{"id":116598,"date":"2022-07-28T07:33:39","date_gmt":"2022-07-28T05:33:39","guid":{"rendered":"http:\/\/e3mag.com\/?p=116598"},"modified":"2022-08-08T13:05:11","modified_gmt":"2022-08-08T11:05:11","slug":"expensive-cloud-losses","status":"publish","type":"post","link":"https:\/\/e3mag.com\/en\/expensive-cloud-losses\/","title":{"rendered":"Expensive cloud losses"},"content":{"rendered":"

Ex-SAP employee Werner D\u00e4hn, one of the most savvy analytical observers in the SAP community, commented: \"I'm not happy with axiomatically equating public cloud with high margin, because there is an important constraint to that: The cost of each additional customer must be zero.\"<\/em><\/p>\n\n\n\n

Cloud computing cannot be a savings for existing SAP customers on the one hand and a lottery win for SAP on the other. Naturally, there may be economies of scale in a positive sense, resulting in operating costs below those of an in-house data center - but these effects have been familiar to SAP's existing customers for many years in the areas of outsourcing and hosting. Here, there were legendary CIOs who often had lower operating costs than comparable hosters. So the questions Werner D\u00e4hn asks are legitimate: \"If SAP gains another S\/4 customer, does he run on the existing servers? Does it not require any support?\"<\/p>

\"Fullsize\"<\/a><\/div>\n\n\n\n

D\u00e4hn's response: \"The customer certainly generates additional costs - to quite a large extent. To make matters worse, public cloud software has a significantly higher complexity and therefore higher costs. Furthermore, customers are not prepared to pay n times as much as before just to hand over the operation of the software. So reduced to this aspect, SAP does not have a public cloud, but an outsourcing offering.\"<\/em><\/p>\n\n\n\n

Apparently, SAP CEO Christian Klein has a similar view of the situation. To the great displeasure of the DSAG user association, SAP wants to increase cloud subscriptions with a fixed index of plus 3.3 percent annually. Werner D\u00e4hn doubts whether the calculation will work out for SAP. He does not see a significant improvement in margins with a doubling of cloud sales. And the ex-SAP manager says: \"Funnily enough, on-prem is better! Software was created, 20 percent of the list price was collected as maintenance costs per year, and the operating costs were borne by the customer in the form of hardware and personnel. In this model, if the number of customers doubles, the revenue doubles, the costs stay the same, and the margin approaches 100 percent.\"<\/em><\/p>\n\n\n\n

Analysts confirm this on-prem view and have calculated that in the traditional license business SAP has a margin of well over 80 percent. Werner D\u00e4hn concludes by asking the rhetorical question: So what happens to the margin if you abandon the on-prem business and move everything in the direction of the SAP cloud?<\/p>\n\n\n\n

As a clarification, it must also be emphasized that in many cases, existing SAP customers no longer have a choice, see IBP, Integrated Bussines Planning for Supply Chain. This SAP software replaces the well-known APO (Advanced Planner and Optimizer), is much more powerful and functional - but can only be obtained as a cloud offering, see also the E-3 cover story by SAP partner Consilio in the September 2022 supplement of Manager Magazin.<\/p>","protected":false},"excerpt":{"rendered":"

By now, almost every SAP existing customer knows: Cloud computing can also work for SAP Business Suite 7 and S\/4 Hana, but it does not have to be cheaper than on-prem from your own data center.<\/p>","protected":false},"author":2499,"featured_media":72570,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"pmpro_default_level":"","footnotes":""},"categories":[27840],"tags":[39128,39926,35728,39,4256,36985,8855,39824],"coauthors":[19954,40300],"class_list":["post-116598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chefredakteur-blog","tag-chefredakteur","tag-chefredakteurblog","tag-christian-klein","tag-cloud","tag-maintenance","tag-on-prem","tag-peter-faerbinger","tag-pmf","pmpro-has-access"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"thumbnail":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-150x150.jpg",150,150,true],"medium":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",400,180,false],"medium_large":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-768x346.jpg",768,346,true],"large":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"image-100":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-100x45.jpg",100,45,true],"image-480":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-480x216.jpg",480,216,true],"image-640":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-640x288.jpg",640,288,true],"image-720":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-720x324.jpg",720,324,true],"image-960":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-960x432.jpg",960,432,true],"image-1168":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"image-1440":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"image-1920":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"1536x1536":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"2048x2048":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"trp-custom-language-flag":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",18,8,false],"bricks_large_16x9":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"bricks_large":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"bricks_large_square":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",1000,450,false],"bricks_medium":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",600,270,false],"bricks_medium_square":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin.jpg",600,270,false],"profile_24":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-24x24.jpg",24,24,true],"profile_48":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-48x48.jpg",48,48,true],"profile_96":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-96x96.jpg",96,96,true],"profile_150":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-150x150.jpg",150,150,true],"profile_300":["https:\/\/e3mag.com\/wp-content\/uploads\/2021\/03\/ChefredakteurFin-300x300.jpg",300,300,true]},"post_excerpt_stackable_v2":"

Mittlerweile wei\u00df es fast jeder SAP-Bestandskunde: Cloud Computing kann auch f\u00fcr SAP Business Suite 7 und S\/4 Hana funktionieren, muss aber nicht preiswerter als On-prem aus dem eigenen Rechenzentrum sein.<\/p>\n","category_list_v2":"Chefredakteur-Blog<\/a>","author_info_v2":{"name":"abat","url":"https:\/\/e3mag.com\/en\/author\/abat\/"},"comments_num_v2":"1 comment","_links":{"self":[{"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/posts\/116598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/users\/2499"}],"replies":[{"embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/comments?post=116598"}],"version-history":[{"count":0,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/posts\/116598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/media\/72570"}],"wp:attachment":[{"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/media?parent=116598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/categories?post=116598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/tags?post=116598"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/e3mag.com\/en\/wp-json\/wp\/v2\/coauthors?post=116598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}