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.


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

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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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