Summer 2024 restructuring announcement was a success for SAP and share price reached all time high.
Will SAP be tempted to repeat the same scenario this summer ?
With the goal to let go all remaining OnPrem solutions that are on maintenance only ?
12 replies (most recent on top)
@vc Agree and it's partly in my opinion because SAP is still tied to OnPrem for maintenance.
The longer it stays in this confusing area (between OnPrem and Cloud) where we sell maintenance on OnPrem but No licenses and marketing only selling Cloud.
The longer SAP stays in this area the harder it will be transitioning fully to the Cloud and finally considered Cloud company.
I guess CK (still) didn't find the right time to push the button.
There are true cloud companies, like Concur and Salesforce, then there is SAP. RISE was a clever marketing scheme to get customers to repurchase what they already owned - the hook was the one time option to retire shelfware. With AI, customers can obtain a lot of the benefits of a cloud solution without foregoing customisations. SAP is doomed.
The incredible board will make sure that SAP will dominate the OnPrem and the cloud business forever and ever.
Trust the board. Follow the board. Obey the board.
SAP can't maintain its OnPrem products forever. No company invests in maintenance !
Big companies invest in innovation and the innovation now is Cloud and AI.
The dilemma that SAP and other companies have is : how to encourage/force OnPrem customers to accelerate the move to the cloud without taking the risk to lose them if they go too hard on them.
The bottom line is customers don't have a choice to stay OnPrem for too long because support of OnPrem will be horrible due of lack of investments and resources which at end of the day will hurt their business and cost them more money...
Google is indirectly entering On-Prem business not into traditional on‑premise ERP like SAP—but into enabling hybrid/on‑prem deployments via Anthos and supporting SAP in the cloud.
https://cloud.google.com/blog/topics/anthos/anthos-on-prem-and-bare-metal-are-now-gdc-virtual?
Two things:
First…LOL at the “Oracle” SE - good for you with your hourly wage. And as for Oracle being the “Number 1” ERP vendor….sure….for what?….loser companies? Talk real logos. The real companies in the world run SAP. The pi----g contest is irrelevant though. But you seem to think in your mind it’s important.
Second: how d-mb are you to think that CKFan is nothing but a troll? They are mocking CK and the board. What a fool you are. Go back to bl*wing Ellison.
Hold up.. you’re telling me that senior managers get paid for On Premise deals, then turn around and judge the AE’s cloud quota attainment… while counting their bonus?
Oracle SE here. 🙏🙏🙏 do it.
Can’t keep up with all SAP replacement opportunities since Oracle announced as No 1 ERP company.
Thank you CK-fan. Our prospect love your posts.
Well...SAP definitely doesn't want to SELL on-prem...but there is still a lot of it out there...and SAP makes a lot of money still from on-prem maintenance. But the goal is to move all those LICENSES to a cloud subscription so that SAP can be called a cloud company. Note that I said they want to move the licenses. Plenty of people have a CLOUD license but still run their stuff on-prem. SAP is really a fake-cloud company. Customers who complain loud enough can still BUY on-prem...BUT if you know the Account Exec comp structure, AE's do NOT get quota credit (and I think they get reduced comp) for selling on-prem.
How does a company even buy Onprem SAP anymore? SAP sales wont even pick up the phone for them. No sales below the GM level are compensated.
Not a chance. SAP still makes a LOT of money from on-prem maintenance...and even with all the fist pumping from Hasso's Pet (CK), MANY MANY customers will NOT go to RISE. On-Prem for many customers is a fact...and they see through the BS. So no...they are not retiring on-prem.
Personally I don‘t know. But you should trust the awesome board to do the right thing.
They know best. Best!