How to Understand Oracle and SAP’s Partnership with HANA

Executive Summary

  • SAP has a long-term partnership related to the Oracle database, which the introduction of HANA changed.
  • What is the difference between the new and the old?

Introduction to SAP & Oracle Partnership Future

The relationship between SAP and Oracle has changed when SAP began competing aggressively with Oracle in databases (for SAP customers, no one appears interested in purchasing HANA for non-SAP applications). Recently, SAP and Oracle announced a continuation of their relationship.

In this article, we will review the old version of the agreement from the new version of the agreement.

The Old Version of the Agreement

“SAP also enjoyed the right to resell to customers a license to use an Oracle database in connection with SAP applications, as well as the right to support the combined SAP and Oracle offerings. SAP and Oracle would like to announce that they have recently agreed to an extension of their Reseller and Support Agreement.

This extension continues the existing Oracle and SAP relationship. For the next three years (through December 31, 2017), SAP customers can continue to acquire Oracle licenses from SAP to support SAP business applications. For an additional period of two years, SAP will continue to provide integrated support for SAP/Oracle applications (through December 31, 2019) and has committed to support Business Suite 7 core application releases through 20125.”

The New Version of the Agreement

“SAP and Oracle would like to announce that they have agreed to a long-term extension of SAP’s global reseller and technical support relationship. For more than twenty years, SAP and Oracle have worked together to provide customers with a supported SAP/Oracle environment, running SAP applications and an Oracle database. During this extension new and existing SAP customers can continue to acquire Oracle licenses from SAP or Oracle to support their SAP business applications, and SAP and Oracle will continue to offer Technical Support for the combined Oracle/SAP offering.”

Adjustments

The question is how much is SAP backing off of its approach of trying to replace Oracle with HANA. SAP is continuing to provide false information to customers regarding compatibility to push out database vendors from SAP customers, as alleged in the Teradata complaint.

“On information and belief, SAP has also more recently begun significantly
restricting Teradata’s ability to access customers’ SAP ERP data stored in HANA for use in Teradata’s EDAW products, thereby ensuring that SAP’s Top-Tier ERP Applications customers utilize HANA (and only HANA) for all of their database needs.”

Conclusion

The new partnership agreement wording is an acknowledgment that SAP will not be able to move customers away from Oracle anywhere as quickly as it initially thought.

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References

http://www.oracle.com/us/solutions/sap/introduction/overview/index.html

https://assets.teradata.com/News/2018/2018-06-19-Complaint.pdf