What Will Happen to HANA Projects That are In Process?

Executive Summary

  • We covered how SAP fired a number of top people in the HANA hierarchy.
  • So now the question is what happens to HANA projects that are in process.

Introduction

In the article SAP’s Layoffs and a Brightwork Warning on HANA, we covered what SAP’s layoffs meant for HANA. And it is not positive. However, it brings up an interesting question about what do do about planned HANA implementations.

The Background

Bernd Leukert is gone.  Bjorn Goerke is gone. Ken Tsai, who had global product marketing responsibilities for HANA, SAP Data Hub, SAP Vora, is now vice president of Adobe’s Experience platform. All of Bjorn’s product teams are slaughtered: ABAP, HANA, UI, JAM, Big data, Mobile and many more. Not just Neo, but any SAP proprietary service on any platform. Everything related to Cloud Platform & Mobile in North America was shuttered – several teams across several cities. Didn’t matter how old/young, good/bad. Layoffs announced in US, India, Japan, Hungary, Germany, Singapore, Canada, UK, China, Ireland, Malaysia, France, and Vietnam. SAP’s engineering culture died this week. – Ahmed Azmi

The Question

These high profile firings clearly mean something is wrong and SAP can no longer move forward with the current product leadership. You explained the reasons for the problems. What do you think SAP’s options going forward could be especially for customers who are currently implementing a HANA based system? SAP already removed HANA from the cloud platform a couple of years ago when they rebranded the HANA cloud platform (HCP) to the SAP cloud platform (SCP). Now, it looks like the on-premises product line is also taking a turn away from HANA.” – Ahmed Azmi

The Answer

“SAP is not going to change its strategy for in-process HANA customers, no matter how bad the value is for them. SAP can command many thousands of consulting firms to continue to promote HANA, none of them caring much what is true. I see them as continuing down the path they have followed of making false claims about HANA to anyone who will listen. But to your specific question, if a customer is in process, there is little that can normally be done. The IT department needs to pretend to the business that the purchase was justified. The number of IT departments that have admitted they ever made a mistake since the dawn of the computing age until two minutes ago still sits at about zero.”

And this brought up a question by Sam Bayer of Covisent.

“Actually incumbent CIOs never admit that they made a bad decision. Their successors get to proclaim that as they dance on the grave of their predecessor.”

To which we replied.

“Excellent point. This puts IT departments outside of the simply measurable realm. Basically the only time you hear about the details is when a customer files a lawsuit, and then, in that case, the fault is entirely with the consulting firm/vendor. Then the consulting firm/vendor says the fault lies entirely with the customer. This system, combined with where reviews are rigged on G2Crowd as we covered in the article Why G2Crowd Has False Information on S4HANA and Gartner as we covered in How Gartner is Similar to the Devil Wears Prada means that information about failures or limitations almost entirely come from personal connections. What I know about HANA is not public, it is because of people reaching out, but not high-level people, they are too far in The Matrix, rather I am contacted by those doing the work that have the unrealistic expectations placed upon them from their managers. The industry lacks any type of quality control. At many vendors, this is less of a problem because they do their own quality control, but at a vendor like SAP that constantly releases immature products, it a serious problem. As an example, I was recently contacted about a need for 4 EWM consultants from Deloitte. EWM is a dead application that has failed everywhere it has been attempted. But Deloitte is pitching it anyway, because their SAP consulting practice can only recommend SAP. That implementation is destined to fail before it begins.

References

HANA & S/4HANA Question Box

  • Have Questions About S/4HANA & HANA?

    It is difficult for most companies to make improvements in S/4HANA and HANA without outside advice. And it is close to impossible to get honest S/4HANA and HANA advice from large consulting companies. We offer remote unbiased multi-dimension S/4HANA and HANA support.

    Just fill out the form below and we'll be in touch.

TCO Book

 

TCO3

Enterprise Software TCO: Calculating and Using Total Cost of Ownership for Decision Making

Getting to the Detail of TCO

One aspect of making a software purchasing decision is to compare the Total Cost of Ownership, or TCO, of the applications under consideration: what will the software cost you over its lifespan? But most companies don’t understand what dollar amounts to include in the TCO analysis or where to source these figures, or, if using TCO studies produced by consulting and IT analyst firms, how the TCO amounts were calculated and how to compare TCO across applications.

The Mechanics of TCO

Not only will this book help you appreciate the mechanics of TCO, but you will also gain insight as to the importance of TCO and understand how to strip away the biases and outside influences to make a real TCO comparison between applications.
By reading this book you will:
  • Understand why you need to look at TCO and not just ROI when making your purchasing decision.
  • Discover how an application, which at first glance may seem inexpensive when compared to its competition, could end up being more costly in the long run.
  • Gain an in-depth understanding of the cost, categories to include in an accurate and complete TCO analysis.
  • Learn why ERP systems are not a significant investment, based on their TCO.
  • Find out how to recognize and avoid superficial, incomplete or incorrect TCO analyses that could negatively impact your software purchase decision.
  • Appreciate the importance and cost-effectiveness of a TCO audit.
  • Learn how SCM Focus can provide you with unbiased and well-researched TCO analyses to assist you in your software selection.
Chapters
  • Chapter 1:  Introduction
  • Chapter 2:  The Basics of TCO
  • Chapter 3:  The State of Enterprise TCO
  • Chapter 4:  ERP: The Multi-Billion Dollar TCO Analysis Failure
  • Chapter 5:  The TCO Method Used by Software Decisions
  • Chapter 6:  Using TCO for Better Decision Making