Tuesday, July 26, 2016

SAP Q2 FY2016, an S/4 HANA take – diginomica

SAP Q2 FY2016, an S/4 HANA take – diginomica: "SAP’s S/4 HANA story is in the early stages of unfolding. Even so, the company gave some good indicators of where it is going that should help in better understanding momentum, even while further questions are left hanging in the air.


Rather than update my initial drive by analysis of SAP’s Q2 FY2016 results, I’m running a piece that talks to the S/4 HANA story. While SAP puts plenty of emphasis on its cloud and subscription model story, S/4 HANA is an important element in SAP’s ongoing strategy. This is because it plays directly to SAP’s ability to move its large, installed on-premises R/3 and Business Suite customer base. First off, some comment on the call. Eagle eyed observers will have noted that SAP changed the manner in which it presents its results. Out goes the tedious and sanitized press release and in comes a set of graphics, charts and spreadsheet style data that should satisfy the most diehard numbers nerd. Also, in comes a different style of analyst call where, instead of the CEO and CFO dog and pony, SAP included Rob Enslin (global sales), Bernd Leukert (global technology) and Steve Singh (cloud and business network.) These people are also members of the executive board. This format made for a much more rounded set of conversations with analysts than is usually the case. I was impressed and felt that it worked well.  But then it’s always relatively easy to run an impressive call when things have gone well." - Den Howlett