SAP HANA 大裁员:它怎么了

Executive Summary

  • SAP recently had major layoffs in its HANA group.
  • We analyze what this likely means for HANA.

Chinese Version of This Article

This article was originally written in English and became very popular in China. It was translated at a website in China and then removed for some reason. We copied a saved version of that article that we had to the site. This is our content after all. Note to the people that copied this to their site, this is our content, and you are not supposed to just copy it to your site. Lets have some respect for the work put in by others.

Introduction

2019年3月6日星期三,SAP对其高级HANA职位做出了重大调整。SAP解雇了所有顶级HANA开发人员,并且解雇了HANA实验室的主管。加上最近解雇的SAP首席技术官Bernd Leukert。在本文中,我们将回顾这些变化的重要影响以及HANA的进展。

HANA的重要背景

HANA是一个构思欠佳的数据库,其基本设计参数由一个完全没有资格设计数据库的人设定,Hasso Plattner。正如我们在文章中所述,Hasso Plattner和他所带领的博士生发明HANA?SAP为HANA的开发创建了一个有预谋的错误背景故事,Hasso在他博学的博士的帮助下发明了一个新的数据库。

Hasso has written this story in several books.

Hasso在SAPPHIRE和无数文章中重述了这个故事。这个故事完全是错误的,这意味着每次重复Hasso都会撒谎。事实上,所有这些技术都是在HANA“创建”之前一年获得的,这些收购并未列入SAP在维基百科上的收购中。

HANA以巨大的技术债务开始其生命,因为它的基本设计从未有任何意义。Hasso最终选择了另一位非常不合格的人来管理HANA的发展 – Vishal Sikka。 Vishal Sikka几年前离开SAP去了Infosys,但SAP在新任CTO Bernd Leukert的领导下,在HANA方面取得的进展很小,他没有资格成为CTO,甚至不如Vishal Sikka领导下HANA取得的进展。

HANA在哪里引领行业?

HANA领导行业的唯一领域是Marketing Claims。在Brightwork,我们对主要数据库供应商以外的任何实体的HANA进行了大量研究,由于他们与SAP的合作协议,他们都无法发布他们所拥有的信息。我没有和SAP之外的任何一个不懂数据库的人谈过SAP的Claims。

HANA不在SAP客户之外使用。如果HANA是SAP所说的,那就很奇怪了。如果HANA有效,为什么它的实施仅限于少数几家在购买HANA之前已经是SAP客户的公司?

伪创新的HANA

技术公司夸大其技术创新是很常见的。正如我们在“公共云革命:开源如何取代私有IT巨型供应商”一书中所述,私营部门公司参与的一项主要策略是从公共领域撤出,并假装创新是他们的。从制药公司到软件公司的每个人都经常这样做。 SAP是一位声称因未参与的创新而获得赞誉的大师。

HANA是伪创新,正如我们在《如何理解HANA伪创新》一文中所述。 SAP已经对其他数据库进行逆向工程,并重命名项目以隐藏逆向工程设计,SAP为HANA花费的资金只是为了简单的重复造轮子?SAP已经无法为数据库创建新的贡献。它的设计与数据库设计的完全相反,正如我们在如何理解AWS的多基础与SAP的单基础方法中所述。这一切都不应该那么难理解,因为SAP关于HANA的陈述经常违反数据库理论。

今天,SAP关于HANA的许多声明都可以穿插Dan Quayle或Sara Palin的引用,而且看起来并不一致。Steve Lucas提供的一些最荒谬的内容,正如我们对Steve Lucas 文章的分析关于HANA Oracle不会告知你的事情。

更多人似乎没有注意到这一点,这表明SAP顾问和员工膜拜SAP高级人员所声明的任何信息。

当来自SAP的高级别人员发表声明时,大多数SAP员工的大脑都会发生奇怪的事情。他们似乎没有问“等等,这有什么意义吗?”相反,信息直接进入大脑而没有过滤。自HANA首次推出以来,SAP员工现在一直在重复关于数据库的荒谬事情。这很奇怪,因为对于SAP员工来说,这些说法似乎完全正常,而对我们来说,这些说法看起来像是一个只是在制造东西的人的提议。

HANA的最初构想

HANA总是构思不佳,在市场上没有任何实际用途。我们对全球12个HANA实施报告的评估表明,它必须是市场上销售的最高维护数据库。我们跟踪的其他数据库都不是那么不稳定,需要很多其他组件才能正常运行 – HANA与各种创可贴相结合,这些辅助工具是将HANA推出市场所必需的,也是高度分散的开发领导力的自然结果。 HANA是数据库的黑洞,不断吞噬IT预算。我们跟踪的唯一适度成功的实现是针对HANA上的BW,但HANA仅在旧硬件上优于旧版本的Oracle和DB2。事实上,正如我们在文章中讨论的SAP HANA利益的多少硬件负责人所做的那样,大部分性能改进都不适用于更新和更大的硬件?

HANA没有竞争数据库的性能优势,在解决其规模巨大的内存占用空间方面遇到了巨大的问题,正如我们在HANA占用其他数据库内存30到40倍这篇文章中所述。

HANA的真正目的

SAP不断向客户介绍HANA的好处,但经过广泛的评估,HANA对客户没有任何好处。任何使用HANA替换DB2或Oracle或其他数据库的客户都不会看到分析性能方面的改进(相比现代版本的DB2或Oracle,即使是在较小的硬件占用空间上),但客户在事务处理和处理密集型方面都会出现显着的性能下降像我们在如何解释HANA上的MRP性能问题一文中所述的MRP等操作。

HANA的真正目的很简单。这是为了将促使Oracle退出他们的客户并为SAP获取更多的收入(SAP已经为Oracle的客户增加了收费)。Hasso和Larry已经陷入了长达数十年的根深蒂固的敌意,HANA是Hasso刺向Larry的一种方式……当Hasso的帆船在他们的一场比赛中遇到机械问题时,Larry可能不会停下来协助他。 老实说,Hasso受到自负和情绪的驱使,这可能是Hasso在头脑里第一次种下要开始做HANA的种子。这个假设最初是通过与Oracle / SAP领域多年经验的联系人向我提出的,但不希望被识别出来。

我不能证明这是真的,但如果是真的,它会解释很多看起来不合理的事情,而不是有其他什么原因。如果有人读过其他Brightwork文章,很明显我们不是Oracle的粉丝。我们认为Oracle是一个垄断供应商,应该由FTC分解。因此,这些陈述并非来自对Oracle的任何忠诚,而是来自数据库的事实特征。这同样适用于IBM,以及另一家供应商。但是,我们不允许我们对Oracle的不屑或IBM的业务实践影响到我们的技术观察。

HANA开发的问题

HANA推出了一项非常夸张的营销活动,正如我们报道中所提到的,SAP对HANA的不懈努力是否得到了汇报呢?

但是,除了几乎无法满足任何最初的声明之外,HANA仍然无法满足这些声明,而HANA根本就没有在这些声明中取得进展。

我们的观点是原罪是让Hasso设定了设计参数。正如我们一再声明的那样,Hasso不是一个技术性的头脑,他是我们在Hasso Plattner博士学位所涵盖的推动者吗? SAP的另外三位联合创始人更多的是技术人才。由于他是最后一位创始人,他基本上因为他们的贡献而受到赞扬。

听Hasso或阅读他的书的人显然没有注意到他对技术没有特别的洞察力这一事实。在读比尔盖茨所写的任何内容时,我们都会得到同样的印象拥有大量资金并不会转化为洞察力,但对于那些实际上并没有关注信息而非个人力量的人来说,这似乎已经失去了。

解雇 / 裁员

SAP不得不裁掉那些一直在误导自己的员工。因此,如果你在SAP的Leonardo下工作,那么你可能不得不转出或被解雇,因为Leonardo已经死了。这就是失败产品的情况。

HANA组刚刚遭遇裁员的打击。但是,HANA员工也应该被解雇。这听起来可能有些苛刻,但是如果您有一个失败的产品,它从其他满足预期的产品中吸收了IT预算,那么其他供应商当然可以声称他们应该得到这些收入。这应该是一个竞争激烈的市场的运作方式,而不是为了维持就业而维持那些声称拥有夸大权利的不合格产品。

但是,我认识和辩论的大多数SAP顾问似乎对竞争市场没有任何兴趣。他们希望HANA能够成为世界上最好的数据库,无需参与竞争。他们希望在简历中添加热门技能并尽可能多地获得报酬。

对HANA来说,事情会变得更加困难。SAP无法解决双模式处理,这使他们对S/4HANA的总体策略陷入了严重的困境。这只是对HANA不利的因素之一。

为什么HANA是反潮流

正如我们在文章中所述,HANA的在阳光下的日子终于结束了,SAP已经从HANA转变为主要营销手段。然而,随着Leonardo的过世,目前还不清楚SAP现在将转向什么。但HANA的夸张最终已经赶上了它,而且,SAP的内部团队正在反抗将过多的注意力和不成比例的资源分配给HANA。

多年来,HANA一直受到保护,因为每个人都担心与Hasso相矛盾,但随着Hasso年龄不断增长,HANA继续暴露,HANA的日子已成为SAP的核心重点。如果SAP认为过去的成功是基于差异化的技术实力,那就严重错误了。 SAP的主要区别在于它能够建立合作伙伴关系,并建立能够推荐SAP处于财务优势地位的大型和强大公司。从本质上讲,它是一个促进腐败的高功能机器。但SAP越来越认为它的成功是建立在技术差异的基础之上的 – 而且它正在给它们带来麻烦。

如果发生以下情况,毫无疑问SAP会更好:

1、SAP应该没有数据库。

2、SAP应该从未开发过HANA。

3、SAP应该永远不会获得Sybase(其中超过1/2的用于移动性,结果证明它不合法)。

4、当所有早期问题浮出水面而不是翻倍时,SAP应该纠正并抛弃HANA。

HANA的病?

SAP公司的其他组实际上对HANA感到了厌倦

SuccessFactors管理层拒绝将数据库换到HANA。

自首次推出以来,HANA一直在从其他应用程序中获取收入,因为其他应用程序的折扣已经增加,以减少对HANA的折扣,这对SAP的内部会计造成了严重破坏,使得HANA看起来比它更成功。

这是由彼得·戈德马赫(Peter Goldmacher)提出的,他解决了SAP多年前提出的会计技巧。他因为不知道自己在做什么而受到SAP的严厉批评,然后SAP在这个问题上变得黑暗。

我们对HANA的警告

我们认为最近的解雇是SAP认识到其与HANA的发展战略/方法不起作用。而且早就应该来了。但问题是很难看出HANA是如何恢复。它总是有不可能的设计参数,从那时起就一直在努力满足这些设计参数。问题是,它无法满足它们,这可能是所有抨击的主要原因。即使拥有比SAP更多数据库经验和人才的甲骨文也没有以满足SAP声称的方式推出多模式数据库。如果Oracle无法做到这一点,很难看到SAP或其他任何人这样做。我们的观点与Bloor Research的结论相同,正如我们的文章中关于Oracle内存中的Bloor研究的准确性,这与AWS的相同,即数据库应该专门用于处理任务。

如果我为某人设定了一项不可能完成的任务,那么他们就无法达到它。他们效率低下。这是因为不可能的目标会产生功能障碍,它会吸引像维萨尔•西卡(Vishal Sikka)或贝恩德•勒克特(Bernd Leukert)这样的人,他们会通过告诉Hasso和其他人他们正在取得进展而保持高调的立场。只有可实现的目标才是动机。 Hasso设定了设计参数,但后来却不知道如何满足它们。然后他把目标交给了另外两个也不知道如何遇见他们的人,但他们说过了。

我们一直在等待SAP将兔子从他们的帽子中变出来,已经八年了,没有任何兔子出现。多年来我们一直在讨论SAP资源,正如我们在如何避免您错过HANA这一文章中所述。很明显,那些人要么不知道他们在谈论什么,要么在撒谎。另一方面,SAP的许多人认为如果他们只是重复SAP的谈话要点,他们就会做好自己的工作。作为HANA周围虚假信息的最大传播者之一,John Appleby,我们曾在多篇文章中讽刺过,其中包括John Appleby如何错误地了解他的HANA预测,似乎已经从出版界消失了。

所有这些人现在看起来都很傻。最后,关于SAP是否具有在其他数据库供应商中并不是很优越的数据库知识,本书尚未公布。 SAP没有。

未来HANA开发的实际情况

因此,对于HANA的客户来说,他们被自己的购买和前景所困,HANA未来的改进将使其达到设计目标的可能性非常低。HANA仍然不稳定,这是8年前引入的。此时的问题不能归结为“将bug排除”。

这就是为什么我们要发出这个特别的警告,说我们已经完蛋了。SAP已经成功地从HANA获得了短期资金,但这不是一个可持续的战略。总的来说,HANA对SAP来说是一个巨大的干扰。

现在怎么办?

问题是如何处理HANA。很多读者会说……

“好吧,很容易指出手指,但现在呢?”

首先,我们先指出了事实。 SAP客户唯一要做的就是避免与HANA混在一起,而是阅读我们的研究而不是听Deloitte或埃森哲,他们生活中唯一的目标是最大化他们的计费时间。而且所有意图和目的都可以被高端鹦鹉所取代,正如我们在SAP咨询公司和鹦鹉之间的区别是什么?

所以这不是后见之明,我们对这个问题有先见之明,不是因为我们是魔术,而是因为我们把工作放在了研究上,因为我们能够发布我们发现的东西,因为我们缺乏与SAP的任何腐败关联。这是一个将我们与几乎所有SAP信息提供商分开的功能。

References

https://db-engines.com/en/ranking

https://www.businessinsider.com/sap-restructuring-jobs-2019-1

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

Where Did All of the Pro HANA Resources Disappear To?

Executive Summary

  • For years HANA resources talked a brave game.
  • However, in the March 2019 layoffs, HANA resources have become quiet as a mouse.

Introduction

We discussed the topic of the disappearing HANA resources with Eduardo Muniz at the Advantage Group.

Eduardo’s Observation

Shaun Snapp. Interesting that all SAP Conversationalists that challenge articles like yours and profited from being behind SAP are completely mute. No comments….

Our Response

Good point. I am expecting a few however because this article is driving a lot of traffic. Most likely the comment will be very much filled with gratuitous personal attacks. The last argument used was that no one should comment at this time because it is inhumane. SAP resources have particular rules about when SAP can be fact-checked. Its like one day every four weeks is when fact checking is allowed, between the hours of 3 AM and 5 AM. But outside of that designated time, it is considered inappropriate and unprofessional. So it is important to keep away from the evidence and to focus on me and Brightwork. I am waiting for some SAP resource to blame Brightwork for the issues with HANA. There was literally an army of pro-HANA advocates that are becoming increasingly silent.

Conclusion

Resources like John Appleby of Bluefin Solutions who spread so much false information about HANA are now nowhere to be found, and he won’t account for How John Appleby Was So Wrong About His HANA Predictions.

They are now nowhere to be seen in the media landscape for HANA and won’t account for the previous fallacious information they published.

After all the brave talk about how HANA would change the world, after repeating everything that SAP and Hasso Plattner said, and where we speculated What is the Difference Between an SAP Consulting Company and a Parrot on HANA?, HANA resources have become increasingly silent.

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.

References

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

Did SAP Move SuccessFactors to HANA?

Executive Summary

  • SuccessFactors has recently been migrated to HANA.
  • SAP is using this to promote HANA, but what are the real reasons for the move.

Introduction

I have had a few people reach out to me on the article SAP’s Layoffs and a Brightwork Warning on HANA and state that SuccessFactors is basically migrated to HANA. This article by SAP supports this.

Although press releases on SAP’s website are only semi-reliable.

Analysis of the SuccessFactors HANA Migration

So first, this is quite recent. Second, we have it from several resources that worked for SAP that the SuccessFactors team resisted HANA for years because they did not think it would do anything for them or for their customers.

And of course, it won’t.

HANA will do nothing for SuccessFactors except increase the maintenance overhead for SuccessFactors.

SuccessFactors is a lightweight application and it outside of HANA’s wheelhouse. And as we covered in numerous articles, HANA has no performance advantage over databases like Oracle and DB2.

Getting Teased by Larry Ellison

Larry Ellison had repeatedly teased SAP about how SuccessFactors ran on Oracle, and other SAP acquisitions still ran on Oracle, which we covered in the article Larry Ellison on SAP and Salesforce Paying Oracle for DB Licenses.

“SAP does not use HANA in the cloud very much. I know that because they keep paying us. They paid us again, this quarter, for Oracle for Concur, Oracle for Ariba, Oracle for SuccessFactors,” he said, naming three cloud companies that SAP acquired over the past few years to jump start its cloud business.”If they’re using HANA for anything, I don’t know about it,” Ellison chuckled.”

This was embarrassing for SAP, and Hasso hates being teased by Larry Ellison — and it does look bad.

And this is why SF was moved to HANA…for PR for HANA.

Is This a Real Port of All SAP Customers?

There is a second question as to what customers are being ported to HANA. As was described by a contact.

“It looked to be like a separate SuccessFactors instance on the cloud SOLELY for use by SAP themselves.”

So let us review the information contained in the press release.

“About 95,000 SAP employees are testers of this cloud solution, which enables them to take control of their own personal HR and employment details, making it easy to initiate, update, and complete their own data changes.”

So SuccessFactors is being tested as of September 2018? SAP was testing the use of HANA for its internal operations.

This quote from March 2018 in Diginomica discusses how the plans to migrate to HANA have been delayed.

“It seems the project had lost momentum by the time Wilson came on board last summer, but she insists that it’s now back on track, mainly because she sees real benefits from moving ahead with it. Already a significant number of customer instances have migrated across, although the largest, as was always the plan, will be the last to move, she tells me.

Three thousand instances is certainly a big advance on the first nine that Kovalevsky told me had been moved back in October 2016. But one has to wonder what exactly was happening throughout 2017, when the migration was originally planned to take place. Not very much of any substance was happening, apparently, but the reasons for that remain an unexplained mystery.

That hiatus has allowed other applications to increase their HANA footprint, and as Wilson explains, that creates a new incentive for SuccessFactors to complete its migration. There are also proof points with S/4 HANA for what can be achieved on the HANA platform. To that extent, by delaying, SuccessFactors is now less of a ‘guinea pig’ for running HANA at scale than it would have been a year ago.”

So something is happening with HANA and SuccessFactors, but it’s not conclusive, and certainly, any information released by SAP is going to overstate how much HANA is being used for SuccessFactors for PR purposes.

Why Was SAP Business One Ported to HANA?

SAP did the same thing for BusinessOne. BusinessOne is sold into midmarket accounts, where HANA is barely found. HANA is the most expensive database that works with SAP and is priced out of mid-market accounts. So why would it make any sense to port BusinessOne to HANA? Again, the reason is for PR.

This port was performed was not for actual use by BusinessOne customers.

The Problem with SAP’s Strategy

And this has been the problem with SAP’s strategy — it has been centered around propping up HANA in multiple dimensions because HANA is really just a liability. It is a liability for customers but also a liability for SAP, which should focus on applications.

One thing that should be questioned is why did the SuccessFactors team resist HANA for so long? HANA was introduced in 2011. SuccessFactors was acquired in the same year. Why did it take 7 to 8 years for this to occur? SAP would prefer if people did not ask this question.

Conclusion

SAP has been undermining its business and causing great internal strife and confusion in order to prop up HANA. The HANA group inside of SAP has been pulling resources from the other application teams, and the reports from the field show constant problems with HANA. People that decry that recent firings of HANA employees from SAP miss the point that HANA can almost be viewed as a parasite on the rest of the SAP business. 

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.

References

https://diginomica.com/sap-successfactors-hana-migration-take-2/

SAP acquires SuccessFactors for $3.4 billion

SAP Is the First Large Enterprise to Run SAP SuccessFactors Employee Central on SAP HANA

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

Did Brightwork Have an Ax to Grind on HANA? What the Outcome Shows

Executive Summary

  • It was proposed that on our HANA analysis, we had an ax to grind.
  • How accurate did our projections end up being, and how sharp was this ax?

Introduction

We received the claim that we had an ax to grind with SAP in the article SAP Layoffs and a Warning on HANA?

This was a constant feature of the response to our HANA coverage from SAP resources. However, as time has worn on, the proponents of HANA have been exposed as providing false information about HANA. This caused Ahmed Azmi to make the following comment.

The Comment

Basically, SAP is pulling the plug on everything developed in house since 2011. Literally everything. It’s all going open-source on AWS, Azure, and GCP.  Billy boy is in trouble. He’s trying to divert attention away from all the crap they built since he came along. He’s now calling Qualtrics the “crown jewel of SAP”.  What happened to HANA?

Who cares.

Funny, they killed Vora and some guy is still talking about Vora on LI.

Remember Fiori? Remember our evaluations on SCP and how its still using http 1.1 instead of 2.0? All killed dead.

Where did all the SAP “experts” we debated go? They attacked us and said we had an axe to grind. Until SAP grinded their ass. I can’t feel any sympathy for them. Sorry but I don’t.

Our Answer

“They are gone like the wind! And you are right…who cares about all of the false claims made about HANA as we covered in When Articles Exaggerate HANA’s Benefits. 

Let us talk about Qualtrics!

For a while we thought that the most important thing in the world was speeding reports — now it surveys. Who knows what it will be next quarter. Now Bill McDermott is paying Bob Evans to write PR releases about how great it was that SAP got robbed on the Qualtrics acquisition as we covered in How Bob Evans Enables PR Placements as Real Looking Articles for SAP.

The next quarterly call should be fun, but unfortunately, the Wall Street analysts are so out of it they won’t know what questions to ask. The ax that we had to grind (which no one explained what that ax was exactly) turned out to be quite accurate. 

Conclusion

Perhaps we should be accused of having a scalpel to sharpen instead of an ax. 

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.

References

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

Does Moving to ECC on HANA or Suite on HANA Make Any Sense?

Executive Summary

  • SAP proposed that ECC customers should move to HANA to prepare for S/4HANA.
  • We evaluate the logic of this proposal.

Introduction

We received the following question in our article on SAP Layoffs and a Warning on HANA?

The Question

“You left out “Advice for ECC customers” contemplating moving to SOH. They should continue to run their stable ECC on AnyDB and upgrade to the latest versions to be able to use new features such as In-memory computing without having to make changes to their ABAP codings, while waiting for the dust to settle on all the reorganization going on.”

Our Answer

Moving ECC onto HANA, or as you say SOH never made any sense. The original argument was that it would prepare a company to move to S/4, but it was really just a way to sell HANA licenses. There were so many things like this that SAP and consulting firms proposed, like running a HANA sidecar, etc. All of these leveraged the idea that HANA was inevitable. But now it is quite clearly not inevitable. And why SAP stopped reporting HANA customer numbers back in 2015. http://bit.ly/2SZ2Ipb

I recall all of this because I supported SAP sales initiatives back in the heyday of the HANA zeitgeist. The sales teams I supported said all kinds of things that look increasingly inaccurate in retrospect.

So here are a few critical points.

  1. Customers that move ECC to HANA will see no performance improvement over whatever database they replace. ECC cannot leverage the analytics benefits of HANA, because ECC has very little reporting. And AnyDB already has in-memory/multimodel in the more recent versions of their databases.
  2. Customers that place ECC on HANA will see more expense.
  3. Getting ECC on HANA is not a stepping stone to anything. It is merely a waste of IT budgets.

Conclusion

ECC on HANA has no legitimate logical support.

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.

References

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

The Problem with SAP User Groups on S/4HANA for AnyDB

Executive Summary

  • SAP took advantage of customers by restricting S/4HANA to HANA.
  • How can SAP be pressured to open up S/4HANA to other databases?

Introduction

This is a perfect time for SAP user groups to bring the pressure on SAP to open S/4HANA to other databases. However, who can do this?

The Uselessness of SAP User Groups

Unfortunately, while the interests of SAP customers is enormous on this topic, no SAP user group is willing to confront SAP with this demand. Each of the user groups is too chummy with SAP and therefore cannot adequately represent the interests of the users. ASUG members, in particular, could ask “what are you good for?”

ASUG is useless outside of setting up conferences and figuring out where booths should go, managing the catering for events, etc. You can’t trust them to moderate any disagreement with any objectivity with SAP, because SAP tells them what to do. ASUG is a castrated entity and holding pen for CIOs that are between SAP gigs that care more about their relationship to SAP than any of the companies that are ASUG members which we covered in the article How ASUG Lost Its Way and Sold Out to SAP.

Conclusion

It this amazing when you think about it. Consulting firms, user groups, Gartner and Forrester — SAP has infiltrated them all, and none of them represent the interests of customers. Only DSAG seems even to attempt to challenge SAP.

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.

References

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

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

Why Did SAP Stop Reporting HANA Numbers After 2015?

Executive Summary

  • SAP reported customer numbers on HANA — right up until 2015.
  • The question we cover is what happened to this reporting and what it means.

Introduction

SAP has two ways of speaking in general. One is when they are speaking to an audience that is compliant, like at SAPPHIRE and on analyst calls. On analyst calls SAP makes confident statements about the growth of its products, but the evidence is normally lacking. In this article, we will address the peculiar decline in reporting on HANA implementation numbers.

The Diginomica Article

In Q2 of 2015, one of the last definitive statements around customer numbers was issued. Diginomica is paid by SAP, so they are a compliant media outlet for them. Every single time we evaluate the accuracy level of an entity that is funded by SAP, we find high levels of inaccuracy. And this has been true of every Diginomica article we have reviewed.

The revenue growth from HANA is described as explosive by John Appleby.

“…the explosive revenue growth from HANA continues, even if average deal volume has decreased, because there are plenty of sell-ons to existing customers. Therefore your original projections are probably about right. This means that HANA is supporting core revenue quite significantly by now. But also, every deal is a HANA deal, and deals are bundled.” – John Appleby

John Appleby was a primary shill for SAP in the past but has since fallen out of favor with SAP and no longer writes on HANA. But at this time in 2015, he was a primary source of information on HANA.

After Appleby, one of other least accurate sources of information on SAP, is Ron Enslin, and he had the following to say.

“This quarter, the number of HANA customers surpassed 7,200 compared with 3,600 a year ago.”

So there is the definitive quote. 7,200 customers in the 2nd quarter of 2015.

Dennis Howlett, the article’s author stated the following:

“This is a crucially important point because now, SAP is recognizing the need to be aligned to ‘solving the unsolvable’ and ‘imagining the unimaginable’ problems that former board member Vishal Sikka, now CEO Infosys envisioned back in 2010-12 and which he is carrying through in his current company.”

This is an amazing quotation, because it is a writer repeating another highly unreliable source, Vishal Sikka, without even filtering the observation. Furthermore, even in 2015, it was known that Vishal left SAP under unusual circumstances.

Where Are the 2016, 2017 or 2018 HANA Customers?

We searched online for HANA customers in 2016, 2017 and 2018 and could not find any statements from SAP on HANA customer numbers. If the growth was explosive in 2015 — why did the reporting of customer numbers stop in 2015? Interestingly, SAP appeared to change the narrative to S/4HANA, and began quoting S/4HANA customers numbers rather than HANA customers.

The Customer Estimate from iDatalabs

We found that iDatalabs tracks the number of HANA customers. iDatalabs is a sales intelligence firm, so they profile the usage of applications and databases in order to sell the data to companies that want to sell into customers that have ABC or XYZ product already.

We have reviewed iDatalabs in the past and found their estimates to seem reasonable, and they do not have an incentive to overestimate or underestimate the number of customers.

“We have found 7,370 companies that use SAP HANA. The companies using SAP HANA are most often found in United States and in the Computer Software industry. SAP HANA is most often used by companies with 50-200 employees and 1M-10M dollars in revenue. Our data for SAP HANA usage goes back as far as 3 years and 9 months.”

If this is accurate it means that SAP has not grown its HANA customers since it last reported the HANA numbers in 2015. For another data point, we went out to DB Engines, which tracks database popularity.

Notice that HANA begins to stall in 2015. Up until that point, SAP had a growth story, but growth was much more difficult to come by after this. Would this explain why SAP simply stopped reporting customer numbers? 

Customer Numbers Versus Number of Instances

A customer that brings buys a single instance of HANA is a customer of HANA. But one customer can have any number of individual HANA database instances. Therefore, the overall popularity would be measured by the total number of instances rather than the number of customers. Oracle, as an example, will normally have customers that use many instances of their Oracle database.

Top Customers of HANA

iDatalabs lists the following top customers for HANA.

“Royal Dutch Shell PLC shell.com Netherlands >1000M >10000
ICS Consultancy Services icsconsultancy.com India 10M-50M 50-200
Mawai Infotech Limited mawai.com India 10M-50M 50-200
Birlasoft (India) Ltd. birlasoft.com India 200M-1000M 1000-5000
SuccessFactors, Inc. successfactors.com United States 200M-1000M 1000-5000”

Notice that three of these companies are SAP consulting firms, and a fourth (SuccessFactors) is actually an SAP company.

Faux Customers Through SAP Consulting Firms

Something that is not generally explained is that the vast SAP ecosystem adopt SAP products, not to use them internally, but to build skills. Therefore they bring up a demo environment to show customers, and they are counted as a customer of that product. We found this repeatedly in the S/4HANA space, where again, many customers of S/4HANA were SAP consulting firms. This means that a sizable component of the early growth of HANA “customers” was to the consulting ecosystem. It should go without saying that these are not real customers. And when SAP has so many SAP consulting firms that it can transfer licenses to at very low cost, this is a primary way that SAP rigs the growth numbers of new products to make them look more successful than they actually are. By the time the growth slows down (as has now happened with S/4HANA) SAP simply pivots the reporting to a new product, which again is early in its lifecycle and being adopted by the SAP consulting firms.

Conclusion

SAP has grand plans for HANA, and when they did not pan out, SAP stopped reporting HANA customer numbers. This is consistent that when the numbers are good, the numbers get reported, and when they are not, they don’t get reported, and the company moves to reporting on other things. Growth is easy to attain in the beginning, but as a product gets better known, if it is less effective than advertised, its growth slows. And HANA was far less effective than advertized. We began our own coverage on HANA’s inaccuracies around 2016 as evidence began to come in that all was not right on HANA implementations.

References

https://diginomica.com/saps-q2-fy2015-more-color-on-the-results-s4-is-acoming-hana-revived/

https://idatalabs.com/tech/products/sap-hana

https://db-engines.com/en/ranking_trend/system/SAP+HANA

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

SAP’s Layoffs and a Brightwork Warning on HANA

Executive Summary

  • SAP recently had major layoffs in its HANA group.
  • We analyze what this likely means for HANA.

Introduction

On Wednesday, March 6th, 2019 SAP made a significant change to their senior HANA positions.

  • SAP fired all the top HANA developers
  • SAP fired the director of HANA labs

This adds on to the recent firing of Bernd Leukert, SAP’s CTO.

In this article, we will review the important implications of these changes along with HANA’s progress.

Important Background on HANA

HANA was an ill-conceived database that had its basic design parameters set by someone entirely unqualified to design a database, Hasso Plattner. As we covered in the article Did Hasso Plattner and His Ph.D. Students Invent HANA?

SAP created a premeditated false backstory to HANA’s development where Hasso with the help of his scrappy Ph.D.’s invented a new database.

Hasso has written this story in several books.

Hasso has retold the story at SAPPHIRE and innumerable articles. This story is entirely false, which means Hasso is lying every time he repeats it. The truth is all of the technologies were acquired a year before HANA was “created” and these acquisitions are not listed on SAP’s acquisitions at Wikipedia.

  1. HANA began its life with enormous technical debt because its basic design never made any sense.
  2. Hasso eventually picked another supremely unqualified individual to manage HANA’s development, Vishal Sikka. Vishal Sikka left SAP several years ago for Infosys, but SAP has made very little progress with HANA under the new CTO Bernd Leukert, who was no more qualified to be a CTO than Vishal Sikka or to lead progress on HANA.

Where Does HANA Lead the Industry?

The only area where HANA leads the industry is in the marketing claims. At Brightwork we have performed the most research into HANA of any entity outside of the major database vendors, none of whom can release the information they have because of their partnership agreements with SAP. I have not spoken to a single database knowledgable person outside of SAP that is impressed with SAP’s claims.

HANA is not used outside of SAP customers. This is strange if HANA is what SAP has said it is. If HANA were effective, why would its implementation only be limited to a small number of companies that were already SAP customers before they purchased HANA?

HANA as Fake Innovation

It is very common for technology companies to exaggerated their technological innovation. As we covered in the book The Public Cloud Revolution: How Open Source is Displacing Proprietary IT Mega Vendors, a major strategy engaged in by private sector companies is to pull from the public domain, and pretend that the innovation was theirs. Everyone from pharmaceutical companies to software companies routinely does this. And SAP is a master at claiming credit for innovation they were not involved in.

HANA is fake innovation as we covered in the article How to Understand the Fake Innovation of HANA. SAP has been backward engineering other databases and renaming items to hide the backward engineering as we covered Did SAP Simply Reinvent the Wheel with HANA? With all of the HANA funding, SAP has been unable to create new contributions to databases. And its design is the exact opposite of where database design is going as we covered in How to Understand AWS’s Multibase Versus SAP’s Single-base Approach. This all should not have been that difficult to understand, as SAP’s statements about HANA routinely violated database theory.

Today many of SAP’s statements about HANA can be interspersed with quotes from Dan Quayle or Sara Palin without seeming at all incongruous. Some of the most ridiculous provided by Steve Lucas as we covered in our Analysis of Steve Lucas’ Article on What Oracle Won’t Tell You About HANA.

The fact that more people don’t seem to notice this, shows the deeply propagandized nature of SAP consultants and resources. Any information stated by a high-level SAP resource must be worshipped.

Something odd happens to the brains of most SAP resources when a high ranking person from SAP makes a statement. They don’t seem to ask “wait, does this make any sense?” Instead, the information gets mainlined directly into the brain without filtration. SAP resources have been repeating ridiculous things now about databases since HANA was first introduced. Its odd, because to SAP resources these claims seem perfectly normal, whereas to us, these claims look like the proposals of someone who is simply making things up. 

The Problem With the Initial Conception of HANA

HANA was always poorly conceived and it serves no real purpose in the market. Our evaluation of 12 reported HANA implementations worldwide indicates that it has to be the highest maintenance database that is sold in the market. No other database we track is so unstable and requires so many other components to run properly — HANA is held together with various band-aids that were necessary to get HANA out the door and are the natural outcome of highly fractured development leadership. HANA is the black hole of databases, continually swallowing IT budgets. The only moderately successful implementation we have tracked are for BW on HANA, but HANA only outperforms older versions of Oracle and DB2 on older hardware. In fact, much of the performance improvement is unaccounted for more updated and larger hardware as we covered in the article How Much is Hardware Responsible for SAP HANA Benefits?

HANA has no performance advantage over competing databases, has enormous problems addressing the giant memory footprint it is sized for as we covered in the article How HANA Takes 30 to 40 Times the Memory of Other Databases.

The True Purpose of HANA

SAP constantly talks up the benefits of HANA to customers, however after extensive evaluation, HANA has no benefit to customers. Any customer that replaces DB2 or Oracle or other databases with HANA will see no performance improvement in analytics (versus modern versions of DB2 or Oracle even on smaller hardware footprints), but customers will see a significant performance degradation in both transaction processing and in processing intensive operations like MRP as we covered in the article How to Interpret the Performance Problems with MRP on HANA.

The true purpose of HANA is simple. It is to push Oracle out of accounts and to capture more of that revenue for SAP (SAP already upcharges customers for Oracle). Hasso and Larry have been in a multi-decade deep-seated animosity towards one another, and HANA was a way for Hasso to stick it to Larry….perhaps for not stopping and assisting him when his sailboat had mechanical problems in one of their races. Honestly, Hasso is so driven by ego and emotions, this may have been the first seed in Hasso’s mind to start HANA. This hypothesis was first proposed to me by a contact in with many years of experience in the Oracle/SAP space, but who would not want to be identified.

I can’t prove it is true, but if true, it would explain a lot of things that don’t seem to make any sense without some ancillary reason.

If anyone has read other Brightwork articles, it will be apparent that we are no fan of Oracle. We think Oracle is a monopolistic vendor that should be broken up by the FTC. So these statements don’t come from any allegiance to Oracle, but the factual characteristics of the databases. And the same applies to IBM, another vendor whose business practices we are not high on. However, we don’t allow our disdain for Oracle or IBM’s business practices influence our technical observations.

The Problem with HANA Development

HANA came out with a marketing campaign that was enormously exaggerated as we covered in Has SAP’s Relentless HANA Push Paid Off?

However, in addition to not being able to meet almost any of the initial claims, HANA still cannot meet these claims, and HANA is simply not making progress towards these claims.

Our view is that the original sin was having Hasso set the design parameters. As we have repeatedly stated, Hasso is not a technical mind, he is a promoter as we covered in Does Hasso Plattner Have a Ph.D.? The other three co-founders of SAP were more of the technical talent. As he is the last remaining founder, he has essentially taken credit for their contributions.

People that listen to Hasso or read his books apparently don’t pay attention to the fact that he is just not particularly insightful in technology. We get the same impression when reading anything Bill Gates writes. Having large piles of money does not translate into insight, but this seems to be lost on people who don’t actually pay attention to the message rather than the power of the individual.

The Firings/Layoffs

SAP is having to lay off people in areas where they have been misrepresenting themselves. So if you work in Leonardo in SAP, you are probably going to have to transfer out or get laid off, because Leonardo is dead. And that is what happens to failed products.

The HANA group just got hit with layoffs. However, HANA resources should get laid off. This may sound harsh, but if you have a failed product that sucks the IT budget from other products that do meet expectations, other vendors can certainly claim that they deserve those revenues. That is supposed to be how a competitive market works, not where incompetent products with exaggerated claims are kept on life support so that employment can be maintained.

However, most of the SAP consultants that I know and debate don’t seem to have any interest in a competitive market. They wish for HANA to be knighted as the best database in the world, without ever having to compete. They wish to add hot skills to their resumes and get paid as much as they possibly can.

Things are going to get a whole lot more difficult for HANA. SAP cannot solve the dual mode processing, which puts their overarching strategy for S/4HANA in a serious pickle. And that is just one of the factors working against HANA. 

Why The Tide is Moving Against HANA

As we covered in the article HANA’s Time in the Sun Has Finally Come to an End, SAP has transitioned away from HANA as the primary marketing tentpole. However, with Leonardo dead, it’s unclear exactly what SAP will now transition to. But HANA’s exaggerations have finally caught up with it, and furthermore, the internal groups in SAP are rebelling against the overarching focus and disproportionate allocations of resources that go to HANA.

For years HANA has been protected because everyone fears contradicting Hasso, but as Hasso continues to age, and HANA continues to get exposed, HANA’s days are numbered as a central emphasis point at SAP. SAP is gravely mistaken if it leads itself to think that its past success was based upon differentiated technology prowess. SAP’s primary differentiator has been its ability to create partnerships and to place large and powerful firms that can recommend SAP in a financially advantageous position to do so. Essentially it is a high functioning machine for corruption promotion. But SAP increasingly thinks that its success was based upon technological differentiation — and it is getting them into trouble.

There is no doubt SAP would have been better off if the following had occurred:

  1. SAP should have stayed out of databases.
  2. SAP should have never developed HANA.
  3. SAP should never have acquired Sybase (more than 1/2 of which was for its mobility, which turned out to not be legitimate).
  4. SAP should have course corrected and dumped HANA when all of the early problems surfaced rather than doubling down.

Sick of HANA?

Other groups in SAP are literally sick of HANA.

The SuccessFactors management refused to move to it. The overall topic of SuccessFactors on HANA is rife with controversy, and we cover the topic in the article Why Did SAP Move SuccessFactors to HANA?

HANA has been pulling revenues from other applications since its first introduction, as other applications had their discounts increased to reduce discounting on HANA, which has played havoc up SAP’s internal accounting — making it look like HANA is far more successful than it is.

This was was called out by Peter Goldmacher who figured out the accounting trick that SAP was pulling years ago. He was heavily critiqued by SAP for not knowing what he was doing, and then SAP went black on the issue, which we covered in the article Who Got HANA Wrong and Who Got HANA Right?

Our Warning on HANA

The recent firings is in our view SAP’s recognition that its development strategy/approach with HANA is not working. And it is long overdue. However, the problem is it is difficult to see how HANA can be recovered. It always had impossible design parameters, and it has been flailing about to meet those design parameters ever since. And the problem is, it can’t meet them, which is likely a primary reason for all of the flailing about. Even Oracle, which has far more database experience and talent than SAP has not pulled off multimode databases in a way that meet the claims of SAP. And if Oracle cannot do it, it is difficult to see SAP or anyone else for that matter doing it. Our view is the same as Bloor Research’s conclusion as outlined in our article How Accurate was Bloor Research on Oracle In Memory, which is the same as AWS’s, which is that databases should be specialized for the processing task.

If I set an impossible task for someone, then they won’t reach it. They will be inefficient. This is because impossible goals create dysfunction, and it attracts people like Vishal Sikka or Bernd Leukert who will say anything to keep the lie going and keep their high profile positions by telling Hasso and others that they are making progress when they aren’t. Only attainable goals are motivational. Hasso set the design parameters, but then had no idea how to meet them. He then handed the goals over to two other men who also had no idea how to meet them but said they did.

We have been waiting for SAP to pull a rabbit out of their hat for eight years, but no rabbit has been forthcoming. We have debated SAP resources for years as we covered in the article How to Deflect That You Were Wrong About HANA. It is clear that those people either had no idea what they were talking about or were lying. On the other hand, many people in SAP think they are doing their job if they simply repeat talking points from SAP. One of the biggest disseminators of false information around HANA, John Appleby, who we have lampooned in multiple articles including How John Appleby Was so Wrong About His HANA Predictions, seems to have disappeared from the publishing scene.

And all of those people look quite a bit silly right about now. Finally, the book is closed on whether SAP has any database knowledge that is not far superior in other database vendors. SAP does not.

That article on deflecting about being wrong about HANA was written back in 2016, and HANA defenders have become increasingly scarce.

The Reality of Future HANA Development

So for customers of HANA that are stuck with their purchase and prospects, there is now a very low probability of future improvement in HANA that will allow it to meet its design goals. HANA is still not stable and this is 8 years into its introduction. The problems at this point can’t be chalked up to “getting the bugs out.”

This is why we are issuing this specific warning that the jig is up. SAP has been successful in getting short term money out of HANA, but this is not a sustainable strategy. And HANA overall has been a massive distraction for SAP.

What Now?

The question is what to do about HANA. Many readers will say…

“Well it is easy to point fingers, but what now?”

So first, we pointed fingers before the fact. The only thing that SAP customers had to do to stay out of this mess with HANA was read our research rather than listen to Deloitte or Accenture, whose only objective in life is to maximize their billing hours. And for all intents and purposes can be replaced by high-end parrots as we covered in the article What is the Difference Between an SAP Consulting Company and a Parrot?

So this is not hindsight, we had foresight on this issue not because we are magic, but because we put the work in to do the research, and because we were able to publish what we found as we lack any corrupt association with SAP. That is a feature that separates us from nearly every provider of information on SAP.

As for specifics of what to do now, we recommend the following:

Tips for SAP

  1. Multimode databases are no longer a differentiator, and SAP has not gotten the memo because they keep releasing marketing literature that states that it is.
  2. There are very good databases that are multimode that SAP could partner with/resell if they don’t want to port S/4HANA to Oracle. They could simply place their brand on another database, and get rid of HANA development except for support, porting any application to another database that they can mark up. This is where SAP is moving in the cloud, just marking up other people’s products as we covered in the article How to Understand SAP’s Upcharge as a Service Cloud. SAP could do this with databases also. HANA could be sunset and SAP could just have someone else do all the work, but mark that open source database up many times. SAP can come up with some phony backstory that SAP added some “secret sauce” and most IT departments won’t check anyway if any of it is true. If it is blessed as “standard SAP” it will certainly get purchased. The only value add SAP is adding to database development is its customer base, so why not step out of the way and let someone else figure out databases for you? This would allow them to continue to punish Oracle (a major goal of SAP) and get an even higher margin on databases while not doing anything.

Tips For Companies on HANA

  1. For Prospects Looking at HANA: Stop any HANA purchases. If even 1/2 of the things we have documented on HANA were true, that should be enough to stall any HANA purchase.
  2. For Current Customers of HANA: The promised stabilization of HANA is not coming. If HANA is sitting under BW, then it will in most cases make sense to keep it. If HANA is sitting under other non-analytics applications, it should be removed.
  3. For Prospects Looking at S/4HANA: Customers should communicate to SAP that there is no way they will move to S/4HANA until it is opened up to other databases. We predicted S/4HANA would open to other databases in the article Why SAP Will Have to Backtrack on HANA. , which was written in 2016. All the leverage resides with customers as S/4HANA is still not ready to be implemented, so customers should wait on S/4HANA in any case. If enough customers push back, SAP will change its tune and port S/4HANA to AnyDB. And when this does happen it will be introduced by Bill McDermott as either “showing empathy for” or “listening to” customers.  If there were any truly independent SAP user groups in the world, they would advocate for this. But none of the user groups have enough independence to do so.

Tips for Job Seekers on HANA

For years HANA was a hot skill to get on one’s resume. Despite this, there were never that many people working in HANA. So there was always more conversation around HANA, and setting up POCs that true HANA implementation work. HANA is in a way a dream for consultants because it is the highest overhead database that we track, which means that the consultants that are placed will tend to stay on projects longer. However, HANA stopped growing around 2016, so the projected growth never occurred. Because HANA is not effective as anything but as an analytics database, resources that choose to focus on HANA should focus on HANA for BW.

Because of HANA’s technological limitations, HANA will have a hard time growing out of this area. Many companies that had plans to extend HANA from BW, halted those plans as they learned more about HANA.

HANA is the 20th most popular database according to DB Engines, but this overstates HANA’s popularity because part of DB Engine’s measurement method is to account for media mentions, which are exaggerated for HANA due to SAP’s marketing spend. For years HANA coasted on promises and hype, and that can’t continue forever. SAP can only allow HANA to disappoint so many customers before it risks its core business. Therefore, unless resources have a substantial amount of HANA experience on their resume already, it is something that makes sense to steer clear of making a focus for one’s career.

To find out what these changes mean for SAP development, see this article Brightwork Notice: Changes in SAP Development Strategy.

References

https://db-engines.com/en/ranking

https://www.businessinsider.com/sap-restructuring-jobs-2019-1

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

Is It Inhumane to Discuss HANA’s Lies on Post About Job Losses?

Executive Summary

  • SAP recently had major layoffs in its HANA group.
  • The question that is asked is if it is inhumane to describe the problems with HANA that lead to the layoffs.

Introduction

This article is in response to a question we received about our comments related to critiquing HANA on LinkedIn shares for a leading HANA resource at SAP.

The Comment

“Shaun Snapp Ahmed Azmi Having tracked the HANA native dev job market for a year with very little showing up indicates to me it’s a dead end, so I agree with your sentiment anyone with a career invested in HANA needs to wake up. Perhaps sharing it in this specific thread opening with “rough 24 hours” was a little inhumane though. I would, however, object to any suggestion of HANA techie devs ripping off customers – I’ve seen for myself HANA native solutions delivering to customers what simply was not possible before. You put forward a case that should be discussed, that any SAP dev needs to start seriously thinking about, but you only alienate your arguments here given Thomas Jung and Rich Heilman brought such high-quality, hands-on education to so many, hence the hundreds of sincere wishes. Really sad so many losing their jobs and sad that HANA looks only to serve as a DB layer.”

Our Response

First I wanted to say that it seems to be your genuine view that commenting on this post was insensitive. You don’t appear to be using it as a pretext for censoring commentary. Moreover, if you think that then I respect that. What I don’t respect if someone using empathy as an excuse to censor a message. Although the term “inhumane” is a bit over the top. Here are synonyms for the word “inhumane.” ” cruel, harsh, brutal, callous, sadistic, severe, savage, vicious, barbaric, barbarous;”

There is no beating of puppies going on here. If you are using the same word to describe me physically beating up Thomas and stealing his favorite pet like in John Wick then it is probably inaccurate.

Furthermore, there are comments on this share asking “why,” and “seems strange” well if the question can be asked on the post, then the question should be able to be answered. It seems like a lot of SAP resources are not addressing the elephant in the room. This is called confirmation bias, when the individual disregards information that runs counter to their biases. And its on full display in these comments.

I want to address the part of your comment about objecting to suggestions that HANA techie devs have been ripping off customers. First, I did not say that. Thomas Jung is the Chief Product Expert, so he is not just some inwardly focused development resource. He serves as a marketing function for SAP. And a significant part of his job description is to push SAP. So I want to it framed adequately as to whom I am critiquing. Thomas Jung has/had a very good position at SAP, if he can make claims then he should be able to take criticism. I am not critiquing some homeless person here. Thomas Jung will do fine and land on his feet someplace else. Also, there are poor people in society that could probably use the sympathy being directed toward Thomas on this post.

Second, I have investigated numerous HANA implementations and don’t think your statement is possible. Every one of the evaluations that I have performed, the client did not account for key areas of the comparison. I don’t run into IT departments that have any idea how to perform benchmarking or measure results, so unless I see the data and review the case I am naturally suspicious. And I have good reason to be.

For instance, the fact that HANA has so much more hardware than the databased it replaced. http://bit.ly/2BxLoPt Information coming in from global projects shows that HANA has not helped customers. Once the assumptions are controlled carefully, the claimed benefits disappear. So you can reach me offline if you like and I can incorporate your data points into our research. I don’t care either way. If your data points are convincing, I will state they have brought new information to light.

As for your last comment, HANA was never anything but a database. All of the comments around HANA being something other than a database were false, something that SAP has acknowledged (in a way), by changing the names of HANA Studio, HANA Cloud Platform to drop the HANA names as they never had anything to do with HANA. We were right on that, while the SAP resources debated the opposite as we covered here. http://bit.ly/2BGWrab

So it is worse than what you say. It is not only sad that HANA is just a database, but it is not even a very good database, and it is exorbitant in its price and its maintenance overhead.

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