, OutSystems and I have come up with a new use of social media to open the doors on a worldwide Q&A on the future of applications.  Visit What's the Future of Applications? Ask Rymer for details.

We call it "social consulting."  Here is how it works: 

1. During the next week, visit the "Ask Rymer" site and post your biggest, baddest questions about the future of applications. We've got to account for change agents ranging from the Apple iPad to Smart Computing approaches to cloud computing to Lean Software to understand the future of applications. And we've got to continue our progress toward software that is designed for people and built for continuous change.

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Sybase Acquisition By SAP - A Great Move

Noel Yuhanna

Recently, SAP announced a definitive agreement to acquire Sybase for $5.8 billion, at $65 a share, a 44% premium over the share's three-month average price. The transaction is expected to close during the third quarter of 2010. Sybase will operate as a standalone unit under the name “Sybase, a SAP Company,” and be run by Sybase’s management team.

Although execs from SAP and Sybase have stressed mobility, real-time information, in-memory, and analytics benefits that come from this acquisition, the increasing pressure from Oracle cannot be undermined. Oracle’s stronger focus of stack level integration and selling around applications, middleware and database, and recent acquisition of SUN has put pressure on SAP.

 

SAP-Sybase Deal Offers A Lot Of Synergies

SAP and Sybase offer many benefits ranging from in-memory technologies, databases, analytics, and data integration to mobility and ILM.

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Co-Authoring In Microsoft Office 2010: Solving For Version Control Issues

TJ Keitt

In the fanfare surrounding Microsoft’s unveiling of Office and SharePoint 2010, the co-authoring capability Microsoft is offering in OneNote, Word, PowerPoint, and Excel stood out. Put simply, co-authoring is the ability of multiple people to work synchronously on a document. Microsoft has built a number of features to make real-time editing work: notification of who is working on the document and integration with OCS to facilitate conversations; locking of sections to editing; and a “save to share” feature that reconciles changes between editors after they’ve finished, to name a few. However, lost in this talk of real-time document collaboration is a more basic need that I believe Microsoft is actually solving (hinted at in the title of this post).

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SAP And Sybase Could Be A Good Marriage In Banking

Jost Hoppermann

Most of us have already heard that Sybase will become part of SAP — or, to be more precise, that SAP and Sybase announced that SAP's subsidiary, SAP America, Inc., signed a definitive merger agreement to acquire Sybase. When this acquisition takes place, there will be various impact areas across SAP and Sybase’s combined portfolio. Rather than discussing this big picture, I would like to focus on SAP for Banking.

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What Survey Questions Should We Ask IT Infrastructure Buyers?

Frank Gillett

Every spring I’m faced with the wonderful opportunity – and challenge – of choosing the best questions for Forrester's annual 20 minute Web survey of commercial buyers of IT infrastructure and hardware across North America and Europe.

Clients can see the 2009 survey instrument here. In that survey, we learned that only 3% of firms were using cloud-hosted servers and that 79% of firms prioritized IT consolidation and virtualization but only 23% prioritized internal/private cloud efforts.

As technology industry strategists, what themes or hypotheses in IT infrastructure do you think we should focus on? What are the emerging topics with the potential for large, long term consequences, such as cloud computing, that you’d like to see survey data on? Please offer your suggestions in the comments below by May 21!

This year, I’m proposing the following focus areas for the survey:

  • New client system deployment strategies– virtual desktops, bring-your-own-PC, Win 7, smartphones, and tablets
    • Hypothesis:  Early adopters are embracing virtual desktops and bring-your-own-PC, but the mainstream will proceed with standard Win 7 deployments
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BI Implications Of SAP-Sybase Deal -- Plenty

Boris Evelson

In this podcast Principal Analyst Boris Evelson discusses SAP's recent announcement on their intention to acquire Sybase. From the business intelligence point of view, Boris breaks down the obvious and not so obvious effects the acquisition will have on SAP's BI and data warehouse capabilities.

 

http://www.forrester.com/role_based/images/author/imported/forresterDotCom/Podcasts/BPA/Evelson_Kobielus_Richardson_Le%20Clair_Transform%20Business%20Processes%20Through%20Business%20Analytics_050510.mp3

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SAP Acquires Sybase – What’s The Strategic Intent Behind The Deal?

Holger Kisker

SAP today announced an agreement to acquire Sybase, Inc. for $5.8billion. Sybase has a broad portfolio of solutions, so the question comes to mind: what is the strategy, the driving force behind the deal? What are the Sybase crown jewels that SAP is after?

The main three assets Sybase brings to SAP are obviously a database, a mobile infrastructure and real-time analytics. Is it the combination of all of these assets or is there a distinct difference between those portfolio elements? Here are some first thoughts from my side on SAP’s strategic intention for the deal:

This deal is not focused on Sybase’s database assets. Why?

  1. The Sybase market share on databases is too small to make a big difference for SAP. Most SAP applications are currently running on Oracle, and there is little appetite in the market for replacement projects.
  2. SAP is Oracle’s biggest database reseller and makes significant business out of this and won’t shoot itself in the foot. Thus they will of course continue to sell and support Oracle, DB2, etc…  Anyways it’s an important element of SAP’s strategy to support multiple databases, but first it means investment to extend this support to the new family member (Sybase’s database is currently not supported!). In the long run, however, it won’t hurt to have in-house database expertise as the market changes and new opportunities will come.
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