How SAP Has Quietly Changed Strategy on HANA and Oracle Brightwork. What This Article Covers. The Original Plan for HANAThe Recent Change in Policy on Oracle. Taking a Deep Drink of SAP HANA Kool Aid from SAP Marketing. The Problem with Not Making Sense. How SAP is Underemphasizing This. The Future of HANAWho Was Wrong and Who Was Right Who Got it Wrong Who Got it RightDeloitte, Accenture, IBM, Cap. Gemini, Infosys All Being Wrong on HANAIntroduction. This article will cover SAPs original plan with HANA and then discuss the recent unpublished change in policy regarding Oracle, which says a lot about what SAP has internally realized about HANA and its future. The Original Plan for HANASAPs original plan for HANA was optimistic in the extreme. It was championed by Hasso Plattner, and the plan was so extensive that describing all of it would be its own article. However, in included the following Books Four books written by Hasso Plattner around in memory computing. The purpose of this KBA is to help SAP customers obtain a general idea of potential fixed situations in future Adaptive Server Enterprise ASE EBFSP or PL releases. What This Article Covers The Original Plan for HANA The Recent Change in Policy on Oracle Taking a Deep Drink of SAP HANA KoolAid from SAP Marketing The Problem with. Agenda to Index Click on this box in order to return to the main Agenda slide 1. Introduction to Identity Management Connectivity and Services. About product road maps This presentation and SAPsstrategy and possible future developments are subject to change and may be changed by SAP at any time for any. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained. Marketing and PR A massive marketing and PR push for HANA, what must have been one of the greatest efforts and expenditures in the history of enterprise software. Exaggerated Benefits The proposal of enormous benefits to HANA, some of which are cataloged in the article When Articles Exaggerate HANAs Benefits. The Illusory Concept of Simplification The proposal that because of HANAs simplified model, that HANA would actually massively reduce the complexity of SAP as well as the business processes on projects. The SAP Community is the quickest way for users to solve problems, learn more about SAP solutions, and invent new ways to get things done. Simplification List PUBLIC Document Version 1. Simplification List for SAP BW4HANA 1. Artificially Limit S4. HANA to HANA Here SAP took its best selling ERP system and in the new version, called S4. HANA, limited it only to HANA. This was always an anti competitive move as there was never any true technical reason to perform this limitation. But as usual, the Federal Trade Commission as well as the European Trade Commission were not paying attention and did not step in. The concept was that many customers would migrate to S4. HANA and then they would be forced into purchasing HANA. But that approach has not yet worked out as S4. HANA adoptions have been incredibly low, which is covered in the article, How SAP Controls Perceptions with Customer Numbers. Penetrate and Radiate SAPs had a follow on strategy after getting HANA into the data layer. SAP has all types of follow on databases and products that intended to pitch to customers after they had purchased HANA. One of the issues with HANA is that SAP does not divulge all of the components that are necessary to run HANA when one buys a copy of HANA. The customer finds out about complementary products after they have made the purchase. But secondly, SAP had positioned lagging databases, such as SAP IQ, formally Sybase IQ to perform data archiving for HANA. The argument was going to be that SAP IQ communicated much better to HANA, and this would, the plan went, force out database companies that were actually much better at archival, in favor of SQP IQ. As Oracle had acquired its way into the application layer using its database market share, SAP intended to grow rather than acquire their way into the database layer. In this way, they intended to push Oracle out of their accounts. For all software vendors, you should be on notice. When you sell software into an SAP account, believes they own that account. SAPs move into the database layer was based on inaccurate information. Oracle acquired its way into the application layer. This is something I am not a fan of for several reasons  as acquisitions lead to concentrations of markets, and concentrations of markets invariably lead to less competition and lock in. This lesson needs to be relearned by every generation. But Oracle did have real applications that had real value propositions. So while I disagree with whether Oracles massive acquisition spree should have been approved by the Federal Trade Commission which seems to spend most of its time eating donuts and taking long naps, it was not in itself deceptive. Here is why software acquisitions are in most cases not a good idea for the government to approve. Market Inefficiency Acquisitions are typically made by companies that are dominant in one space. Oracle in databases. SAP in large company ERP. Microsoft in operating systems and office suite. These excess profits are then used to purchase often companies in related areas. However, this results in lower profits. Over half of Oracles profits still come from databases. Three quarters of Microsofts profits come from Windows and Office not XBox, phones, etc. Acquisitions and even growth into non core areas means a decreasing efficiency of the enterprise as bureaucracy increases and the additions are less effective than the core. About the only company that seems to counter this rule is Amazon. Amazon seems to be able to move into anything they do and be highly effective at doing so. They even migrate into areas like AWS that have a higher profit margin than the area they started in online retailing. Market Concentration Acquisitions lead to concentrations of markets, and concentrations of markets invariably lead to less competition and lock in. This lesson needs to be relearned by every generation. But Oracle did have real applications that had real value propositions. So while I disagree with whether Oracles massive acquisition spree should have been approved by the Federal Trade Commission which seems to spend most of its time eating donuts and taking long naps, it was not in itself deceptive. However, SAPs statements about HANA were always inaccurate. The Recent Change in Policy on Oracle. SAPs plans for HANA were so extravagant that they fell into the category of fantasy. I was working through a consulting company several years ago and attended a meeting where several men from SAP came over to educated us on HANA and S4. HANA. What was pitched as an educational presentation became one of the most aggressive sales pitches for HANA and S4. HANA or any other product for that matter that I have ever witnessed. Taking a Deep Drink of SAP HANA Kool Aid from SAP Marketing. Business Objects Integration Kit For Sap Downloads on this page. At one point, one of these highly confident men stated that there was going to be no innovation in SAP outside of HANA and S4. HANA. there was going to be no innovation in SAP outside of HANA and S4. HANA. This is a ridiculous statement, as it implies that no other SAP products would receive any development at SAP, innovation is a euphemism for development. And of course, ceasing all development on all SAP products aside from HANA and S4. HANA would be a very bad, and very illogical move. Yet, it is difficult to overestimate the hyperbole that surrounded HANA, and to some extent still surrounds HANA. HANA took over SAP conferences, it took over the marketing messaging of the SAP consulting companies, with each attempting to out HANA one another. At one consulting company that I was contracted to, a salesperson with an amazing pipeline of HANA deals was brought into the company without checking anything about him, the desire for some HANA expertise was so high that one, but probably other consulting companies would grab any person with HANA on their resume, and at very favorable terms to the resource. On Linked. In, virtually overnight, people added HANA not only to their experience to their job titles. There were HANA Solution Architects and HANA Marketing Specialists. Literally, the SAP community could simply not get enough of HANA The Problem with Not Making Sense.