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SAP Is Floundering in the Cloud

SAP CEO Christian Klein’s statement at the DSAG Annual Congress 2023 in Bremen proves that he wants “cloud only”; however, he has no concept behind it. Because “cloud only” does not mean that everyone is in the cloud; rather it means that there is only one version of it.
Peter M. Färbinger, E3 Magazine
September 21, 2023
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This text has been automatically translated from German to English.

Native, first, and singular

The success of many cloud providers lies not in their choice of operating model (cloud computing), but in the fact that they offer only one version of cloud software, providing immediate added value for all users. A good example is Workday's people management software. All users work with the same release, the same version, which means any improvements to said version directly benefit all users. Evaluations such as employee turnover and what can be done about it can always be carried out on the anonymized total workforce.

As long as SAP does not manage to lead customers to a uniform software release, any discussion about the operating model is also invalid. Added value for the community of SAP customers can only result from a singular software architecture. Whether these ERP systems are then connected via cloud, or are themselves already in the cloud, is completely secondary.

Monitoring and CCC/CCoE

The DSAG is the German equivalent of the ASUG; the abbreviation stands for the German-speaking SAP user group. In his keynote address, DSAG board member Thomas Henzler got to the heart of the problem in SAP's cloud theme: he expects a cloud system to run smoothly for the end user, and not for it to be another piece of software that has to be monitored through cloud ALM and other tools. Why go into the cloud if the user has the same effort as with an on-prem system?

Based on SAP's current understanding of the cloud, however, a cloud ALM is indispensable as the successor to SolMan. However, this results in another requirement from Thomas Henzler: a Customer Competence Center (CCC or CCoE) is just as necessary for a cloud operation as it was obligatory for on-prem installations. Cloud computing also requires an SAP Basis team. Note: in 2024, E3 Publishing will once again be holding the CC Summit in Salzburg with all topics relating to SAP Basis for on-prem and cloud.

Composable ERP

Anyone who discusses cloud computing cannot avoid the topic of platforms, meaning the Business Technology Platform (SAP BTP) was the focus of many discussions at the DSAG annual congress, as well as the possibilities that such a platform establishes: namely, composable ERP. Visitors found the buzzword BTP at many a partner booth. The offers ranged from security, authorization concepts, and compliance on the BTP to applications such as electronic invoice receipt as a BTP app.

Some SAP customers have already recognized the possibilities and opportunities of BTP and have become more active in utilizing it. In the early phase of BTP evaluation, however, just as many users still require guidance. On February 28 and 29, 2024 in Heidelberg, E3 Publishing will be hosting a Steampunk and BTP Summit.

A composable ERP on a BTP is certainly still a long way off. However, a discussion about an S/4 successor should be taking place now. This would also help to refocus the ERP discussion on business processes and free it from operational issues such as licenses and operating models.

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


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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.