- Steve Lucas stated that SAP would become the #2 database vendor by 2015.
- What happened regarding this prediction?
The following quotations come from the article SAP: We’ll Be No. 2 Database Player By 2015, published by Infoweek on the 14th of December 2011.
You can’t fault SAP for lack of ambition. Just days after announcing its hoped-for $3.4 billion acquisition of SuccessFactors, SAP revealed an aggressive new cloud-apps sales approach, and boldly predicted that it would become the number-two database vendor by 2015.
It’s all part of a company goal to be the no. 1 or no. 2 player in every market that it serves. That mission, articulated at this week’s SAP Influencer Summit in Boston, guides a new go-to-market strategy that led to the creation of a dedicated cloud sales team.
SAP also underscored its seriousness about the database market at this week’s event, particularly its Hana in-memory database technology. Hana was introduced late last year in the form of an analytical appliance, a product that has since racked up $100 million in sales. But SAP is now promoting a wider role for Hana as a replacement for the relational databases running SAP BW data warehouses. SAP says it will eventually be able to run its entire Business Suite on Hana. But the technology must first be recognized as a mission-critical database.
“Hana is a full, ACID-compliant database, and not just a cache or accelerator,” SAP CTO and Executive Board Member Vishal Sikka told InformationWeek, apparently weary of assertions to the contrary. “All the operations happen in memory, but every transaction is committed, stored, and persisted.”
It would have been very odd if HANA were not ACID compliant which we covered in the article How Accurate is SAP on Only HANA Being an ACID Database? All operations will happen in memory, does that does not mean that all data is loaded into memory.
Compression and Elimination of ETL, Stored Procedures, Materialized Views and OLAP Cubes?
“Appearing via videocast at this week’s event, Sikka detailed Hana advantages including advanced compression and the ability to eliminate ETL, stored procedures, materialized views, and OLAP cubes while delivering sub-second performance. In the BW database role, Hana is routinely delivering 1,000 times faster performance than conventional relational databases, he said, while requiring lower-cost hardware investments.”
- SAP vastly overstated the degree of compression Is Hasso Plattner and SAP Correct About Database Aggregates?
- The elimination of ETL or data transformation was based upon a hypothesis of eliminating the data warehouse and performing all analytics on the application. This is a hypothesis that never came true. SAP customers have around the same number of data warehouses in 2019 as they had before HANA was introduced.
- SAP does have stored procedures but calls them “code pushdown” as we covered in the article How Accurate are SAP’s Arguments for Code Pushdown and CDSs?
- SAP also has materialized views, but as with the stored procedure simply renamed them to CDS, also covered in the previous link.
- OLAP cubes have been reduced, but not removed because it would mean breaking down the pre-HANA cubes, so OLAP cubes are still extensively used even when HANA supports BW.
- HANA does not run 1000 times faster than competing “conventional relational databases” and this is inconsistent with Bill McDermott’s claim of running 100,000 times faster as we covered in the article How Accurate Was SAP About HANA Being 100,000x Faster Than Any Other Technology in the World. In fact, both our analysis of benchmarks, (SAP’s and others), as well as reports from the field, indicate that HANA runs no faster than the databases it competes against.
- HANA has the highest hardware costs of any database we track.
SAP Will Become the #2 Database Vendor by 2015
“Many customers just don’t think of SAP as a database vendor. Perhaps that’s why Steve Lucas, global general manager and senior executive, business analytics and technology, made the bold claim here (to the skepticism of many) that SAP would move into the number-two spot in the $20 billion database market by 2015. That total would include SAP’s Sybase unit and it’s ASE and Sybase IQ databases. But SAP would still have to surpass the current no. 2, no. 3 and no. 4 players, IBM, Microsoft, and Teradata, respectively, within just three years.
“It’s a great big, audacious goal, but we want to aim high, and we think we can start in the data warehouse market,” clarified Sanjay Poonen, president, SAP Global Solutions and Go-to-Market, in an interview with InformationWeek. Poonen, who is Lucas’ boss, insisted SAP would continue leave the choice of databases up to its customers. But the company is clearly counting on selling Hana, as well as Sybase ASE and Sybase IQ, into its massive 176,000-strong customer base.”
SAP has come nowhere near meeting this goal. Here are the top databases in popularity according to DB engines.
SAP has two entries in the top 21 databases with Adaptive Server and HANA. However, combined, they are less than 10% of Oracle. And in 2019, we are now 4 years past the prediction year of 2015.
Vishal Sikka receives a 1 out of 10 for accuracy on his HANA comments in this article. Steve Lucas receives a 0 out of 10 for his prediction on SAP becoming the number #2 software vendor.
Search Our Other HANA Content
Financial Bias Disclosure
This article and no other article on the Brightwork website is paid for by a software vendor, including Oracle and SAP. Brightwork does offer competitive intelligence work to vendors as part of its business, but no published research or articles are written with any financial consideration. As part of Brightwork’s commitment to publishing independent, unbiased research, the company’s business model is driven by consulting services; no paid media placements are accepted.
Getting to the Detail of TCO
The Mechanics of TCO
- 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.
- 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