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SAP Fioneer: Bold Creativity

"Rock-solid engineering. Bold creativity." That's how SAP advertises Fioneer on its own homepage, but will customers now have to pay for Fioneer's expensive deal between SAP and third parties? There's a lot of anger.
Lorenz Müller, HiSolutions
31 July 2023
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This text has been automatically translated from German to English.

At the end of 2019, the SAP Executive Board decides on a project to spin off products, IP rights and technology for financial service providers from the group. It hoped for more independence and dynamism, a "speedboat" that the tanker SAP wanted to launch - according to ex-CFO Luka Mucic. Banks and insurance companies subject to financial supervision can now only purchase the Financial Services Industry Solution products from Fioneer. But 21 months after the spin-off from SAP, the anger of the forcibly affected customers is great.

For existing SAP customers, there are unexpected and expensive changes in the already unpopular topic of indirect use: Fioneer products are regarded by SAP itself as third-party products. Licensing cannot be done via Digital Access, for accesses by Fioneer users there must be additional SAP Named User licenses, although in the S/4 licensing model the LOB and industry solutions are actually based on value-based metrics and do not require user licensing!

The interpretation of the metrics by Fioneer sometimes no longer corresponds to the previous interpretation by SAP, to the disadvantage of the customers. Customers have therefore been persuaded by Fioneer salespeople to undertake expensive relicensing with harsh and repressive appearances. The measurement itself is still carried out by SAP.

Fioneer customers who have not yet agreed on the license conversion to S/4 can no longer arrange this via SAP. Cases with high additional costs have become known - especially when the sales staff of SAP and Fioneer are not pulling in the same direction.

The business of SAP Fioneer developed "clearly above the expectations of the investors," said Fioneer CEO Dirk Kruse last year in an interview with Handelsblatt. He did not mention that the profits were also generated by the practices described. Many customers see this as highly unfair, also because they can hardly defend themselves against it. Is this the "Courageous Creativity" from the Fioneer company slogan?

Professor Hasso Plattner has since sold his foundation's 37 percent stake because public criticism of possible conflicts of interest became too great. Perhaps he, the great patron, philanthropist and founder, no longer wants to be associated with such practices. What can SAP Fioneer customers do - besides remaining vigilant and actively dealing with these issues? Exchange and consultation with the DSAG topic group "License Model in Banks and Insurance Companies" - exchange among themselves and, if necessary, support from lawyers versed in these issues as well as advice from reputable and experienced SAP and Fioneer license consultants.

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Lorenz Müller, HiSolutions

Lorenz Müller is SAP SAM expert at HiSolutions


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork. All information about the event can be found here:

SAP Competence Center Summit 2024

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
A-5020 Salzburg

Event date

June 5 and 6, 2024

Regular ticket:

€ 590 excl. VAT

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
69115 Heidelberg

Event date

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.