Examples of SAP Intimidation of Individuals

Executive Summary

  • SAP has been repeatedly accused of using intimidations against various individuals.
  • We cover other examples of intimidation of individuals by SAP.

Introduction

In the article, SAP is Accused of Witness Tampering in Teradata Lawsuit, we analyzed abuse that was accused by a witness against SAP. This tends to be something that most people do not associate with SAP. However, it reinforces similar claims made by Caroline Olsen in an article written in Jan of 2015.

The Swiss diplomatic services repatriated me from Canada, following acts of organized criminal harassment against me and my daughter. Switzerland was supposed to protect us, open an investigation, and help us to settle in. In this particular context, a visit from a police officer was not unexpected. Except that, after a few conversations with the people in charge of handling my return to Switzerland, it becomes evident that this officer’s behaviour (it’s confirmed, he is indeed a police officer) is very strange; and him showing up at my door has absolutely nothing to do with the repatriation procedure.

It is discovered shortly after that he happens to be related to Léo Apotheker’s family…

The objective of his visit was to obtain private information regarding me and my family; which Léo Apotheker did not manage to obtain by other means. Apotheker’s goal? To use this information to cause me more harm. – SAP Confidential

And also intimidation of Lionel Bieder as explained in the same article.

The only people I am in contact with are Lionel Bieder and Thomas Waldbaum. We speak every day, sometimes for hours. From his webcam, Lionel shows me the the men spying on him at work behind the tinted windows of a black car. – SAP Confidential

Conclusion

SAP heaps this type of abuse on people because it can get away with it. This fear stops many people from speaking out against SAP.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

What We Do and Research Access

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References

*https://studiometamorphoses.com/2016/05/gratitude/

Extracting Meaning from Diginomica’s Interview with SAP CEO Christian Klein

Executive Summary

  • SAP CEO Christian Klein was interviewed by Diginomica.
  • We fact-checked this compliant interview.

Introduction

Diginomica recently published an article where Denis Howlett interviewed SAP ECO Christian Klein. The interview was quite interesting, but only if one reads between the lines. 

Establishing the Nature and Background of the Participants

First things first. Let us talk about who Christian Klein is. 

Christian is the previous SAP Controller and has no technology background of any kind. It is only due to the compliant IT media that they have not observed that Christian has no business as the head of SAP.

Secondly, Christian is 38 years old. Why is a 38-year-old heading SAP when there are far more qualified individuals in SAP for the job? Well…..Hasso needs a puppet as he is not allowed to run SAP due to German law and his advanced age. Therefore he needs a proxy, someone who would never think of challenging him. Christian is “playing” a role, which is CEO of SAP.

In the great movie The Hudsucker Proxy by the Coen Brothers, the board of “Hudsucker Industries” selects a proxy to run the company who is unqualified to depress the stock price so they can then buy it cheap themselves. (The scene stops at the 2:54 mark.)

As the board says in this scene. 

“What we need now is a new president who inspires panic in the stockholder. A puppet, a proxy, a pawn.”

As Paul Newman’s character says.

“Sure sure….some jerk we can really push around.”

This is not to say that the plot of the Hudsucker Proxy and SAP (or really Hasso’s) selection of Christian Klein is identical, and there is no intent to depress the stock price — but selecting a proxy that can be pushed around is the same.

So after we get that out of the way — it is clear that Christian is being fed his lines by others inside of SAP. It is not coming from Christian authentically. Christan might be more credible, talking about discussing cash management.

As for his views on technology — who cares? 

Now let us talk about Denis Howlett. Denis loves to talk to powerful people. Denis measures a comment not on the basis of its intrinsic content (that is, is it true or false), but on the basis of the status and power of the person making the comment. Therefore, if a homeless man describes the law of entropy in perfect detail, but Elon Musk proposes that he developed a perpetual motion machine, Denis’ natural tendency is to disregard the homeless man, and believe Elon Musk. After all, kissing up to a homeless man does nothing for one’s career. 

This orientation of status over what is true is important to building a successful career in serving as a repeating mechanism for the most powerful people. This eventually helps those powerful people become completely self-aggrandizing. As they become more powerful, fewer people challenge them.

Pretty soon they, naturally, consider themselves to be brilliant and specialists in areas of expertise they have no knowledge of very little knowledge. This is why Bill Gates, with no education or experience working in either medicine or epidemiology, is now a source on information on disease, and notice how media entities present him as an expert to their audience. 

This is how Napoleon had himself depicted at the end of his reign. This descent into madness was enabled by a number of people who would never challenge him. This is where we are all headed when everyone around us tells us how great we are. 

So, Denis would not think of asking a challenging question as he is intoxicated when he speaks to the powerful.

Therefore, this interviewer is problematic. If Denis were to interview any powerful person, he would naturally defer to them. 

Now we have set the stage correctly with the context that we have an interviewee who does not have any particular technology background or insight, and an interviewer who is so happy to have the CEO of SAP that he will show complete compliant docility in the interview.

So let us now move to the content of the article.

The Interview Quotations

Here Denis introduces and provides background information to the quotation from Christian. 

As expected, he reiterated the broken nature of the co-CEO model but provided more color on the reasons behind the recently announced change. As I thought at the time, the co-CEO model was difficult to operate when both he and Morgan needed to be on the same page while sometimes having to take decisions on an hour by hour basis. But it went deeper: – Denis Howlett

In the following quote, Christian quickly pivots from the topic of why Jennifer Morgan was removed as co-CEO and from the company to a discussion around hyperscale providers. 

There were disagreements, as you’d expect, but there were some of a fundamental nature where we could not delay the decisions. I’m fully convinced that the hyperscalers will also go up the stack. 

What does the first sentence have to do with the second sentence? Also also, should I begin writing like this? Let see how that would go. 

I think Battlestar Gallactica was a very underrated Si-Fi show, there is no doubt that hyperscale providers are going to go up the stack……and by the way are you going to finish that toast or can I have it?

I guess I could give it a try.

I believe there is a type of writing perfected by James Joyce called “stream of consciousness,” where you just write whatever comes to mind, but its probably not the right writing style for analysis.

There could be two reasons for Christian’s abrupt transition.

  1. One is that Christian wants to move off of the topic of the failed co-CEO experiment.
  2. The other is that Christian has been fed lines that he has to say, and he does not know when to say them. 

And these are not mutually exclusive.

Being uncomfortable and seeking to transition, often leads one to transition abruptly, and hence to a fed line.

Evidence of Christian Klein Being Coached Up

This reinforces what I have proposed that Christian Klein is being given lines to say — and therefore, like reading from a script, if you lose your place, you don’t know how to transitions between topics. 

Let us take a look at a clinic on discontinuous presentation of information. Ordinarily one might think one would have to get a video from a mental health entity that specializes in mental disorders or Alzheimer’s. However, we are fortunate in that in the US we have presidential candidates that demonstrate discontinuous presentation of information. So the material is easy to find. No need to go to the videos at the Mayo Clinic. 

Joe Biden is demented and has to be given notes to read from. Notice in this presentation how he constantly loses his place as he is speaking. There is no continuity from one topic to another, and betting “lost” leads one to change the subject.  

Either having dementia or a lack of authentic understanding of topics you are discussing leads to discontinuities as one is answering questions or speaking on subjects. If you asked me to explain the endocrine system, I would also have to bounce around because I only have a very basic level of understanding of how it works. However, an endocrinologist will easily be able to stay focused and continuous in their explanation of the endocrine system. 

The quote from Christian continues, but as we will see, what is transitions to is not coherent, and the intended information must be teased out of the statement. 

In the partnerships, we are closing, we have to own the business platform, we have to own the application layer. I want to be more prescriptive on that because when you are losing more and more of the control of the customer transformation when you’re not sitting on the table anymore, when they’re making the decision how to transform the business model, then it gets difficult. 

This quote is opaque.

Let us take each area of the quotation in turn.

SAP Must Own the Application Layer?

First, SAP does “own the application” layer for the applications it sells. But Christian’s comment could mean also that SAP needs to own the entire applications layer at a customer. This is, of course, monopolistic intent but would also be terrible for any SAP customer that allowed it. The only reason that companies that use SAP can function is that they either use other applications along with SAP, use custom reports, customize SAP, use Excel, etc.. SAP sells inefficient applications into customers — I don’t know any customers where SAP “owns their application layer.”

SAP often says in their advertisement that a certain number of companies “Run SAP.” 

Who has not seen these types of advertisements at the airport? LPP probably does use SAP, but they don’t use it exclusively, and no one does. SAP does not “own the application layer” at LPP they offer applications that are used with other applications. All companies seek to monopolize the purchasing of their customers. That is why the initial intent of antitrust legislation is to stop companies from building monopolies, something due to corporate capture, we have greatly reduced doing in the US at least. 

The rest of the quote seems to imply that Christian is saying SAP is losing power.

And this is true.

SAP, while still very powerful, is less relevant than it was in the past. Furthermore, SAP is not transforming anyone’s business. I have been in SAP accounts since the late 1990s, and I never one time observed anything being transformed when SAP was implemented. And of course, the term “digital transformation” is an entirely false construct as I cover in the article The Problem with the Term Digital Transformation

Christian’s Real Complaint: Digital Transformation Limitations or Selling Limitations?

The primary issue here is not transformation, but SAP’s ability to charge companies. No one, particularly at the top of SAP, cares about any value delivered to companies, transforming companies, etc… They care about being able to sell software and control the account, and they care about their own personal compensation. That is what Christian is in a way of complaining about. SAP, due to is decades of broken promises, is finally starting to feel a headwind when selling into accounts.

I don’t know what to say to Christian here.

But how long should companies continue to hand over everything to you if what you say consistently does not come true? 

The quote from Christian continues. 

I just want to make sure that now in these partnerships, we try our best to make sure that we are in the lead when it comes to business model transformation, when it comes to talks about how to move the system landscape, the application layer in the cloud. And it’s also important that we position our platform there, as we cannot afford to lose the platform game either, as this is the platform which keeps our applications together, makes the integration work. And it’s of course also very important for the extension of our solution. So, this is something where I would like to draw a much clearer line going forward, because in the past, I feel we were not clear enough in some of these partnerships.

This is a word salad. And furthermore, SAP does not have a platform. They sell applications. And for could, they pretend to offer a cloud, but in fact, they have their partners perform the hosting (i.e. not cloud) though something called the HANA Enterprise Cloud or HEC as I cover in the article Our Comparison of SAP HEC with Virtustream Versus AWS Analysis.

Nothing is “built” on SAP’s platform (unless one wants to include refactoring applications that should not be refactored into ABAP and placing them in SAP). 

Christian’s comment continues. 

We overcomplicate things, and we are not offering good enough holistic solutions for the customer. When you are coming only with pieces and fragments, then it’s hard for the customer to figure out, how do we solve my business challenge? 

Yes, this is true.

As everyone who works in SAP knows is complicated (except to SAP salespeople, who think it is very easy — as they never have to actually log into it). And SAP is complex in every dimension – from the software to legal implications like indirect access, to terms and conditions, to dealing their their legal department, etc.. Even though the SAP Run Simple! the campaign went on for close to two years (as I cover in the article What is the Real Story with SAP’s Run Simple?), SAP is still extremely complicated and Run Simple did zero to change any of that. 

Denis then inserts some comments related to cash management, supply chain, and automotive, which I will not critique here because they don’t have anything to do with anything Christian has said.

Christian then does comment on SAP’s cash management (which is one area he does know something about). However, I did not deem it as worthy of analyzing.

Christian continues on to the topic of supply chain management.

Christian Decides Its Time to Talk About Supply Chain: And SAP’s Customers Want Better Supply Chain Management Functionality?

On the supply chain, we are getting a huge amount of requests from customers to say, how can you help me with more intelligent software to overcome shortages and disruptions in my supply chain, and how can you better help me to find suppliers who can still deliver the goods I need? How can you help me to more flexibly adjust the supply chain to the demand as the demand is heavily changing these days? Demand plans are changing almost on a day by day basis. And these are exactly the points, which we have to focus on.

First, it should be noted how disjointed this comment is from the previous statements. Why did he transition to it, and why the specifics of customers asking for more from the supply chain. What was the point or direction of this interview, because it seems just to be all over the place. It appears I have to put more effort into organizing the interview than either Christian or Denis put into giving or conducting the interview, and it is not my interview.

Discussing the content of Christian’s comments on the supply chain. Immediately, you see the problem with Christian’s statement for SAP. It is that the customers are reaching out and asking for this. CUSTOMERS. Not prospects, customers.

This is because what SAP offers does not help companies in these areas.

SAP promised a supply chain transformation when prospects purchased R/3/ECC/Business Suite/S/4HANA, and nothing all that great happened. ECC is just a transaction processing system that has a few underdeveloped supply chain procedures contained with it called MRP and DRP (like nearly all ERP systems by the way). SAP’s APO has generally failed to meet expectations. IBP, APO’s pseudo replacement (replacing some parts, but not others) have also so far been disappointing and offers little advantages of over Excel with some custom development once all costs and efforts are taken into account. 

But secondly, some of the requirements or requests from customers are not sufficiently specific for me to make sense from them. Demand plans may change day to day, but forecasting systems, including DP (although not Demand Management in the PP module in ERP), can typically account for this. If the forecast is changed through manual adjustment, then this can be done — again not in ERP and most SAP customers do not have APO or IBP. If the forecast is rerun daily, then everything is automatically updated. So I don’t know exactly what is meant by the statement..

“Demand plans are changing almost on a day by day basis.”

I don’t really see the point in including such a high-level description of five different issues in supply chain in SAP and then leaving it at that?

This is the CEO of SAP, who has a virtually unlimited budget to help him prepare for interviews with the media, and we are just getting an information dump of things that he has heard customers have said to SAP about supply chain.

The Obvious Reason for SAP Customer’s Supply Chain Demands  

Overall, SAP misled customers by telling them if they purchased their ERP system they would never need a forecasting system, or that they would get some great supply chain functionality. I have spent decades in both ERP and APO, there is no impressive supply chain functionality in these applications and the usability is the lowest in class in each module or application.

So it is not surprising that customers may be asking for this, but the problem is that they are asking the wrong entity

And no, this is not an endorsement of other supply chain vendors. We may like some supply chain vendors better than others, but the analysis here is simply focusing on what SAP offers in the supply chain. 

Advice on Enjoying the SAP Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

This is typical of IT media coverage is that it is not challenging and functions as simply PR for the company being interviewed. I like reading Christian’s statements because he admits things that he does not realize he is admitting. SAP has spent a lot of time “coaching up” a person whose technology experience prior to taking the top job at SAP was using Outlook and Excel. I look forward to more confused and knowledgable interviews with Christian in the future. As I cover in the article What We Can Learn About Trump’s Inept Advice on Drinking Lysol for Treating Coronavirus, we only apply standards of competence to the lower level people. The upper level or elites can have no background and even no competence, and an army of compliant media, analysts, and other entities will legitimize them with no questions asked.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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References

https://diginomica.com/christian-klein-ceo-sap-we-have-own-application-layer

Why Dictatorial Systems Require The Ability to Censor and Punish Dissent

Executive Summary

  • Dictatorial systems are the norm in giant companies.
  • These systems require the ability to censor and marginalize criticism.

Introduction

In the article What We Can Learn About Trump’s Inept Advice on Drinking Lysol for Treating the Coronavirus, I observed that incompetence is a common occurrence among those at the top of hierarchies. I also observed that the concentration of power has become so extreme, that there is little difference today between elites in “democratic societies” and the monarchial system of old.

This article connects to a related point, which is the necessity to censor criticism of powerful corporations and how it is similar to dictatorial systems of old.

Background on Cults and Dictatorial Systems in Software

Writing and analyzing SAP, and debating SAP resources I found a slavish devotion to Hasso Plattner and other SAP leaders that borders on the absurd.

Hasso had been passing an honorary Ph.D. as a real one, as I covered in this article Does SAP’s Hasso Plattner Have a Ph.D.? Typically being caught faking one’s academic credentials is discrediting, this was defended by several SAP resources, who are of course financially connected to SAP. Hasso Plattner is also a professor of computer science at the Hasso Plattner Institute — at the University of Potsdam in Germany (which he endowed). However, he has no degree in computer science. He also lives on a sailboat for 1/2 of the year, so this is a very bizarre professorship. Just pointing out these inconsistencies if highly offensive of SAP devotees. 

When I exposed the fact of Hasso Plattner’s introduction of himself as an academically credentialled Ph.D., while his degree is honorary, something a few people knew but were afraid to point out, I was accused of having a personal problem with Hasso Plattner by SAP devotees.

I do have a problem with Hasso Plattner, and it is a problem I think many more people should have with him, instead of mindlessly praising him. My “problem” with Hasso Plattner – is that he can’t stop lying, (his fake Ph.D. is only the tip of the iceberg) and in my view, people that constantly lie should be called out for it.

What I wrote can’t be contradicted factually. Oprah Winfrey has four honorary PhDs, but we don’t call her Dr. Oprah Winfrey, as it is well known that honorary PhDs are faux titles conferred as payment to celebrities for making commencement speeches. Furthermore, Hasso has been lying for around 15 years about this topic.

Trying to Find the Right Tone When Calling Someone A Liar

Another critique was that the “tone” of the article was not appropriate.

I am not approved by SAP devotees to use humor in articles. The problem is that once a person’s lies become large enough, they become comical.

For example, Kim Jong Un’s assertions that he works so hard that he burns up the food he consumes internally and does not need to defecate, or that Trump has a “really good brain,” and is one “best memories in history,” are amusing.

However, if I lived in North Korea and critiqued Kim Jong Un, I would be kidnapped and most likely murdered. Let us see what happened to one American for saying far less negative things about Kim Jong Un that I have said about Hasso Plattner.

Otto Warmbier was sentenced to life in prison on North Korea for defacing some political posters.

He was then returned to the US after he had been mortally damaged by his North Korean captors. Apparently life in prison was not sufficient, he had to be tortured to death while in prison. Wouldn’t we like to see the video footage of what the North Korean prison guards of intelligence officers did to Otto?

Once it was clear that Otto Warmbier was so damaged he would soon die, the North Koreans had him sent to the US so that his death would be on the US’s “books.”

An American student imprisoned in North Korea was returned to his family blind, deaf and howling incoherently on a stretcher, his parents have said, in their first interview since his death in June.

Fred and Cindy Warmbier’s son Otto, 22, had travelled to North Korea as a tourist in January 2016. He was arrested and accused of removing a poster from his hotel, and sentenced to 15 years in prison.

Mrs Warmbier told Fox News on Tuesday that the howling sound so terrible she ran off the plane.

“Otto had a shaved head, he had a feeding tube coming out of his nose, he was staring blankly into space, jerking violently,” said Mr Warmbier.

“He was blind. He was deaf. As we looked at him and tried to comfort him it looked like someone had taken a pair of pliers and rearranged his bottom teeth.”

Warmbier was taken to hospital, but died six days later. – The Telegraph

This is considered an entirely normal way to treat people who critique the system in North Korea.

What a great regime.

I don’t want to offend any SAP or North Koreans by critiquing this treatment of Otto Warmbier, as I may not strike the correct balance in my “tone.”

What is the correct tone in any case?

Perhaps I should send my articles to SAP Marketing so that they can apply the correct tone. Both SAP Marketing and the North Korean Ministry of Information can give me some pointers. Apparently, this ministry works in the following way.

The department sets guidelines for all propaganda materials produced and all North Korean media is overseen by it. However, in order to maintain its clandestine nature, actions relating to repression of the media are nominally attributed to the Ministry of Culture [ko]. When newspapers are published in North Korea, they go through three rounds of censorship. The first is handled by the editors of the paper. The second and third levels are taken care of by the department. – Wikipedia

I have a feeling my articles would need a lot of rounds of censorship! Probably more than three.

The Need of Establishment Media to Come Up with More Appealing Terms for the Act of Lying

The major media entities in the US have come up with a tone correction for calling out lies.

They use descriptors like

“Being less than forthright.”

Or…

“Lacking veracity”

or…

“Being less than fully transparent.”

There seem to be a variety of phrases that are used which try to circle around the accusation of saying someone is lying. However, “being less than fully transparent” is an inaccurate euphemism. Lying is just that. A lack of transparency means that the process is not auditable, so the euphemism, when applied to lying, is simply false. This is like trying to recategorize a midget as a…

“Little person.”

A little person can just be a smaller person. A midget is a technically accurate term. A little person is not a sufficiently descriptive term. If a person says a person is a “little person,” I have no idea if they are talking about a small person, a midget or a child. The fact that the term midget is occasionally used in a derogatory manner is not a reason to replace the functioning term with an imprecise term that could refer to someone below 5 foot 2.

 The Problem With Effective Critiques

The real critique around “tone” is that their precious cow is getting skewered, and the critique is effective. When devotees have nothing of substance to say, they point to tone or “personal vendettas.”

My commentary is that a good way to not get criticized is to stop lying.

Stop talking about colonizing Mars (Elon Musk), zero latency databases (Hasso Plattner), and then you will find you won’t be critiqued. But without lies, Elon, Hasso, Ellison, and many other high-status individuals would lose their power. Their power is based upon lies, and the financial control over media entities and PR outfits that align themselves with the superpowerful as part of their business model.

The article The Problem With IDG’s Media Conflict of Interests, all of the information providers in the enterprise software space are in some way financially connected to the mega-vendors. Any of the mega-vendors can declare that the moon is made of cheese, or that they rode on Santa Claus’ sleigh, and the media, consulting, and IT analysts line up to say that it must have been true. 

If one checked the percentage of things that many of these high-status people say that comes true, or that is true, as the site elonmusk.today.

The Power of Lies

This applies to smaller fish as well. Vishal Sikka, an ex SAP executive raised $50 million by making a number of false statements about his knowledge of AI, and what his company would eventually do. We covered this story in the article How Much of Vishal Sikka’s Explanations on Artificial Intelligence is Complete BS.

When kicking off his company, Vishal was treated to an entirely passive interview in the magazine Knowledge@Wharton. Vishal’s statements in the article were ludicrous, yet Knoweldge@Wharton allowed him to make a large number of inane statements unchallenged.

If you look at the history of Vishal Sikka’s statements, if he is not at 0% accuracy, he is very close to 0% accurate. Without lies, Vishal Sikka would have only a tiny fraction of his wealth. Vishal Sikka’s contribution to the economy is I am convinced, a negative, with his wealth being stolen from the work of others.

The Similarity Between Holders of the SAP Status Quo and Supporting Dictatorial Systems

I don’t see the distinction between people who can’t accept valid criticism of their leaders and other forms of dictatorial control. The whole point of dictatorial control is they can say anything, and they are never held accountable. 

The entire point of the story of the Emperor Has No Clothes, is that power can say anything and do anything, and never be critiqued. Power means literally never having to admit you were wrong, and never have anyone point it out (in public anyway.)

The way the Catholic Church dealt with criticism is they burned people at stake. When you talk to modern-day Catholics about these practices, they tend to like to change the subject. They seem to view burning people alive as not representative of the church, and something done by “a few bad apples.” God they say is about love….until you contradict a religious power structure, then it is more about heat than love. 

Dictatorial systems must have the ability to censor or punish those that critique them, or their power is significantly reduced.

In North Korea, the citizens have to cry profusely when a Kim Jong dies.

It is the same thing in corporate dictatorial systems.

Oracle resources fear being viewed in public critiquing Larry Ellison and will defend his lies. People appear to pick a side, pick their God, and then use hypocritical arguments to defend that entity. People who work for Oracle like to say to me…

Sure, Larry takes some liberties with the truth now and then, but he is not as bad as Hasso Plattner.

Right.

Isn’t it amazing how all of the lying always seems to emanate from the head of companies that aren’t the current employer of the individual pointing out the lying.

This is hilarious….in the beginning, but the more you want to the end, the sadder it becomes. These people are crying for the passing of their oppressors. They should be standing up and doing an Irish Jig. 

Right after Kim Jong Il, the North Koreans received Kim Jong Un, who basically did the same thing to them. The country stays impoverished while he drinks the highest cost whiskey and has private trains and so on.

This is the appropriate response to the death of a dictator, an Irish Jig. It seems like a dance almost created just for such an occasion.

However, you can’t do the Irish Jig in North Korea in response to a dictator’s passing, because if you do, you will end up like Otto Warmbier.

Advice on Enjoying the SAP Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

Those that support enormous software or other monopolies and dictatorial systems, and seek to censor criticism have much in common with those that enforce the same type of censorship in dictatorial political regimes.

What We Do and Research Access

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What We Do and Research Access

Using the Diagram

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References

https://www.telegraph.co.uk/news/2017/09/26/us-student-otto-warmbier-returned-north-korea-blind-deaf-howling/

https://en.wikipedia.org/wiki/Propaganda_and_Agitation_Department

SAP’s Orwellian Memory Hole: The Response to the 2025 SAP ECC Support Deadline Extension

Executive Summary

  • The response to the extension of the 2025 deadline has been that it was “not a surprise” even by those that just until recently state the 2025 deadline was solid.
  • This brings up the topic of the lack of accuracy in the SAP ecosystem.

Introduction

A number of people have commented that the extension of the 2025 ECC deadline was “no surprise.” This statement is, in many cases, genuine. However, there are also many cases where it is not genuine, and this is particularly true in the cases where individuals held to the previous deadline as if it was what was going to occur.

Many of these people are the same people who aggressively contradicted the Brightwork Research & Analysis estimates of the success that SAP has had with taking customers live with S/4HANA. Brightwork Research & Analysis has, by far, the lowest estimates of the number live S/4HANA instances.

Was It “No Surprise?”

In the previous article, SAP Reverses its Cynical 2025 ECC Support Deadline, where we analyzed the history of the ECC 2025 support deadline, we noted we could not find any IT media entity that had predicted the 2025 deadline was going to change.

If one quickly switches from being emphatic about “2025 is the deadline,” to it being nonplused or unmoved after the change is made by SAP. And furthermore, if that same person now accepts the new status quo, but without holding SAP accountable for what they said or why they said it, it appears something strange is occurring.

Something strange is occurring if you are continually being told that a constantly changing story makes sense and if there is a reticence by others to observe the inconsistencies. 

As I pointed out, the only purpose of the deadline was to be used as a burning platform to push companies to S/4HANA, and now that it is changed, to charge extra for support post-2025 as if the change is some gift to customers. 

The Consequence of Orwell’s Memory Hole

The SAP market is very similar to something called the Memory Hole in George Orwell’s book 1984. In “SAP Land,” everything that is the current policy is “as it has always been.” This is necessary to keep SAP from losing credibility as its strategy and statements bounce around like a ball inside a pinball machine.

Let us review the features of Orwell’s Memory Hole.

“The concept was first popularized by George Orwell’s dystopian novel Nineteen Eighty-Four, where the Party’s Ministry of Truth systematically re-created all potentially embarrassing historical documents, in effect, re-writing all of history to match the often-changing state propaganda. These changes were complete and undetectable.

Nineteen Eighty-Four’s protagonist Winston Smith, who works in the Ministry of Truth, is routinely assigned the task of revising old newspaper articles in order to serve the propaganda interests of the government. For example, Smith may be called to retroactively change a statement about food rationing to reflect new policies.” – Wikipedia

1984 is not a book that many institutions want people to read. This is because they want to keep using the tricks described in the book.

1984 is, of course, considered a classic work. However, it is neutered in its teaching by teachers providing the “context” that the techniques described in the book only apply to “evil totalitarian regimes” such as the Soviet Union. Orwell wrote an introduction to the book that stated that while the book does apply to those systems, much the same thing could be found in England in 1948 (when he was working on the book). That introduction was conveniently left out of the book by the publisher, and was only found many years later.

Why SAP Needs a Memory Hole

That is easy to answer.

SAP is continually changing its stories.

This is a constant feature of the SAP space. (first HANA will change civilization, then it is a development environment, now it is more of a background item. First, all HCM customers will move to SuccessFactors, then they will keep HCM, first, everything is about X and O data and survey software is the key to “empathy,” then it disappears, first Leonardo is an IoT platform, then it is a predictive analytics platform, then a machine learning platform, and then it is gone, and now it is on to a different topic)

SAP can pinball all over the place and in any direction, without commentary around SAP related to SAP saying..

“Hey wait that is inconsistent.”

..because whatever SAP says, well that becomes the new normal.

Remember that thing you thought you remembered about SAP? No, you don’t!

The SAP Ecosystem Memory Hole

SAP’s ecosystem reinforces the memory hole. It does this by repeating whatever SAP says and never pointing out the actual history of SAP. These are the sources relied upon by IT media for “information.” This is shown in the following quotation.

On the cost side, SI/consultants are urging customers to weigh the risks of resource constraints. iTelligence is typical of advice offered saying:

The longer you wait the higher the risk and cost to your organisation will be as the best resources become scarcer as the deadline approaches.

Even if your company decides not to adopt S/4HANA immediately, you still need to consider the changes imminent with S/4HANA and create your plan. – Diginomica

So iTelligence, which very obvious falsehoods published at its website, and which previously repeated what ended up being false information for five years (that 2025 was a firm deadline) now is quoted as a reliable source by Diginomica. iTelligence is allowed to re-present the same argument they have been making but proved to be wrong. What iTelligence is saying here is false. Due to the shortage of S/4HANA projects, the shortage of S/4HANA skills is more prevalent now, than it will be in the future. It is also not true that companies need to consider changes imminent with S/4HANA. This entire statement from iTelligence can be roughly translated into “hire us so we can implement S/4HANA for you.” It is not advice, it is sales copy. We have a better quote for iTelligence.

It goes like this.

Remember how we tried to use a fake support deadline to sheepdog you to S/4HANA so we could make money? Well we are now doing the same thing for this new deadline. We are not accountable for what we said before, and don’t expect to be held accountable for what we are saying now.

Living in SAP Land..or Oceania

All of this requires significant mental gymnastics on the part of SAP resources, just as it was for the citizens of Oceania in 1984, as is explained by a second important Orwellian concept called “doublethink.” 

Don’t Just Think…When You Can Doublethink

The novel explicitly shows people learning doublethink and Newspeak due to peer pressure and a desire to “fit in”, or gain status within the Party—to be seen as a loyal Party Member. In the novel, for someone to even recognize—let alone mention—any contradiction within the context of the Party line is akin to blasphemy, and could subject that person to disciplinary action and the instant social disapproval of fellow Party Members.

Earlier in the book, doublethink is explained as being able to control your memories,(emphasis added) to be able to manually forget something, then to forget about forgetting.(emphasis added)

In the case of workers at the Records Department in the Ministry of Truth, doublethink means being able to falsify public records, and then believe in the new history that they themselves have just rewritten. – Wikipedia

Does this last sentence sound familiar or vaguely reminiscent of something?

It should because that is the role filled by SAP marketing. As was covered in our analysis of the 2025 deadline extension, SAP even used the PR release to try to say that the extension of the 2025 deadline was related to how successful S/4HANA has become.

War is Peace

Issues with Consistency?

Let us imagine that any of us had a friend that said they were going to art school, then joining the monastery, going to chef school, becoming a dance instructor, and then planning to teach at the Top Gun school for fighter pilots.

Eventually, we would stop listening to that friend.

But not with SAP.

SAP can say anything, and millions of SAP consultants will engage in doublethink and immediately switch to the new framework pretending to forget the old framework, and agree that it is at has always been. IT media and IT analysts will bend reality to SAP’s will and to their reality. 

Advice on Enjoying the SAP and Oracle Support Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

Whatever SAP says, it has always been that way. This is as true now as it has always been and will always be.

Long live Oceania and long live SAP.

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References

https://en.wikipedia.org/wiki/Political_commissar

https://www.scribd.com/article/414457668/Doublethink-Is-Stronger-Than-Orwell-Imagined

https://en.wikipedia.org/wiki/Nineteen_Eighty-Four

https://diginomica.com/fresh-color-sap-r3-ecc-transition-s4hana-post-2025

https://en.wikipedia.org/wiki/Memory_hole

SAP Reverses its Cynical 2025 ECC Support Deadline

Executive Summary

  • Since SAP introduced S/4HANA, it stated it would stop supporting ECC by 2025.
  • SAP reversed this deadline, precisely as we predicted.

Introduction

Ever since, SAP announced the 2025 end of support for ECC and has been using this as a hammer against customers to get them to move to S/4HANA. This deadline was used along with a large amount of other false information about the technological benefits of S/4HANA, that have been thoroughly debunked here at Brightwork Research & Analysis.

The Official Statement on Feb 4th on The Change to the ECC Support Deadline

Here is the official change in the ECC support policy.

SAP will provide mainstream maintenance for core applications of SAP Business Suite 7 software*(ECC) until the end of 2027 followed by optional extended maintenance until the end of 2030. – SAP

This is how Co-CEO Christian Klein “spun” the announcement.

“Our customers show us that SAP S/4HANA is their future direction and that they expect a long-term commitment from SAP to this platform,” said Christian Klein, Co-CEO and Member of the Executive Board, SAP SE. “We know that our customers have deep business transformations underway using the unique capabilities of the solution. Our user groups confirm this. A recent survey from the Americas’ SAP Users’ Group did not show a single customer not planning to migrate to SAP S/4HANA. In addition, the German-Speaking User Group indicates in their lately published survey that customer investments in SAP S/4HANA are increasing significantly. In response to this and to our customers’ demand for choice, SAP will provide additional flexibility to fully embrace the groundbreaking opportunities of SAP S/4HANA that reflects the individual pace and complexity of our customers’ projects.” – SAP

This quote deflects from the main point of the announcement to make a false claim around the health of S/4HANA in the market, which has been a colossal failure for SAP, with many SAP consulting firms now decreasing their internal emphasis on S/4HANA.

Secondly, Christian references ASUG, which is not a research entity, and routinely publishes surveys without any supporting data as we cover in How Accurate Was ASUG on its S/4HANA Poll?

When we predicted that SAP would extend the 2025 support deadline, we predicted that they would justify it because of their love of customers. And this is precisely what happened when Thomas Saueressig of SAP commented.

SAP’s Newfound Interest in Choice?

After five years of telling customers that they had no choice and that they had to move to both S/4HANA and HANA (HANA is obligatory with S/4HANA as it only runs on HANA), SAP now changes course and becomes interested in choice. This is expressed in the following quotation from Thomas.

SAP is committed to our customers’ success and choice. Offering these maintenance periods is further delivering on transparency and trust. The significant growth in 2019 confirms our SAP S/4HANA strategy and demand.” – SAP

Why wasn’t SAP committed to trust and choice back when they were force-feeding S/4HANA into accounts with the fictitious 2025 deadline?

Like Christian, Thomas adds that S/4HANA, which is not in demand, is in demand. This change in support policy is yet another sign that S/4HANA’s usage and go-lives can’t support any claims regarding ending support for SAP, but of course, SAP spins it the exact opposite way.

A Deluge of False Information

The SAP announcement goes on to say the following, all of it incorrect.

SAP S/4HANA is the next-generation intelligent suite, enabling the move to a digital intelligent enterprise based on next-generation best practices and artificial intelligence–enabled automation. At the same time, it is paving the way to the cloud and hybrid architectures, driving a substantial level of landscape simplification and TCO reduction. Over 13,800 customers have already chosen SAP S/4HANA. – SAP

When we say this, we mean it. There is not a single assertion in this paragraph that is correct, and we have fact-checked all of them individually in separate previous articles.

SAP then sets its new claim at 13,800 customers, which is only customers that have a license. Something that is never admitted by SAP is that many of these customers never paid for the S/4HANA license they own, or they were coerced to purchase S/4HANA as part of a settlement for an indirect access claim as we cover in the article How Indirect Access Drove S/4HANA Purchases. This means that that the 13,800 “customers” number is not a true reflection of the interest in holding and S/4HANA license. However, when SAP reports this number to Wall Street, they state that the number is clear evidence of authentic customer demand. How the customers ended up with the S/4HANA licenses is left out of the conversation. SAP is not the only vendor to do this, and it is the crux of the lawsuit by the City of Sunrise Firefighter Fund against Oracle as we cover in How SAP and Oracle Coerce Customers into the Cloud.

The actual number of live customers is far lower than this, and the number of real live S/4HANA customers far lower than this reduced number. We are repeatedly contacted by various people trying to analyze the S/4HANA numbers by people who work for customers who don’t have any idea what they are doing, and report SAP’s false numbers to their higher-ups, and call this analysis. The questions are odd because they can’t seem to imagine that the official numbers are incorrect.

The conversation invariably goes something like the following.

I just wanted to verify a few things with you. “So the number of S/4HANA is X, and the number of live S/4HANA is Y, right?”

The overall PR release by SAP is roughly four times longer than it needs to be. This is because it contains so much marketing literature around S/4HANA, which is available in many other places on the SAP website and does not have anything to do with the change to ECC’s support deadline change.

Time to Ask Josh Greenbaum

The PR release then switches to a quote from Josh Greenbaum. Josh Greenbaum is a captive analyst for SAP and is yet another source that can be relied upon to repeat what SAP says as we cover in the article Why Josh Greenbaum Continually Carries Water for SAP.

And he does so again in this quotation.

“Customers making the commitment to SAP S/4HANA for their digital transformations need a partner that is equally committed to supporting innovation across their businesses and processes. Providing maintenance for SAP S/4HANA until 2040 represents a commitment to SAP customers that should give them the confidence to plan for the future,” said Joshua Greenbaum, principal, Enterprise Applications Consulting. “These customers also need the flexibility to plan their transformations carefully and with a minimum of disruption to their ongoing business processes.

This is not really Josh speaking, he is just being puppeteered by SAP, so this comment should be considered an SAP statement. Speaking from logic, it is unclear why SAP saw the need to include the maintenance date for S/4HANA in this PR release, except perhaps to distract from the fact that it was waving the white flag of surrender on its ECC support deadline, which it previously said was immovable.

SAP’s Specifics Around the ECC Support Deadline

SAP then provides the most critical part of the PR release, which is the details of the support extension for ECC.

Following this phase, SAP will offer customers a choice of how they would like to continue with the maintenance for core applications of SAP Business Suite 7 from 2028 onwards:

Customers needing support for their applications in longer conversion phases to SAP S/4HANA can leverage the proven extended maintenance offering. This comes with a premium of two percentage points on the existing maintenance basis for core applications of SAP Business Suite 7 for all support offerings. It will be available for three additional years beginning at the start of 2028 and ending at the close of 2030.

Customers who do not decide for the extended maintenance level of support by the end of 2027 but choose to carry on with their SAP Business Suite 7 software systems will automatically be transferred to the customer-specific maintenance model. This includes problem solving for known issues at unchanged fees.

This is interesting, but nothing that SAP says about its support deadlines is reliable anyway (as this recent extension yet again proves). SAP will continue to support products as long as it is economically beneficial for them to do so, and this can be predicted by merely analyzing the usage of various SAP products.

However, what is important to note is that SAP is using this idea of extending the support deadline to squeeze even more money in support out of customers. So support, which won’t increase in cost for SAP, will increase in cost for SAP customers after 2028. Before the deadline was changed, they were proposing a premium after 2025.

What the Ecosystem Said About the 2025 Deadline

The entire SAP ecosystem was required by their SAP partnership agreement to parrot SAP’s statement that ECC would no longer be supported. This deadline was also repeated ad nauseam by SAP consultants on forums like LinkedIn.

What We Said About the 2025 Deadline

The 2025 deadline make little sense from first time we heard of it because it presumed the type of conversion to S/4HANA that is without precedent even in previous versions of ECC. But this would be particularly problematic for the migration to S/4HANA. As the only entity to publish realistic estimates of S/4HANA migration (all of the other sources are financially connected to SAP and try to help SAP promote their programs). We knew that the live S/4HANA instances were far below what SAP was telling customers and the media. We have been uncovering hidden S/4HANA failures such as we cover in the article The Hidden S/4HANA Failure at LeasePlan, and The Hidden S/4HANA S Oliver and KPS Failure. S/4HANA failures are harsh…they exceed ECC wipeouts, and they are one of the most covered up failures of the implementations that we track. We have covered the reasons in many other articles. However, the upshot is that SAP was never going to have enough customers on S/4HANA to move so many customers off of support for ECC to have the 2025 deadlines make any sense.

We took an official position predicting the deadline would be extended in June of 2019 in the article What is the Reality of SAP’s 2025 ECC Support Deadline? This was not the first time we had told people or had been writing on forums that the 2025 support deadline would have to be extended, but the first time we got around to writing an article on the topic.

The first cracks began showing when SAP began to tell customers that they could buy their post-2025 ECC support, albeit at a premium as we cover in the article Why SAP Will Charge a Premium for 2025 ECC Support.

Creating the Burning Platform…to Push S/4HANA

SAP has better access to the actual numbers in many dimensions that we do. However, they kept to the 2025 support storyline because it helped them create what is called a “burning platform” for customers to move to S/4HANA. SAP and their consulting ecosystem are both responsible for providing false information about the deadline (SAP for license revenue and consulting firms for billing hours).

Furthermore, they were trying to get customers to move to an application that was not ready to be implemented. We have read several accounts of the extension of the 2025 deadline and yet to have run across a single article noting how deceptive it was to tell customers that was obviously not true. This is like trying to analyze any topic only from the announcement of a change while projecting into the future, without asking the question.

“Why was this stated as a policy in the first place?”

This burning platform trick is adopted by SAP, but it was initially perfected by IBM, as the following quotation from a comment on The Register explains.

Our IBM sales engineer told us that support for the DOS/VSE operating system would likely be dropped within 18 months, and that we could get a license for MVS for free for the 1st year.

After that, the license would go from $4200 / month to $11400 / month. Is that a great deal or what?

The upgrade commenced but performance on the 4381 mainframe declined 20%. no problem, there was an upgrade available to fix that. the monthly lease went up by many (MANY) thousands of dollars.

I left the mainframe world in 1987 while all this chaos was taking place. came back 20 years later for a visit and there were no mainframes of any kind to be seen anywhere.

But – interestingly enough, DOS/VSE is still available as a virtual machine in the latest incarnation of z/OS. IBM never dropped support for it.

Heck, Hewlett-Packard supported the HP3000 minicomputer environment from 1978 through 2010.

The SAP folks will be fine if they don’t upgrade.

Who at SAP Knew The Reality of the Fake 2025 Deadline?

In terms of who lied, it would be all of the senior people at SAP who trafficked in this fake deadline at SAP. SAP continues to reduce the experience level of its salesforce, and its salespeople often have very little knowledge and are normally highly mind-controlled by SAP. Many of the salespeople likely thought the deadline was real. Furthermore, SAP salespeople don’t live in a world where things are true or not true, and they would generally see such a deadline as something to help them close a deal. SAP says something, tells them to say something, therefore that thing is true. If later that thing turned out to be false, and a new thing is stated, then that new thing is true.

What Did the SAP Ecosystem Know About the 2025 Deadline?

The 2025 ECC support deadline was plastered all over the websites of the major SAP consulting firms and peppered in their conversations with their clients. It is difficult to say what percentage of the senior members at the major consulting companies knew the 2025 deadline was fake or unrealistic. Still, either way, the fact is that they were once again wrong about SAP, and provided “official” information from SAP to their customers, but were once again wrong.

What did The Media and IT Analysts Know about the 2025 Deadline?

As for the media and IT analysts. The vast majority don’t know enough to know if SAP tells them something if it is true or not true, and they know they have to publish what SAP tells them so that they can keep advertising and other associated revenue coming in from SAP. In analyzing the articles by IT media and analysts, I could not find a single entity that predicted the extension of the deadline.

If any reader can find an example of any media entity or IT analysts that predicted the extension of the 2025 ECC deadline, reach out and we will add links to that article here.

What did Third Party Support Providers Know About the 2025 Deadline (A Hint of Why the Deadline Was Extended)

But I was able to find an insightful article that proposed that the 2025 deadline was actually working against SAP, the author is Mark Smith the CEO of Support Revolution — therefore a financially biased entity (as they want to have the SAP support contract migrated away from SAP), but this quotation rings true.

Six years to go, and SAP’s 2025 deadline still doesn’t seem to be convincing businesses to move to the cloud. The ticking clock means that in 2019 many more businesses will start to make decisions on what to do about their legacy software and many of them will decide to stick with what they have. Securing and supporting what a business knows to work is likely to beat rushing to the cloud to meet a deadline. The 2025 deadline is having an effect, but not necessarily the one SAP wants.(emphasis added) Users are feeling abandoned due to SAP’s not being able to provide support as from the stated date and are focusing on its flagship S/4HANA. “We provide investment protection for the current on-promise solutions of businesses, they can move to the Cloud this way”says Bernd Leukert, member of the Executive Board, Products & Innovation.

But we can say that the stated promise of moving to the cloud is actually not completely true. S/4HANA forces its clients to move to a new data base due to its design and structure. This situation will bring along a complexity within itself without a doubt. Organizations have two options with regard to the 2025 Deadline in the decision stage;

This may be the most insightful reason as to why SAP extended the ECC support deadline. If you had asked us when we made our prediction about the date of the extension, we would have not guessed the very beginning of 2020. The reason? Because we would have thought that SAP would have wanted to continue to use the fake 2025 deadline to batter its customers into moving to S/4HANA. This “early” extension of the 2025 deadline (5 years before the deadline was to take effect) is evidence to us that this deadline was simply working against SAP, and causing SAP customers to “explore their options.” SAP does not want this. They want everyone in the SAP bubble, drinking from the fountain of false information provided by the SAP consulting firm, paid off IT media and IT analysts. As soon as one begins looking options and takes “the red pill,” other options begin to look very appealing. A very high percentage of SAP’s continual revenue flow is built around its customers not having the interest or time to actually investigate their options. And the SAP consulting companies sit out at accounts providing a steady stream of false information about SAP.

What Did Customers Know About the 2025 Deadline?

Some customers knew the deadline would be extended. This is expressed in the following quotation.

SAP user and industrial vacuum manufacturer Edwards is considering this move to S4/HANA, but is finding the business case for process change difficult to justify.

Rob Moore, SAP business information manager at Edwards, said users were aware of the proportion of the community yet to move to the new platform. “Given those figures and the fact that the deadline is only five years away, I think SAP is going to have its work cut out to get everyone moved in that time, and then be able to declare that support is finished.” – The Register

A customer can say this, but no one else who covers SAP could say such a thing. They would be immediately reprimanded by their manager/partner/etc.. and told to take down the comment, article.

Support for ECC After 2030?

This is an excellent time to make a further prediction.

SAP will extend the support of ECC past 2030.

The reason is that even by 2030, there will be a sizable number of customers that have not migrated to S/4HANA. And something that is never discussed in the SAP ecosystem, there will also be a large number of companies that never move to S/4HANA. They will eventually move off of ECC onto something else.

To drop support for ECC would be to lose out on a great deal of money, and as we cover in the article How do SAP and Oracle’s Support Profit Margins Compare to Pablo Escobar?, SAP, similarly to Oracle, has an 85% margin on its support. Neither entities that traffic in blood diamonds, nor international drug lords, nor SAP or any other company will ever turn down 85% margins.

SAP is proposing that companies can now have support post-2025 if they pay a premium. However, with an 85% margin, why is a premium even necessary? Because SAP can pitch it as a win for customers. This is just a ridiculous mind control tactic. And once again, while scouring the Internet, I could not find a single article that even brought up this subject.

SAP receives our Golden Pinocchio Award for telling its customers what it would have known would end up being untrue. 

Advice on Enjoying the SAP and Oracle Support Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

This was not a particularly difficult prediction to make, but we were one of the only entities to publish this prediction. This illustrated how restricted the vast majority of entities that publish information around SAP are censored in what they can publish.

We have added this accuracy data point to our accuracy measurement of SAP predictions that you can view in the article A Study into SAP’s Accuracy. As you can see in the article, we are far better at predicting what will happen with SAP than is SAP (or, of course, any of the ecosystems that merely repeats what SAP says).

Honorable Mentions

In 2018, Jarret Pazahanick, a SuccessFactors consulting previewed the change from the 2025 deadline. This quote provides an excellent example of how SAP puts its customers in no-win situations, and how the 2025 deadline caused a large amount of unnecessary hand wringing, all for a deadline that was eventually extended in any case.

The bottom line is SAP has really struggled to convince their 12.5k SAP HCM customers to move to SuccessFactors as the last provided info has 600 out of the 2,000 SuccessFactors Employee Central customers coming from SAP HCM. Many of these customers understandably want some assurances that SAP will continue to support SAP HCM further out than 2025. which could easily have been provided by getting an agreement to move the entire Business Suite out to 2030. Instead, SAP has decided to introduce a new license offering called SAP HCM On-Premises S/4HANA that will be built by 2023 and will be based on SAP HCM so they are counting on customers trusting SAP will deliver something five years from now, being willing to do an upgrade, signing up for a new license, moving to HANA all to get virtually the same functionality they have today and an extension of support until 2030.

My thought is eventually SAP will realize that slow adoption in FI to S/4 + all the areas in the SAP Business Suite where S/4 does not have enough functionality to date will drive them to revist the entire strategy and extend the business suite to 2030. Time will tell and will be interesting to look back on this comment thread in 3-4 years.

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References

https://news.sap.com/2020/02/sap-s4hana-maintenance-2040-clarity-choice-sap-business-suite-7/

https://www.theregister.co.uk/2019/12/04/users_call_for_sap_flexibility_in_2025_software_support_deadline/

*https://erpnews.com/saps-2025-deadline-will-focus-on-minds/

*https://itpsap.com/is-saps-2025-deadline-real/

*https://techhq.com/2019/06/s-4hana-upgrade-proves-unpopular-among-sap-users/

We found some interesting quotations in this article around support.

Fifty-three percent intend to keep SAP running “at least until 2025” and 26 percent will do so “beyond 2025”. That’s possibly due to the poor service that SAP gives its customers (at least, those surveyed by Rimini Street), with a miserly 5 percent only stating that the support fees paid to SAP were “well worth the value we receive.” When asked “What are your biggest challenges with SAP support today?”, 20 percent complained that SAP responded that they should solve the problem by applying a support patch or update. Many SAP implementations are deliberately not updated or patched due to the bespoke nature of their installations either breaking or preventing the update. With the average cost of a re-implementation of SAP Business Suite 7/ECC 6.0 to SAP S/4HANA at over US$30 million, and allegedly variable quality in expensive help and support, no small wonder that many are treading water, and intend to continue doing so well after 2025. The issue experienced by SAP is one that any software development company will attest to: making 30 bespoke installations of a single piece of software effectively means supporting 30 different apps.

https://diginomica.com/sap-announces-critical-changes-maintenance-policy-post-2025-it-enough

https://e3zine.com/end-road-sap-2025-deadline/

A Quick Summary of: A Brightwork Warning on SAP’s Cloud Extension Program

Executive Summary

  • SAP has created a sales program that will cause a number of customers to convert their on premises SAP environments to cloud — on paper that is.
  • We cover this program that SAP does not want to be known outside of just those customers they share this with.

Introduction

This is a summary of the article A Brightwork Warning on SAP’s Cloud Extension Program, This provides the highlights of the article, but not the details to read the details, see the link above.

The Article Summary

SAP has created a sales program that will cause a number of customers to convert their on premises SAP environments to cloud – on paper that is.

SAP has introduced a program for migrating SAP customers to the cloud but migrating them only on paper.

The customer may partially terminate existing on-premise licenses and associated maintenance payments in conjunction with a purchase of a subscription to cloud solutions from SAP. Premium support engagements cannot be terminated in conjunction with a subscription to cloud solutions from SAP. SAP Business One is not in scope.

Who Should Consider the Extension Policies?

Any existing SAP customer with unused, perpetual licenses that are shelfware who is moving to SAP Cloud or any licensed solution offering should make use of the Extension policy.

This is the problem with getting advice around SAP from an entity that receives around $150 million from SAP as we cover in the article How to View Gartner’s Financial Bias in Favor of Large Vendors, and Understanding The Brightwork Estimate of The Amount of Money Paid by SAP to Gartner Per Year.

SAP Analytics Cloud has an attractive vision: ONE SIMPLE CLOUD with smart features, integration with live SAP data and applications.

Commercial incentives make it financially attractive to adopt SAP Analytics Cloud and stay with SAP rather than competitive tools.

SAP Analytics Cloud Enterprise Readiness contributes to the modernization of analytics as part of the SAP Intelligent Enterprise realization.

SAP will pretend to migrate customers to SAP Analytics Cloud with this program.

What it Means

This pushes SAP Analytics Cloud into the account, but it has nothing to do with whether SAP Analytics Cloud is a good fit for the account.

The presumption will be that because the company has BusinessObjects and because SAP has an application called SAP Analytics Cloud, that has zero to do with BusinessObjects, that SAP customers will naturally move to this new application.

Why would any company migrate to SAP Analytics Cloud without performing a detailed analysis of whether SAP Analytics Cloud is the best possible option? There is, of course, no discussion of this in any of the SAP documentation.

What SAP Wants from the Program

SAP wants customers to migrate to SAP Analytics Cloud-based on the logic of directly converting the support for BusinessObjects to SAP Analytics Cloud as an example provided in the article, but this generalizes to other cloud extensions into other SAP cloud products.

Iver van de Zand or SAP proposed in a sales leadership webinar thinks that they can compete with Tableau when SAP Analytics Cloud is nowhere close to competitive.

SAP intends to push its customers to the “cloud on paper” so that SAP can then report enormous cloud growth to Wall Street.

To see the full details, see the original article A Brightwork Warning on SAP’s Cloud Extension Program.

Advice on Enjoying the SAP Cloud Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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How Real is SAP’s Intelligent Enterprise?

Executive Summary

  • SAP introduced the concept of an Intelligent Enterprise as a significant driver for its software.
  • We answer where this concept originated and how valid it is.

Introduction

The term intelligent enterprise is an outgrowth of the current obsession and hype around the term artificial intelligence. The term is problematic because it contains a virtue necessarily within its name, and so like terms such as “smart bomb” or “smartwatch,” it tends to be self diluting over time.

But let us keep an open mind and review what SAP says about its Intelligent Enterprise offering.

Straight From SAP….or, That is ASUG

We found several articles about the SAP Intelligent Enterprise from SAP, but we thought the article published at ASUG’s website was the most understandable. SAP marketing writes most of ASUG’s material, os when something is published at ASUG, it should be considered approved by or entirely written by SAP.

Let us take a look at how the article begins.

Intelligent Enterprise is for Next Generation Businesses?

Technology pundits, industry analysts, and enterprise technology providers are fond of sharing their visions for how next-generation businesses should operate. At the 2018 SAPPHIRE NOW and ASUG Annual Conference, SAP introduced its own vision, described as the “Intelligent Enterprise.” But what does this term really mean? And what does it mean for SAP customers?

Right off the bat, we now define one virtuous term, intelligent enterprise, through endorsing that it is what “next generation” businesses use. What is a “next-generation business?”

This is another reference to “something good.”

The logic goes something like this.

Good Item is Used….Only by Excellent Entities

This builds a series of positively associative assertions; good things are connected to other good things, which, of course, is all linked back to SAP.

Data-Driven Accelerated Outcomes?

SAP defines the term like this: “Intelligent enterprises effectively use their data assets to achieve their desired outcomes faster—and with less risk.” The speed comes from automating complex processes within the business and bringing them together around a united core of master data in the cloud.

Organizations need to buy into certain philosophies for this approach to work. SAP identifies four key enablers to the intelligent enterprise:

1. Customer-centricity

2. Data that drives differentiation

3. Digitized processes

4. A cloud-first approach

This is a bit generic. Several of these items are things that no company would not admit to following, except perhaps being “cloud-first.”

However, it does not ring true when SAP proposes this, because while SAP is aggressively cloud washing its revenues as we cover in the article A Brightwork Warning on SAP’s Cloud Extension Program. This is because most of SAP’s customers use their SAP applications on premises.

Business Processes + Intelligent Technologies?

When you consider SAP’s Intelligent Enterprise vision, it functions a little like a formula. It serves these key business processes through its intelligent suite of products:

  • Customer Experience
  • Manufacturing and the Supply Chain
  • Digital Core (ERP)
  • People Engagement (HR)
  • Network and Spend Management (procurement)

So SAP has very little customer experience business (read CRM). Yes, SAP customers use SAP for a lot of manufacturing and supply chain and ERP, and they use SAP for HR, and quite a bit less for procurement (SAP has little overlap between its ERP customers and its customers that use Ariba).

So all that we have here is a statement of things that SAP customers use from SAP. There is nothing notably different about this — and the same usage pattern could be documented ten years ago on SAP accounts.

AI/ML/IoT/Leonardo

Then, where businesses want to apply intelligent technologies like artificial intelligence, machine learning, the Internet of Things (IoT), and more, they’re able to add those through SAP Leonardo. Finally, businesses need to go through the process of making sure their data is not only harmonized but moving much of it to the cloud, so they can manage it efficiently.

This is the obligatory or seemingly obligatory part of the article that mentions AI/ML. SAP has close to nothing to do with AI/ML so that we can throw those terms out.

Now we are left with IoT and Leonardo.

This article was written in 2018, but at this time, Leonardo was already dead, which we officially declared in 2019 in the article Our 2019 Observation: SAP Leonardo is Now Dead. SAP has stopped promoting Leonardo — so if the SAP Intelligent Enterprise was based upon Leonardo, well, that is a problem as it does not have any real future.

Intelligent Enterprises in Practice?

Given SAP’s focus on financial ERP applications, it often cites the example of invoice and payment matching, along with all the related approvals and subsystem ratification procedures such as separation of duty. We can now almost completely automate these procedures, while leaving a gateway for human hand-offs when we need to resolve anomalies. Of course, these anomaly resolutions can also be significantly automated as needed.

SAP’s financials in its ERP system is the most robust functionality in any of its applications.

However, it is not true that these processes are “completely automated.” They function about the same in S/4HANA as they did in ECC, and not many companies have moved to S/4HANA (and far fewer than stated by SAP).

This quotation is just inaccurate.

Embracing Automation?

Customers today can start to use this intelligent software-supported automation to shoulder repeatable, definable tasks. Embracing this change will allow companies to free up employee time and empower them to do more meaningful and strategic work.

What is intelligent software?

Did we miss something?

This is the same software as before SAP’s Intelligent Enterprise program was rolled out. All software contains intelligence, as does SAP’s, but there is nothing here to support the creation of a new term.

Let us see if the rest of the article justifies this claim.

Deeper Human-Like Intelligence?

As mechanized and back-end as these technologies are, customers can use SAP products to bring a human-like front end to the intelligent automation now being engineered into the enterprise. For example, we can create personalized and unique customer experiences using AI, chatbots, and other related voice technologies.

What is the human-like front end? I am serious because I have never heard this term before. It implies that the front end is like a human. I have never used or seen a UI that looks like a human. The author may have meant that it is user-friendly.

SAP has SAPGUI and then lower used applications like SuccessFactors or Ariba that have more usable UIs (as they are acquisitions), but it is not like human-like. There is no new automation. The AI is non-existent, and no one is using chatbots on SAP projects. Chatbots are for a company’s website, which is not something that SAP competes in, and chatbots aren’t particularly useful. Try asking one a question sometimes.

Applying Something That is Not Demonstrated

Companies that want to apply these intelligent technologies can turn to SAP for frameworks to make this happen, such as SAP Conversational AI, an end-to-end toolkit for training, building, and monitoring chatbots. According to SAP, “These chatbots can be integrated with SAP and non-SAP systems and are available as preconfigured industry-specific bots. So far, users have built 60,000 SAP Conversational AI chatbots.”

Is this primarily coming down to adding chatbots to SAP? Again, chatbots are for website visitors (at least mainly).

The Crucial Cloud Connection?

The cloud is the essential connection across the entire intelligent enterprise. Whether on premises, public, or hybrid, the degree to which the intelligent enterprise gets smarter is a direct factor of the amount of secured network connectivity it engineers into the fabric of its new computing stack.

Why is that true? A hosted solution, hosted in a data center (that is not cloud) is also a connection across the entire intelligent enterprise. SAP then contradicts itself by saying

“whether on premises, public or hybrid”

Doesn’t that deny the claim that it is cloud….that is what was stated in the previous sentence?

Intelligence that Comes from…..Blockchain?

Part of this “connectedness factor” will set customers up to harness new innovations like blockchain. SAP says it has recognized the part that blockchain plays in creating more-intelligent enterprises, so it’s developed SAP Cloud Platform Blockchain. This offers blockchain as a service, delivered at the right power and scope, based on individual customer needs.

SAP may have a cloud blockchain offering, but many SAP customers do not use blockchain. Furthermore, blockchain is an online register — so why is it intelligent, or why does it contribute to the SAP Intelligent Enterprise?

It is not at all clear. SAP also states that it has 65 customers that participate in its blockchain initiative, but that still does not explain why blockchain is part of something intelligent.

The Intelligent Enterprise Adoption Curve

Ultimately, becoming an intelligent enterprise is about adapting and changing so you’re ready for what’s ahead. These types of enterprise-wide changes require significant investments and culture shifts, so SAP acknowledges that customers will adopt these changes in phases. And some organizations will undoubtedly move faster than others, acting as the early adopters.

But the nature of these changes can start to create a virtuous cycle. As organizations adopt technologies such as automation controls, chatbots, blockchain, and machine learning (ML) to gather more information, they will get smarter—continuing to speed up the cycle of innovation.

Many customers will still have a way to go before they become full-on intelligent enterprises. But these technologies exist, and SAP is ready to help customers start getting the most from them now.

In this explanation, SAP threw a lot of somewhat disassociated things into a big Christmas stocking and called it “Intelligent Enterprise.” And many of these things are things that SAP has very little to do with.

Advice on Enjoying the SAP Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

This article by SAP is an incoherent and disassociative attempt to make some old things that SAP is involved with and things that are trendy but have little relevance to SAP to create something new and sexy for customers to get excited.

There is no evidence from SAP that its Intelligent Enterprise is anything.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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References

https://www.asug.com/insights/what-makes-an-intelligent-enterprise

How Executives and Companies Now Make Up Transformations That Never Occurred

Executive Summary

  • Executives have begun referring to transformations that never occurred as resume builders.
  • Using the term transformation is now a way to take credit for a hazy accomplishment.

Introduction

Digital transformation is a common term used in the IT space and, in particular, in the SAP space. It is a recent term and also a highly problematic term. I now come across the statement that some SAP application was implemented for digital transformation or part of a digital transformation program.

Transformations Became a “Thing”

The term is now often shortened to just “transformation.” Increasingly any corporate initiative is being labeled a transformation to give that initiative extra cache. Many executives desire to enhance their resume by being thought to have lead transformations at their companies. We noticed this in the analysis of the description by former Infosys CEO, Vishal Sikka as we cover in the article How Much of Vishal Sikka’s Explanations on Artificial Intelligence is Complete BS?

From this article, we noticed a rewriting of history to fit his background into participating in the transformations category.

Rewriting History

Vishal has a curious explanation for why he is so uniquely qualified to lead an AI startup, and at least of the reasons he listed was his participation in transformations.

I have a Ph.D. in AI and have had the opportunity to work in large companies in enterprise software and services. I understand transformation in a way that few people do because I have lived through two large-scale, successful transformations. I thought it was time to take advantage of the unique gifts I have been given. That’s how I ended up here.

Also, what transformation is Vishal referring to?

Did SAP Transform When Vishal Sikka Was CTO?

SAP degraded as an organization while Vishal worked there, with more employees and work being done in India. This led to terrible support, and then Vishal getting tied up in what Teradata asserts is IP theft from building HANA as we cover in the article How True is SAP’s Motion to Dismiss the Teradata Suit. (And Teradata further says in court documents that Vishal Sikka was entirely on board with the IP theft.) I have been following SAP since 1997, and I don’t know what transformation Vishal is referring to.

Vishal then left SAP unexpectantly and under unusual circumstances.

Did Infosys Transform When Vishal Sikka Was CTO?

Next, he took the top position at the horrible Infosys — a firm which does nothing but US worker displacement and rigs the H1-B visa program for which they were found to have defrauded as we cover in the article Who Got the $34 Million Fine from the Infosys H1-B Fraud Case?

When Vishal started working for Infosys, they were an H1-B mill that engages in H1-B fraud and is known for nothing except low priced, low skilled IT bodies. And after Vishal left, Infosys is known…..for the same thing.

What is the transformation again?

Advice on Enjoying the SAP Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

The term “digital transformation” is a throwback to an age when digital technologies transformed processes. Still, at this point, it makes little sense to use it as a term as what is currently happening is that new hardware and software are merely replacing older hardware and software.

The term “transformation” is an outgrowth of the term digital transformation. It is nearly untestable in that just about any executive is prone to state that their involvement in a company leads to a significant improvement. However, in the examples provided above, the companies used in the case presented by Vishal Sikka work about the same as they did before Vishal Sikka’s addition, as they did after Vishal Sikka moved on. This term will most likely be continued to be used in this fashion until it ceases to have the same impact it once did, and then at that point, a new term will be created that carries a further appeal by its novelty.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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References

How a New Startup Aims to Use AI to ‘Amplify Humanity’

Why Jelena Perfiljeva Refuses to Debate Brightwork Research

Executive Summary

  • SAP resources tend to live in a bubble where they only consume biased content.
  • This makes it very difficult for them to tolerate fact checking.

Introduction

We perform fact checking, and we fact check SAP along with several other entities in the IT space. As this fact checking contradicts SAP’s marketing, this causes cognitive dissonance on the part of many SAP resources, for whom all they know is repeating SAP information. One such resource is Jelena Perfiljeva.

Jelena Perfiljeva wrote the following tweet about Brightwork Research & Analysis.

This tweet is in response to use contradicting anti-Brightwork comments on SAP’s page by SAP resources. The comments repeatedly asked for the SAP resources to do something other than making personal attacks and to provide specific details that Brightwork Research & Analysis published that were false. Not one of the SAP resources replied, which includes Jelena Perfiljeva. But what Jelena Perfiljeva did is instead change venues to Twitter where she commented that I lived “under a bridge.”

This goes along with a storyline that I am a troll. The evidence that I am a troll according to SAP resources is that I fact check or contradict SAP.

Our Response to Jelena

We reached out to Jelena on Linkedin. Here is the message.

If you want to debate me, I am right here. We can have a debate on HANA or any other topic. What it looks like to me is that you are trying to stay away from any substantive debate and are trying to smear Brightwork, but without doing the work to understand the topics. A person with your background is not really in a good position to debate me, so you appear to be having an emotional reaction and are trying to get back at me.

But if you are going to do it, you need to provide evidence. Calling people you disagree with mentally unbalanced is unethical on your part. Responding to comments in batch is not an indicator of a person being unbalanced. If you and others are going to comment, I am going to comment in return. You should expect that.

Jelena’s response to this message? She disconnected from me on LinkedIn.

SAP Resources Often Lack Calls for Evidence

Jelena is generally offended by our repeated requests for evidence, as can be seen in the following tweet from Jelena.

I repeatedly asked for evidence or some specifics from SAP resources in numerous comments, and Jelena does not appreciate this. As with many SAP resources, they prefer to work off of feelings and not to contradict Brightwork’s conclusions with evidence.

Jelena’s Ready-Made Excuse for Not Being Able to Debate the Specifics

By categorizing a fact-checking service as a troll and she justifies being unwilling to support here positions. We have debated Jelena previously and found she argues about things she knows nothing about — and takes whatever position SAP takes and assumes it is right.

This is the same strategy used by Barbel Winkler as we cover in the article Is Bärbel Winkler Correct the Brightwork SAP Layoff Article Was Fake News?

Advice on Enjoying the SAP Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion

Most SAP resources and Jelena Perfiljeva is yet another, don’t care what is right. They are not able to debate their positions (Jelena is an ABAPer and knows next to nothing about most of the research at Brightwork), but instead choose to smear any entity that covers SAP, but is not paid off by SAP.

SAP resources like Jelena Perfiljeva, Barbel Winkler, and so many others will tolerate and amount of inaccuracies from SAP, and the SAP ecosystem because they feel like it lines their pockets. This is under the idea that any lie is acceptable, as long as it comes from your side.

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References

The Brightwork SAP Bribery Tracker Per Country

Executive Summary

  • SAP has several international bribery cases.
  • This table was created to keep these bribery cases and to catalog likely future SAP bribery cases.

Introduction

At Brightwork Research & Analysis, we have long held that SAP is a highly corrupt company, and its rise had much more to do with its ability to corrupt other entities in IT than anything to do with its technology.

Soft Versus Hard Corruption

Internationally “soft corruption” is a daily activity with SAP. For example, SAP applications are recommended for the only reason that it is profit-maximizing for SAP consulting companies, even though it is infrequent that an SAP application can meet its sales conjectures. SAP has some of the lowest success levels of any software vendor. SAP partners repeat any falsehood proposed by SAP and work against the interests of their “clients,” as we cover in the article What is the Real Story with SAP’s Run Simple? 

This table only catalogs the “hard corruption.”

SAP Bribery Cases Per Counry

 
Bribery Case
Country
Description
1The Guptas Scandal
South Africa
SAP is accused of using its partners in South Africa to pay off Gupta companies in order to obtain contracts from Eskom and South Africa Rail, which we covered in the article How Deloitte, McKinsey, the Guptas and SAP Ripped Off Eskom
2Tanzania Port Authority
Tanzania
SAP is accused of using its partners in Tanzania to pay off companies in order to obtain contracts from The Tanzanian Port Authority.
3Unspecified
Kenya
SAP is accused of using its partners in Kenya to pay off companies in order to obtain contracts from The Tanzanian Port Authority.
4Various Panamanian government contracts
Panama
"Vicente Garcia, SAP International’s former vice president of global and strategic accounts. now sits in a federal prison serving a 22-month sentence for bribing foreign officials. Garcia pled guilty to one count under the Foreign Corrupt Practices Act (FCPA) in August 2015 for bribing Panamanian government officials in a successful attempt to win large software contracts for SAP."

Conclusion

Overall, in our estimation, “soft corruption” far exceeds the “hard corruption” that is listed in the table above.

Hard corruption makes the headlines because it is explicitly illegal. However, soft corruption is a far more significant issue with SAP, and it is accepted as merely a natural part of IT.

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References

https://www.bloomberg.com/news/articles/2019-02-28/sap-eoh-unit-accused-of-bribery-in-tanzania-techcentral-says?sref=tnzoy5oH

http://www.fraudjournals.com/sap-liable-for-employee-bribery-scheme/

https://www.channelpartnerinsight.com/channel-partner-insight/news/3071905/sap-faces-second-public-sector-corruption-investigation-in-africa