SAP's Free Add-ons?
Traditional data center vs. cloud computing
For a long time, SAP was different from the U.S. technology companies. Further growth was to come from the values created and achieved. Each successful step was supposed to lay the evolutionary foundation for the next success. For many years, this metamorphosis was a sign of solid IT craftsmanship. From the SAP founders to CEO Kagermann, SAP grew on its own initiative and with its own ideas. The focus was on a holistic view of SAP customers’ structural and process organization of. The predominant operating model was the in-house data center. The cloud was optional.
What followed was a period of storm and stress with some chaotic cloud acquisitions. One highlight was the acquisition of Qualtrics, a US software company specializing in enterprise feedback management. From 2018 to 2023, it belonged to the German software company SAP. Many companies were acquired during the CEO era of Jim Hagemann Snabe and Bill McDermott, so SAP's current CEO, Christian Klein, is still busy consolidating the many good ideas in the cloud.
Cloud-native vs. best-of-breed
The remaining risk is not found in the numerous acquisitions and takeovers, but rather in the lack of orchestration regarding the SAP community. If something new is to emerge from what already exists and the metamorphosis shapes further growth, then the risk for SAP customers would be minimized. SAP CEO Christian Klein is planning the opposite. He is taking a high risk with cloud and best-of-breed because he is chasing general and arbitrary IT trends.
SAP customers are used to planning many years ahead. Spontaneous IT shows, short-term roadmaps, and short-lived trends are not the focus of SAP managers. In the past, Professor Hasso Plattner was responsible for shocking news and course corrections. Plattner was also sometimes wrong, but he was always quick to reposition his SAP and get it back on track.
RISE and GROW with SAP
AI, RISE, and GROW are the construction sites of a failed orchestration: SAP has no clear plan when it comes to AI. Numerous partnerships are merely an attempt not to lose touch with the international IT community. SAP has promised a lot and delivered a lot. However, very few AI solutions are orchestrated with the needs of the SAP community. AI works at SAP, but the added value for SAP users is limited.
SAP's RISE and GROW offerings are still being improved and fine-tuned. The statements about what and for whom the two offerings are intended and what is truly necessary for S/4 customizing are divergent within SAP and among SAP partners. Cloud computing is an aspiration of SAP CEO Christian Klein, but does not add value for SAP customers. Cloud can have additional benefits for the CIO and reduce certain risks, but in only a few cases is cloud a decision criterion. In the SAP community, functionality, availability and sustainability are what count.
Of course, not everything was better in the past. However, under Dietmar Hopp, Hasso Plattner, Henning Kagermann, Gerd Oswald, in addition to Michael Kleinemeier, Werner Brand, and Claus Heinrich, cohesion and communication was much better, more open and direct. SAP sales representatives are now only the bearers of bad news. Unfortunately, Christian Klein's current strategy involves a residual risk and is not sustainable in terms of AI strategy, or regarding RISE and GROW. A pleasing share price remains a mere consolation prize after the departure of Professor Hasso Plattner.
Signavio and LeanIX
SAP is marketing their current plan—where they are flying blind—as a successful path towards a glorious S/4 cloud future. Investors seem to believe this fairy tale is believed on the stock market, which is reflected in the impressive share price, but the SAP community knows better. It cannot go on like this. Customers are looking for alternatives and SAP is losing relevance, see the DSAG (German-speaking SAP User Group) investment survey from this year. SAP CEO Christian Klein is flying blind, supposedly enlightened by AI, which of course will not happen because AI is just another tool like cloud computing. What SAP's customers need are solutions—digital transformation processes—and not more IT tools. Even free add-ons are just a consolation and not a solution: if Signavio and LeanIX make their way to SAP customers free of charge, the discussion about the relevance of the products will begin again.
