Is it True That Few SAP Customers Care About Databases?

Executive Summary

  • Should SAP’s Claims About HANA Not be Verified Because Most People Don’t Care About Database Performance?
  • How SAP Uses HANA’s Performance Claims to Push for Customers to Switch Databases
  • SAP’s HANA Claims Fact-Checked

Introduction

In a recent article titled SAP HANA as a Mismatch for ERP and S/4HANA.

We received a response that seemed to minimize the importance of our verification of the claims made by SAP about HANA because. as the commenter put it..

“…no one cares about the db outside of a very small tech bubble – it’s all about people and process.”

This statement seems to be an attempt to pivot away from the question of whether SAP’s claims regarding SAP are true.

How SAP Uses HANA’s Performance Claims to Push for Customers to Switch Databases

SAP has very aggressively promoting customers to move to HANA under the logic that the database is incredibly important.

Here are a few examples.

  1. Restricting S/4HANA to HANA has been justified on the basis that no other database can offer acceptable performance versus HANA. SAP has stated that they need to design or optimize S/4HANA around a single database for performance reasons. According to Jon Appleby, who is a proxy for SAP, due to HANA’s capabilities in innovation and unparalleled performance advantage over all other databases that SAP is finished Oracle DB as is covered in the article Why Jon Appleby Was So Wrong In His HANA Predictions.
  2. SAP is proposing, and SAP consulting companies are relaying the message word for word (I have many of the emails that are forwarded to me from the recipients of this advice) that solutions ranging from TPM to CRM need to have HANA or the applications will not properly support the application’s functionality.

This is suspicious. It is dubious because other vendors that I track do restrict the database options of their customers in this way.

SAP’s HANA Claims Fact-Checked

Secondly, SAP’s performance claims for HANA are not only not holding up, every data point we obtain works in the opposite direction from SAP’s claims. One performance claim for HANA is true.

HANA will outperform a non-column data store database for analytics (but only within a data warehouse environment).

For all other database processing, the performance is worse. That is a serious issue that I am not sure how any pivot or alteration of the point of discussion can change what are now quite a few observations of this fact. We are not tracking performance issues with S/4HANA on multiple accounts. These observations tell a story of S/4HANA’s performance negatively impacting the project.

SAP is using the argument of HANA’s performance combined with what appear to me to be faux arguments about application compatibility between SAP’s applications and to their database to push existing databases out of SAP account. If you have read the Brightwork Study into HANA’s TCO, you might imagine that there are most likely severe implications for the customer’s IT budget to following this advice.

Conclusion

As this is a primary strategy of SAP, it would seem to be reasonable to validate if SAP’s statements about HANA’s performance are true. Therefore, we consider it highly relevant as to whether SAP’s claims regarding HANA’s performance are true.

The topic of the compatibility argument that increasing numbers of SAP’s applications are proposed by SAP and by SAP’s consulting partners to only be supported by HANA is another topic.

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

I cover how to interpret risk for IT projects in the following book.

The Risk Estimation Book

 

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Risk Estimation and Calculation

Risk Estimation and Calculation

See our free project risk estimators that are available per application. The provide a method of risk analysis that is not available from other sources.

project_software_risk

SAP’s Misleading Storyline for S/4HANA Being Complete

What This Article Covers

  • How SAP Introduced S/4HANA and its Completeness
  • Becoming Increasingly Complete?
  • The Actual Story with S/4HANA’s Completeness
  • Our Coverage of S/4HANA’s Completeness Versus the Standard IT Media
  • The Attempt by SAP to Minimize the Issue with S/4HANA’s Completeness
  • Computer Weekly as a Passive Message Repeater of SAP
  • Jon Appleby Enters the Funhouse
  • What John Appleby Proposes
  • S/4HANA Finance Implemented by Itself

Introduction

We have covered S/4HANA’s completeness in great detail since around a year and a half after its introduction. While SAP consulting companies and IT media entities have been covering up this story, we published Why the S/4HANA Suite is Not Yet Released.

Recently we found an article that looks quite suspicious to us and attempts to craft the story line around S/4HANA in a way that appears deceptive. In this article, we will explain how SAP coordinates and pays or compensates not only the media entity to distribute their story but how the media entity then go to sources that are both compensated by SAP, all in an attempt to mislead buyers.

How SAP Introduced S/4HANA and its Completeness

Let us begin with how S/4HANA was introduced.

S/4HANA was explained as having two major phases of introduction. One was S/4HANA Simple Finance (which was the new FI/CO). SAP customers were told that the rest of the suite would follow shortly.

This second part did not happen as stated by SAP. We covered the missed deadlines of the rest of the S/4HANA suite in the article The Evidence that S/4HANA Missed its Release Deadlines.

It is now going into 2018, and S/4HANA is still not complete. This means that companies that purchased SAP Simple Finance (now just Finance) under the impression that the rest of  S/4HANA have a problem.

Becoming Increasingly Complete?

SAP has repeatedly released information that has attempted to make S/4HANA seem more complete than it is.

“If you look at the S/4HANA system that we released in November of last year that we are calling 1511, we can say that this is already a complete ERP system,” said Uwe Grigoleit, SAP global head of business development for Business Suite on HANA and HANA applications.”

“Why can we say this? If we are looking at pure modules we are shipping already, S/4HANA spans across financials, material management, inventory management, procurement, distribution, product and planning,” he explained. “It’s going across the vast majority of the ERP system already.”

That statement was made in March of 2016.

As we said at the time,

“This gets away entirely from the question of the completeness of each of these modules. Therefore, Uwe Grigoleit is staying away from whether the modules are complete. Uwe is stating that the modules are being released. But released is not necessarily complete.”

The Actual Story with S/4HANA’s Completeness

In our article Why the S/4HANA Suite is Not Yet Released, we explained.

“There has been and will continue to be a tremendous amount written about S/4 HANA. Interestingly there is lots of confusion as to what parts of S/4 HANA are ready to be implemented. SAP has misrepresented the readiness of S/4 HANA on just about every occasion, and it has an army of SAP partners that do the same.

This army is all about getting S/4 HANA implementation business, so they are actively misleading their prospects about S/4 HANA. Additionally, these partners are also misleading prospects about the consulting experience with S/4 HANA.”

Our Coverage of S/4HANA’s Completeness Versus the Standard IT Media

We have covered in this many times, but the IT media is more often than not the recipient of income from SAP. And therefore, there has been very little coverage of the completeness of S/4HANA.

The Attempt by SAP to Minimize the Issue with S/4HANA’s Completeness

SAP’s communication around S/4HANA’s timelines have been inaccurate since S/4HANA was first released. The lack of S/4HANA’s completeness has been a significant factor as to why S/4HANA has so few go lives globally, as is covered in the article A Study into S/4HANA Implementations. However, SAP can continue to predict future completed states without the worry of anyone publicly calling out SAP for this, because virtually no one fact checks SAP.

One example of the storyline of when S/4HANA will be complete is illustrated by an article that was published by ComputerWeekly in March of 2016 entitled SAP S/4HANA functional completeness in the eye of the beholder.

Before we analyze the article itself, let us explain what ComputerWeekly is.

ComputerWeekly used to be a legitimate IT magazine. However, in 2011 they were purchased by TechTarget. TechTarget is primarily a marketing automation entity that uses various online websites like ComputerWeekly to capture email addresses that are then sold to software vendors. This is covered in the article ComputerWeekly is a Front for Marketing Automation. What this means is that ComputerWeekly will publish whatever its customers, which are software vendors and consulting companies want them to publish.

Computer Weekly as a Passive Message Repeater of SAP

Now that we have explained ComputerWeekly as a passive message repeater for its customers, we can get into the interesting article SAP S/4HANA functional completeness in the eye of the beholder.

In this article, ComputerWeekly uses the following sources.

In this article Uwe Grigoleit attempts to present a storyline where S/4HANA cannot be compared to the functionality in ECC.

“Along the way, SAP S/4HANA is also evolving beyond SAP Business Suite in capability, which in turn starts to change the nature of how you compare traditional Business Suite capabilities to new S/4HANA capabilities.”

Seeing Where Uwe is Going

See what Uwe is going. S/4HANA’s functionality completeness would compare very poorly versus ECC, so Uwe’s simple answer is to do away with the comparison altogether because its “evolving beyond SAP Business Suite.” This is also curious because S/4HANA is exceptionally close in functionality to ECC, except it has less of it.

Uwe is expert at talking in circles as the following quotations also attest.

“For something like maintenance, he said, SAP is changing classical maintenance with machine-to-machine communication, which helps generate “predictive maintenance scenarios.””

It should be clear from this that Uwe is a hype man, and one cannot discern anything from actually listening to Uwe.

Jon Appleby Enters the Funhouse

Next up is Jon Appleby, who ComputerWeekly or TechTarget does not explain has a long history of making inaccurate statements about SAP, and who’s incentives are to sell S/4HANA and HANA business. Yet ComputerWeekly or TechTarget provides no inkling to the reader of Jon Appleby’s background and history. Furthermore, Jon Appleby was most likely provided as a source to ComputerWeekly or TechTarget by SAP.

“In some cases, [you have to] wait 18 months and do a ‘big bang’ implementation, and in other cases [you can] start now, so we can phase the program. Every customer we’re working with is planning that journey to S/4HANA,” said Jon Appleby, global head of SAP HANA for Bluefin Solutions.

“I’ll give you an example,” Appleby explained. “I’m working with a U.S. customer in telecommunications, and the feds have told them they have to change the way they do revenue recognition, which they have to do before April of next year. They don’t think they can do what they need on Oracle, so they want to implement Suite on HANA, which will work well enough to do the new revenue recognition.”

Notice that Appleby accomplishes several things with this quote. First, he takes a dig at Oracle. He does this because Appleby’s company, Bluefin Solutions primarily implements SAP. Curiously, Appleby seems to be supporting the solution for which his company can make the most money. How surprising.

What John Appleby Proposes

Appleby is proposing that companies purchase and implement an application that is not ready to be implemented, and that they simply push off the parts of S/4HANA that are not ready to later parts of the project.

However, first, what will the completed parts of the S/4HANA application connect to? Secondly, how does anyone know when S/4HANA will be complete. SAP badly missed its deadlines up to this point.

And why is Appleby recommending this? Did ComputerWeekly think for a minute that perhaps Jon Appleby has a financial bias in getting companies to use his services to implement S/4HANA?

He goes on to say.

“And what about SAP S/4HANA? “They’re saying, ‘We’ll deal with S/4HANA sometime later.”

So what Appleby is proposing is that customers implement the revenue recognition module first. Then S/4HANA later. But why does revenue recognition have to be implemented at all? Revenue recognition is supposed to be functionality within the ECC FI/CO module. ECC can be updated to the most current version, so why isn’t the latest revenue recognition logic included in this update?

“For a lot of customers who haven’t done a fast close, it’s a quick win. If your finance processes are a little outdated, you can get your finance enhancements all in one go,” Appleby said.

S/4HANA Finance Implemented by Itself

If S/4HANA Finance is implemented without the rest of S/4HANA, expensive adapters must be written back to ECC, as well as parts of ECC deactivated and S/4HANA activated. Why does this give financial enhancement “all in one go?”

Appleby finishes off with a final touch.

So does it matter if SAP S/4HANA is functionally complete? Not necessarily, Appleby said, because each roadmap is unique. “They are all different because every company has different priorities.”

Interesting, so if software that was promised in 2015 is still not ready, then it is not necessarily a negative, because companies have “unique requirements.”

Conclusion

This is the type of article that gets published when media entity conspires with the software vendors, that is a major funder of the entity. Every single source in this article is biased in favor of SAP, and were indeed selected by SAP to be interviewed by ComputerWeekly.

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://searchsap.techtarget.com/feature/SAP-S-4HANA-functional-completeness-in-eye-of-the-beholder

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

The Risk Estimation Book

 

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Risk Estimation and Calculation

Risk Estimation and Calculation

See our free project risk estimators that are available per application. The provide a method of risk analysis that is not available from other sources.

project_software_risk

How to Deflect That You Were Wrong About HANA

Executive Summary

  • SAP and SAP consulting firms have made a large number of false claims around HANA.
  • When confronted with these claims, HANA proponents continually change the topic and deflect to other claims about HANA that are also false.

Introduction to Deflection of HANA Claims

There is a popular trend afoot in the HANA community that comes from either HANA defenders in SAP or HANA defenders in the SAP partner community. I call this pretending you weren’t wrong about HANA. SAP and its partner community have proliferated so much false information about HANA over the past five years. Once called out on it, they need to respond not to be seen as either unknowledgeable or dishonest. There are important principles at work here. Let us take a minute to review them.

  • There is HANA software to be sold!
  • There are HANA services to be sold!
  • It is imperative to be able to continue to mislead customers in an unmolested fashion!

In this article, I will describe the essential tactics that they employ.

First Some Background on the HANA DB

HANA DB was at some point around 2011 approved as the primary marketing tentpole for SAP. Since 2011 Dr. Hasso Plattner has written four books on HANA DB related topics. SAP marketing and sales have released a torrent of information about HANA. My research shows that this information has in just about ever case been either inaccurate or exaggerated. Dr. Hasso Plattner seems to be a true believer in HANA. Somewhere along the way, he seems to have become obsessed with HANA DB technology. People at SAP did not stand up to him and tell him he is overemphasizing on one topic (to the detriment of other important topics). I have brought up on many occasions that processing speed is not even among the top ten items that plague SAP projects. And if you work on SAP projects, it is hard to propose the opposite.

Fear of Confronting Hasso

Instead of having anyone push back on Hasso, SAP went all in on HANA. The problem is that Hasso is not a reliable source of information on computer topics. I have concluded that Hasso Plattner makes up things about as much as Donald Trump. The major difference is that Hasso Plattner is considerably smarter. And he covers topics that are far more sophisticated than the subjects covered by Donald Trump. Thus his deceptions are much harder to ascertain. But if you study Hasso Plattner’s writing and speeches long enough, a pattern of premeditated deception becomes impossible to ignore. The comments he made about a Chinese company that had an MRP run time of 24 hours, which SAP reduced with S4 running on HANA, many months before S4’s production planning module had even been developed is symptomatic of provably false statements made by him. (I have a future example of a very long MRP runtime, but alas the conclusion is not purchasing HANA DB.)

Hasso is much like most of the partners at large consulting companies that I have met. They simply do not care what happens. What they care about is what they can pull over on other people. This is not idle criticism but is based upon quite a few conversations with partners at major consulting companies. What they care about the perception rather than the reality. And they have in fact told me that this is the right way to think.

Follow that Money that Supports False Claims Around the HANA DB

As is usually the case the vast majority of money resides on the side of those that make exaggerated claims. The money is squarely on the side of exaggerating expectations, not on telling people the truth. The truth us much less exciting and does not appeal to the desires of the audience. The audience wants to hear that the thing they purchase will have incredible performance. That everyone who uses it loves it, that it is leading edge, has a low TCO, which it will result in being able to cut overhead, etc..

Things have not changed much since the traveling medicine show salesman. Wall Street wants to hear that SAP is all about both driving innovations through HANA as well as delivering more and more applications through the cloud. Therefore, regardless of what is true, the data will be gerrymandered to give this impression. Quotas must be met, and stock options must be exercised. SAP can choose from an unlimited number of type people who will tell any lie SAP wants in any language it wants in return for money.

For this reason, people in conferences and private visits compete with each other to misrepresent reality.

And the competition is fierce.

SAP Conferences as BS Mills

Conferences like SAPPHIRE and ASUG are filled with false information. Lies were emanating not only from SAP and their partners but employees within customers. They compete in giving mis-impressions on how much progress they have made with SAP’s newest applications. In interviewing companies that interact with SAP and SAP partners and I observe the information that is provided to these enterprises. I find one misleading statement after another. I should not be surprised. The lying in the documentation is simply repeated in the actual sales process.

There is all manner of problems with this overemphasis on HANA DB. But one easy item to point out is that the overall performance of the system does not match the database speed of the system. That is just because you can make the database run faster by say 100 points of measurement does not mean that this 100 point translates to 100 points in application performance. And whatever the improvement in application performance does not translate to business value.

False Performance Enhancements Applied Generally

Think about a Lamborghini Veneno. This $400,000 car has a 750 horsepower engine.

A Honda sedan may have a 100 horsepower engine. Does the Veneno get you around town 7.5 times faster? Of course not. The reason you can’t convince people to sell their house to buy a Veneno is that everyone drives and so they can’t be tricked into thinking their commute will drop to 2 minutes if they buy a Veneno. But not everyone has years of database experience. Thus it is easier to trick them into thinking that HANA might have such incredible benefits. But if they didn’t, and I was unethical, I could simply do the math that 750 hp is 7.5 times more than 100. I would then contend that people that have a 15-minute commute could have a 2-minute commute. That is 13 minutes saved each way, which is 26 minutes a day in extra time saved!

Imagine what you could do with that time back.

Hasso Plattner’s Falsehoods on In Memory and the HANA DB

In Dr. Hasso Plattner’s writings, he seems to propose a direct proportional benefit from database speed to a host of other benefits. This has lead SAP to exaggerate the benefits of HANA. And the primary reason for this is to penetrate into the database layer.That is SAP is willing to mislead as many people as necessary to meet the sales quotas on HANA. People that buy HANA often don’t see the second act coming.

Here is the second act. SAP has some other databases and applications that it wants to sell as a follow-on to HANA. And of course, none of these things will work well with “other databases.” HANA is the wedge to all sort of related items it wants to sell you.

All of this fanciful talk about a brave new world with in-memory computing is part of a campaign to tie companies into a closed system. A system that will benefit SAP. I have seen many companies now with HANA on BW.

Putting HANA on BW

BW is probably the SAP application with the most predicted benefit from HANA. It has not changed things at these companies much at all. In most cases, the business continues to use Excel while the queue of reports that the BW/BI team has to work on continues to grow. This is because new technology was added without asking the fundamental questions about the problems with BW/BI productivity and report usability.

What this means is that software salespeople and those with a sales quota at most IT consulting companies feel perfectly fine in telling a constant stream of lies to customers. Every inaccurate statement is an arrow in their quiver. Even statements that have been proven quite some time ago to be incorrect.

SAP’s HANA DB Claims

The following are good examples of the items that are exaggerated claims by either SAP or SAP partners.

  1. No aggregates EVER!!!
  2. Extreme OLTP performance as well as extreme OLAP performance
  3. Need little RAM as we compress EVERYTHING to very small…
  4. A whole new user interfaces in Fiori.
  5. HANA will lead to business process simplification when used with S4 because the data model has been simplified.
  6. Updates are superfast as we update only one field instead of the whole record
  7. Making use of CPU/RAM at the hardware level.

Every one of these proposals by SAP or by those that have some HANA quota to fill is false.

False Claims About HANA

  1. HANA DB still uses aggregates. There are in fact many good reasons for maintaining aggregates. Reference tables are aggregates.
  2. SAP is not releasing benchmarks on HANA DB for OLTP because as per HANA’s design these benchmarks are likely to be disappointing. But this does not stop SAP from claiming that HANA DB is equally effective at OLTP and OLAP (transactions and reports — excuse me “analytics”)
  3. SAP’s compression estimations are greatly exaggerated and require heavy archival (a cost) and will result in companies having to go back to SAP after the fact to purchase more HANA license GBs.
  4. Fiori is not a complete UI for S4. Instead, Fiori is a niche set of apps. A set of apps has yet to be demonstrated to work any better than the parts of SAPGUI they are replacing. And a set of apps that in 98% percent of cases will only work with applications that sit on top of HANA DB.
  5. S4’s data models are not simplified. There are more tables than ever with a column-oriented database as many of the columns have become their tables. Indexes are eliminated with column-oriented databases. That is a reduction in complexity. But other areas increase in complexity, including the need to rewrite every single adapter that connected to ECC. Simplification of data models (even if true) does not lead to simplified business processes (which is the SAP claim).
  6. SAP never mentions the need to update 20 fields in one record; we end up with 20 updates instead of one update on row-based databases.
  7. The CPU and the RAM are the hardware level. You cannot benefit from using something at a level if it is already used at that level. This would be like saying “you will be able to use the steering wheel at the automobile level.” There is no another way to interpret this except it is a purposely redundant statement that is supposed to sound technical and esoteric. It is designed to impress people who don’t know how software works.

Selling Nonesense

If you sell nonsense for a living, you are not going to stop just because I call you out on it. You need to obscure the issue so you can keep selling nonsense. From financial advising to medicine to IT consulting and strategy consulting, nonsense is a great thing to sell. It is great for your career and your pocketbook. It is about impossible to meet a quota without it.

 Saving that Face

Face-saving. As I learned when I worked in Asia, face-saving is big in Asian culture. And the term was used a lot when I worked there. But while I don’t support mean-spiritedness, people that make big claims that turn out to be the false need to own up to it and be exposed for being wrong. If not we would not have science. We would be more concerned about embarrassing people who were wrong and never make progress. So to protect Stan’s face, we would continue to agree that the moon is made of green cheese.

This is presently a big problem in IT and IT forecasting. I like to say that the only thing anyone is held accountable for regarding prediction is meeting their sales quota. Gartner has quite a poor accuracy level in their forecasts.

  • They were responsible for priming the ERP bubble in the eighties.
  • The marketplace bubble in the late nineties.
  • They are currently pumping up the Big Data and analytics bubble as well as the IoT bubble.

But do you see Gartner paying a financial penalty for being the Helen Keller of IT forecasting? No, they are richer, more powerful and more influential than ever.

Unfortunately, there is no entity that calls out individuals or companies that knowingly distribute false information on IT topics. And this has lead to a bubble in buffoonery.

Diverting Attention from Previous False Statements

I have spent a good deal of time investigating the performance claims and many other claims on HANA DB. Here is what I have found.

  • The uniqueness of HANA’s performance has been explained in my previous articles as entirely manufactured by SAP. There was never any truth to it. The people that proposed this are diminished in my eyes for the lies that they told. At the tip of the lying spear is Dr. Hasso Plattner, but there are plenty of other culprits.
  • SAP has proposed that end of period close, and MRP use is held back by not having a database like HANA. This is false as neither process is a bottleneck at the vast majority of companies. If as a company you have a system processing constraint with either of these processes, you are in the distinct minority. Instead of moving to HANA, you should try to find lower cost ways of figuring out what the problem is. As soon as a person raises either of these issues, I know that one of two things must be true. Either they know its incorrect but are willingly stating that these things are the case. Or secondly, and perhaps what can be more forgiven, they are simply repeating what the read in some SAP marketing material. Let us discuss reasonable expectations. One should not expect account managers or partners who have never touched SAP in 10 years or been on an SAP project to be reliable sources of information on technology topics.

Backflushing is Performed Because of a Lack of Database Speed?

Recently SAP proposed that even backflushing is performed because of a lack of database speed. And that HANA was going to come to the rescue to all these poor companies that have had to perform backflushing because their ECC systems cannot perform goods issue due to system performance problems. This is truly farcical as backflushing moves the goods issue processing from real-time to be run in batch. Can SAP seriously think they can convince people that ECC sitting on a non-HANA database lacks the processing capability to perform something as simple as a goods issue in real time??

Backflushing has never been done (at least in the modern era) because of performance limitations. Backflushing is performed because the company wanted to carry out the activity first and record the issues after the fact. Backflushing is very common in process industry manufacturing. This is because it can often be unclear how much material will be consumed in a manufacturing process.

Diverting Attention

HANA proponents enjoy diverting the attention from the original topic. They gain the high ground by claiming other benefits that come from these other areas of “improvement.” The deflection mechanism is the consistent approach by those who have been consistently wrong on HANA. The algorithm looks like this:

  1. Standard HANA DB Pitch: If you find an uninitiated audience, give the standard line about how HANA is revolutionary due to its speed. Hide the fact that other database vendors have the same technology. Pretend that you invented the idea that data can be stored in an SSD.
  2. Dealing with Hecklers, Malcontents & People that Won’t Accept the Sales BS: If (on the rare occasion) you find an individual who knows this is not true, respond that HANA is much more than a database and about “much more than speed.” Do this even though you know that each of the items that are “not just a database” actually has their names like HANA Studio, HCP. And that these products have no logical reason to have the term HANA in their product name. And further, ignore that SAP’s first promotion of HANA DB has been based upon database speed.
  3. Misdirection: Having regained the argumentative high ground, now make false claims, but now in different areas. I call this maneuver the “Hasso Plattner.” Make so many claims in so many different areas that the person you are speaking to may not feel comfortable addressing them all. Force the respondent to perform research in many different areas to respond to your proposals. But you conduct no research at all! Simply repeat false statements provided to you by SAP marketing.
  4. Use Project “Proof”: Bring up illusory benefits that you have seen at all these clients you have visited. Where HANA is just transforming, the way companies do business. This will also communicate to the LinkedIn community that you are a real expert in HANA. Don’t bring up any complications of HANA. And never discuss costs.
  5. Employ the Concept of Universal Virtue: Talk about how you are all about improvements. And that these things are necessary to make these improvements. Promote the concept that both you and SAP are all about “client value.” I had one commenter state that SAP should be allowed “maximum forgiveness” for any false statements that it made. The reason? Because it was all about moving companies to a “fill in the blank” (digital economy), (memory resident future), (IoT), (running simple),(integrated solutions).

Massive Exaggerations

If SAP has massively exaggerated the issue of HANA DB performance. Both of the perspective of the performance itself as well as the application or business case for that performance. Then that is a problem. It is not an adequate or honest response to respond to this particular criticism with a comment related to how HANA DB is “more than a database.”

That only starts up another discussion. It may or may not be, but the statement I made is regarding HANA’s performance and value. That statement needs to be answered without diverting into other areas because one can’t respond to the actual question with convincing evidence.

When faced with the inaccuracies from SAP a few SAP consultants moved to a new approach to divert attention from HANA’s false claims. This was to declare that it was not relevant because the database was after all “not that important.” 

SAP’s Official Position the Database

SAP’s official position is that HANA is a massive differentiator. So if SAP says something and it turns out to be false, then that is relevant.

Since HANA’s introduction, it has been a steady drumbeat from SAP as to why the database is critical and why customers need to switch as soon as possible to HANA. ASUG’s position is that as SAP is the strategic vendor, those companies need to migrate to S/4HANA. There is no backing off of the emphasis that SAP has placed on the database since HANA was introduced in 2011.

The Logic for Limiting S/4HANA to HANA

Let us also remember the logic for limiting S/4HANA to HANA — that no other database vendor can keep up with SAP’s innovation. SAP is restricting choice and doing so for purely commercial reasons, all while telling people it is for technical reasons. This entire storyline is false and is provable as false.

SAP’s Credibility Hit Due to HANA’s Claims Being Found to be False

If what is true is important than this is a problem not only for this specific subject but for companies that intend to listen to advice from either SAP or SAP consulting companies on other subjects.

HANA’s Predicted TCO

Second, our research predicts that HANA will have a greater than 2x TCO versus competing databases. Again, SAP stated that HANA’s TCO would be lower — lower even than when HANA replaces an existing database and will implement faster than an already implemented database. The second sentence is impossible, and it should be obvious why. You don’t have to pay this extra TCO, but disrupting the database layer for what turn out to be negative reasons (that is you are worse off as a company after you do it) but the customers do have to deal with this wasteful disruption. This means that SAP has been and will continue to misdirect IT budgets into HANA.

HANA’s Performance Problems with S/4HANA

A final reason to care about HANA even within the context you mention is that HANA has performance problems in supporting ERP as we covered in the article The Mismatch Between HANA and S/4HANA and ERP. 

This fact alone means that S/4HANA’s value proposition is compromised. But once you include S/4HANA’s implementation history, how S/4HANA’s risk is so high, its difficult to find a major application with higher risk right now.

The Issue with the Perceived “Importance” of the DB

We all tend to think that the “important thing” is whatever we happen to work in. I focus more on the application area myself. However, I am personally amazed by what databases can do. Databases are an amazing intellectual achievement. Once you spend time with a database person or developer who takes you through what is possible, they seem like magic. Non-database people tend to think terms of spreadsheet tables with the tables just pointing to each other (as the ERD diagram).

However, that is a vastly oversimplified construct.

Many application people tend to see development as something not to focus attention. They may say “just give me the app.” I used to think that way myself. Better understanding development as I have in the past year or so leads one to question application design rather than accepting what is available. The current applications we have are just what someone thought made sense. They are not necessarily right or the best way to do things, and with development capability, you can make whatever you want, not what someone else thinks is right.

Taking Things for Granted

It is also easy to take things for granted once they have been mastered. Databases run far more smoothly than applications at this point, so it is easy to think that they are not as important.

Its a bit like how often you think about your feet is how directly proportional to how good your shoes are. If you have good shoes, you do not really think about your feet.

Understanding Pivot

It seems like there is a pattern that is established. It goes like this…

  1. The first position is that SAP is 100% correct and this is the future. The early presentations were that SAP had the best database in the world with HANA, and everyone who did not switch to HANA was an idiot. Hasso Plattner had a well-known blog post where he said those who question HANA’s value “just don’t get it.”
  2. When faced with evidence that undermines SAP’s claim, there is a transition to saying that there are some “misunderstandings” about SAP.
  3. When SAP is proven entirely wrong, and or to have deliberately misled people, that the topic area is not important anyway. Then the pivot happens to another topic, and new claims are made that once investigated are also false.

Using this strategy means that SAP is never held accountable for what they say.

Conclusion

Getting quality IT information is a tricky business. There are a lot of overconfident and dishonest people out there who will unthinkingly repeat false information and then defend their positions if questioned. They will try to sell the future. They will pretend they have seen benefits where they haven’t. They will use unproven arguments like a new application that no one has performed a TCO calculation on automatically lowers TCO. They will use ad-hominem attacks. They will rely on concepts that have been long ago disproven (best practices, preconfigured solutions, rapid deployment solutions).

They will even stoop to proposing that the database is not that important anyway.

The one thing they all have in common is never admitting they were wrong.

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References

I cover Gartner in depth in the following book.

The Gartner Book

 

GARTNER-1Gartner and the Magic Quadrant: A Guide for Buyers, Vendors, and Investors

How to Figure Out How to Effectively User Gartner

Whether you are a software buyer, a large or small vendor, or are wondering how Gartner can help you make better investment decisions, this book will give you new insights to Gartner’s research. By studying the methodology behind such popular analytical tools like the Magic Quadrant, you will understand how a vendor earned its rating and whether or not the ratings are justified!

Understanding Gartner, It’s History, and It’s Incentives

Starting with the history of Gartner and how it compares to other IT analyst firms, this book gives a realistic assessment of the value of Gartner research to a company and provides ideas about other resources that could complement Gartner’s analysis. You will also have the tools to level the playing field between large, medium and small vendors when using Gartner’s analysis in selecting software.

Chapters

  • Chapter 1: Introduction
  • Chapter 2: An Overview of Gartner
  • Chapter 3: How Gartner Makes Money
  • Chapter 4: Comparing Gartner to Consumer Reports, the RAND Corporation, and Academic Research
  • Chapter 5: The Magic Quadrant
  • Chapter 6: Other Analytical Products Offered by Gartner
  • Chapter 7: Gartner’s Future and Cloud Computing
  • Chapter 8: Adjusting the Magic Quadrant
  • Chapter 9: Is Gartner Worth the Investment?
  • Chapter 10: Conclusion
  • Appendix a: How to Use Independent Consultants for Software Selection
  • Appendix b: What Does the History of Media Tell Us About This Topic
  • Appendix c: Disclosure Statements and Code of Ethics

Risk Estimation and Calculation

Risk Estimation and Calculation

See our free project risk estimators that are available per application. The provide a method of risk analysis that is not available from other sources.

project_software_risk