Wednesday, August 31, 2016

SAP S/4 HANA – the numbers and the business case – diginomica

By Den Howlett (diginomica) - "So much has been said and written about SAP S/4 HANA it is almost passé as a topic of conversation. But there have been two consistent themes that have concerned/confused readers, analysts and customers: 
  1. What do the numbers mean? 
  2. How does the business case make sense? 
In SAP’s defense, the answers to both those questions have been available, they’ve just been hard to tease out in a coherent manner. So it was with that in mind that I was given the opportunity to discuss these points directly with Markus Schwartz, SVP and general manager, S/4 HANA.

We spent a good amount of time on the numbers and the following is what I was told. 

Implementations rather than sales 

Schwartz starts from the point of view that implementations and go lives are the most important indicators but we cannot avoid discussing the top line sales numbers that are announced during earnings calls. So, to re-iterate on those: total S/4 HANA deals stood at 3,200 at 30th June, which includes 500 adds in the quarter. 

SAP says that 40% of deals are coming from net-new customers which SAP defines as those who did not have a previous SAP, ERP implementation. We can confirm from conversations at SAPPHIRE and field inquiries that there are a surprising number of what I would term SMBs picking up S/4. These are not global companies who made their vendor choice many years ago. 

My sense is these new finds are companies that believe they would otherwise outgrow BusinessOne or Business ByDesign relatively quickly so are making their decision for the very long term." Read more...