What Was John Appleby’s Accuracy on Moving BW to HANA?

Executive Summary

  • John Appleby made many claims around HANA.
  • We review his accuracy in terms of moving BW to HANA

Introduction

On Sept 5, 2012, Mitch and Murray……I mean….Bluefin Solutions published the article Building the Business Case for SAP BW on HANA.

Now with close to five years of hindsight, we will review how accurate the accuracy of this article.

Article Quotations

“Implementing SAP’s NetWeaver BW Data Warehouse on its in-memory platform SAP HANA (otherwise known as BW on HANA) might just be SAP’s fastest growing product line in history, with 150 projects within 3 months of General Availability of the product. One of the elements my team is most involved with right now is building the benefits case and business case for the capital investment. This blog gives an overview of what is required and what the elements are.”

Let us head out to DB-Engines to verify this claim of HANA being or “might be” the fastest growing SAP product line in history.

Does this look like the fastest growing product in SAP’s history? It should be stated that Bill McDermott called HANA the fastest growing product in the history of software — which means that it beat Angry Birds. We covered this claim in the article How Accurate Was SAP on HANA’s Growth?

So not a great way to start off the article. Let us move on.

“As with any business case, we have a set of capital and operational expenditures, which offset or avoid costs, or bring tangible benefits. The biggest difficulty with this as relates to Data Warehouses is that the benefits of faster, better decision making are hard to measure. What we tend to do instead is to create the business case based on savings, and describe the benefits case as coming “for free”. Yes – despite the capital expense, BW on HANA will save almost any business money.”

This has turned out to be fabulously wrong.

Let us look at the cost side of the equation.

At Brightwork, we estimate that HANA has the highest TCO of any of the databases that it competes.

This is covered in A Study of SAP HANA’s TCO. 

  • The license is higher (although lower since they started discounting HANA)
  • The resources are more expensive (they are less common)
  • The HANA database is less stable. It is constantly having patches, new components that must be installed, etc..
  • The consulting projects for HANA are longer due to maturity issues. Our estimate is 1.25 years to take HANA live. This is based on information coming in from projects globally.

Every single item that builds up the TCO is higher with HANA than any other competitive offering.

Now let us look at the benefits side of the equation.

As covered in the article What is the Actual Performance of HANA?, there is no evidence that HANA is faster than competing solutions like Oracle 12c or IBM Blu or even SQL Server — all of which now how column-oriented stores. In fact, the evidence is that HANA is slower than these databases, and it is also far less stable. A database is not only measured based on its performance. Stability is an even more important factor for rating databases.

SAP HANA Licensing

“The great thing about SAP HANA DataCenter Edition pricing is its simplicity. You pay one price per 64GB unit for all use cases including all features, including some that other organisations like IBM and Oracle charge for: compression, tuning, high availability etc. It is important though to understand how many 64Gb units you need for current and future needs – assessing how big your system will be and how much future compression you can hope to get.”

Nice try John, but due to the competitive pressure, SAP increased the price of the databases they OEM or resell to match the higher cost on HANA.

This is covered in the article How HANA is Being Used to Block Out DB Vendors.

These comments by Appleby are utterly false…and wait a minute…

Ding Ding Ding!

We award John Appleby our Golden Pinocchio award for proposing that HANA, the most expensive database that exists, is lower than competing offerings. 

Hardware

“SAP HANA hardware is available from all major vendors in 128GB-1TB single nodes, or clusters of up to 16x 512GB or 1TB nodes. My advice for anyone with a moderate size BW system: only buy 512Gb “medium” nodes and start with 4.”

HANA uses the most expensive hardware setup because it inefficiently requires more of the database into memory, but HANA does less with the same amount of hardware as other database vendors.

Interestingly, Appleby does not even attempt to mislead people here on the cost of HANA hardware.

But, no matter what the customer “starts with” the evidence is now clear that HANA will use a far larger hardware configuration than any competing offering. Due to HANA’s design issues that SAP is still trying to work out, HANA will not be able to address much of that hardware depending upon the database processing that is performed.

Support

“There is a cost to support SAP HANA. You will need to include software, hardware and systems support costs, depending on the period over which you choose to build the business case (I suggest aiming for 3 years with a 1 year ROI).”

Why is that true? HANA has discounted support. So 15% instead of 22%.

If SAP removes support costs on HANA, this is the first we have heard of it. And this is exclusive of the high degree of support that HANA instances require that are not covered by SAP support. Appleby is remiss in mentioning it, because….you guessed it, Bluefin Solutions offers these services.

Implementation

“There will, of course, be a cost to implement SAP HANA, either by migrating your existing BW system or by creating a new one.”

That is a fantastic admission on the part of Appleby. It’s quite educational to read through Appleby’s articles to learn that SAP products have implementation costs. Thank you, John. That might be the only true thing in your article.

HANA will not only have implementation costs, it will have the highest implementation costs of any of the competing database for the reasons already provided.

Future Costs

“Most organisations spend a substantial amount on BI projects, and with BW on HANA they will either spend less (fewer full time employees or consultants) or achieve more for the same, in a shorter elapsed time. Our benchmarking suggests that project build times are 20-30% less with BW on HANA, leading to an overall saving of 10-12% or more for capital projects.”

It’s unclear why anyone would listen to Appleby, who released a continual stream of false information, on any of his benchmarks. Secondly, it is maddening to see a consulting company like Bluefin Solutions that has repeated inaccuracies that are promotional in nature pose as if it is a research entity. Nothing Bluefin Solutions says about HANA can be accepted without verification.

Furthermore, BW has a very poor development productivity. HANA would simplify this, but there are far better data warehouses on the market that would reduce the built times even more than Appleby’s dubious reduction.

The question should arise, that if one wants better report development productivity, why have one of the least productive data warehouses in the BW? Put another way, if report development productivity was a focus, why was BW chosen by the customer in the first place?

This is usually enough to pay for SAP HANA on its own, several times over.

  • Appleby is trying to sell HANA services, he is not a researcher. He will not have any idea if this is true. If a consulting organization that sold Oracle services stated that Oracle has lower costs should you listen to them? Of course not.
  • Appleby is assuming the HANA portion of the implementation is lower maintenance than the database it replaces, but that is incorrect. Due to HANA’s overhead, the maintenance costs on HANA drastically increases according to information from the field.

Performance Optimization

Most organizations have one or more Full-Time Employee (FTE) dedicated to performance tuning of existing solutions. This may be a DBA or BI resource; I have run projects that used 500-1000 man-days for performance tuning of large EDW environments. With BW on HANA this is a thing of the past.

Another pie in the sky projection….with unicorns jumping over rainbows that do not match the information coming back from HANA projects.

HANA has not only performance tuning, but it has maintenance overhead that competing databases do not have. If a company implemented HANA 1 below SPS 9, that company will have to reimplement to get to HANA 2 completely! Get real John Appleby!

Maintenance Problems with HANA

“In addition, SAP HANA is less costly to support than other databases because it requires almost no maintenance. Expect savings here.”

Appleby wrote this article in Sept 2012. Let us bring up the chart again.

According to DB-Engines, HANA had almost no implementations as of Sept 2012.

How would Appleby have any idea what the maintenance of HANA at that time was? Oh, right SAP told him, and he repeated it.

HANA will also have higher maintenance costs than competing offerings. Immature products require higher maintenance.

Hardware and Spinning Disks Taking Up So Much Space

“BW on HANA hardware is cheaper and greener than other EDW platforms. Many other platforms require hundreds of spinning disks which are costly and take up space. With BW on HANA you know exactly how much you need based on the size of your Data Warehouse and you do not need bolt-on accelerators like BWA or Exalytics, taking up more space.”

Here Appleby returns to a topic that he already addressed but left out the costs. It turns out he is going to propose that HANA has a lower hardware cost than competing databases.

This is inaccurate because HANA requires so much memory, and RAM and SSD memory is more expensive than disks.

  • How do hundreds of spinning disks take up space? Has Appleby ever seen how much space 200 hard disks take up?
  • And why does the company need hundreds of spinning disks again? Does Appleby realize how much capacity a spinning disk has?

We are going to help Appleby by going shopping for disks online.

This is an 8 TB disk by Seagate. It costs $459 on Amazon. It does not seem that large. When installed in a server, it’s larger, but a single rack can hold a huge number of spinning disks. 

Appleby should probably keep up to date on the sizes of disks before stating that it takes hundreds of spinning disks and that SAP customers can’t afford the room to place the disks. The statement is wrong in multiple dimensions. It is a laughable conjecture, and therefore….

Ding Ding Ding!

Appleby gets a second Golden Pinocchio award for this statement that spinning disks take up a lot of space. 

Trade-up

If your are a BWA customer then SAP will allow you to trade in that purchase, often to 100% of the original purchase amount. Talk to your SAP account team for more details.

Is this the way a person who is pretending to be independent is supposed to speak? As in..

“Visit a Chevy dealer near you!”

This is the kind of sentence used at the end of a commercial. And let’s remember….

ABC, always be closing. Always — be  — closing. Always ——- be ——— closing!

  • The first place prize at Bluefin Solutions for selling HANA is a Cadillac El Dorado.
  • Second places is a set of steak knives.
  • Do you want to know that third place is? 

Services Rebate

“When you make your first purchase of SAP HANA, you may be eligible for a services rebate of up to 30% of your license price that can be used by a BW on HANA Systems Integrator (including Bluefin!). In some cases you can save money by purchasing more HANA units and getting a bigger rebate. Talk to your SAP account team for more details.”

Once again Appleby really wants the reader to talk to their SAP account team! It almost seems like Appleby is coordinating messaging with SAP. But that can’t be true as Bluefin Solutions there to look after the interests of their customer. They would never sell that out…..right?????

Infrastructure Budget

“Many organizations are set up in such a way that they have budget set aside for infrastructure projects like upgrades. If you have an older Data Warehouse then it may be time to upgrade it and if you combine the upgrade with the migration to SAP HANA then you will save money on the overall program of work.”

And if you trade in your old car, it will reduce the price of your new car.

Appleby should be aware that software vendors normally update their products. So if a data warehouse has been implemented for a while (that is old according to Appleby) there is a good chance it has been upgraded. Therefore it may not actually be “old.”

Just a question……could any of this desire to have companies move to SAP HANA for their new data warehouses have to do with Appleby’s firm offering HANA and or BW consulting services? Is Appleby giving advice or ABCing again?

Third Party Analytics

“How much money does the business spend directly with third parties because they can’t get what they need out of their existing EDW? Chances are with SAP HANA, you will be able to provide what they need and you can cut the cost of third party Analytics suppliers.”

This is another projection that did not work out.

SAP has been promising analytics for a while but has provided very little. HANA is primarily installed under BW. BW has one of the highest TCOs in the analytics space. See our BW TCO Calculator for details. (It is free) And the HANA predictive analytics don’t appear on the SAP accounts that I see.

Look, Appleby does not care about cost reduction. His company, Bluefin Solutions sells HANA consulting services. Let’s get real.

Project Overruns

“Looks back through your last year of BI projects and talk to the project managers. How much over-run was there on those projects and how much was attributable to performance problems? Moving to BW on HANA will allow you to reduce over-runs.”

I see many SAP accounts, and I don’t know of customers that have HANA performance problems with Oracle or DB2. Secondly, simply upgrading to Oracle 12C or DB2 BLU will speed the performance more than pulling out previous versions of these databases and replacing them with HANA.

This is covered in the article What is the Actual Performance of HANA? 

SAP has had years to provide evidence of HANA’s superior performance, and they have provided nothing to support any of their marketing claims.

The Benefits Case

“Hopefully by now you will be able to create a basic cost/saving sheet for BW on HANA – in every example I have seen, it has saved organisations money either in TCA (for new implementations) or TCO (for migrations of existing EDWs). This makes BW a “no brainer” in the eyes of the people I have spoken to, and so we can focus on making the soft benefits case attractive.”

Based on what?

All of the information provided by Appleby up to this point has been false. Much of it ludicrously so. Bluefin Solutions makes its money from implementing SAP and was very focused on getting HANA business at this time. Who would trust a salesperson to provide assumptions to develop a benefits case?

“Performance problems are the single biggest reason why BI projects overrun and are delayed. With BW on HANA you still need to design performant solutions, but you don’t have to worry about large or complex data models.”

That is not at all what we have seen on projects. The number one complaint about BW on Oracle or DB2 is unrelated to the database. It has to do with the productivity issue with the BW.

The most direct and cost-effective way to address this is to replace the BW with a more competitive data warehouse application, not to but BW on HANA.

“Implementing BW on HANA becomes a no-brainer for most organising who try to build a business case in this way. What elements have I missed and what other components are you using to build the business case? Let me know and I will update this article to include them!”

This article has been a no-brainer, in that you would have to lack a brain to believe it. It is chocked full of lies, and with Appleby repeating whatever SAP marketing told him to say.

Conclusion

This article appears to be a competition to see how much Appleby can ingratiate himself to Hasso Plattner. When Hasso sees a nice compliant article like this (and HANA is his baby) he is likely to shower the entity that carries the flag for HANA with benefits. This is another problem in that Appleby is partially writing this article to score points — accuracy is the furthest thing from his mind. All the messaging provided here was coordinated with SAP before Appleby wrote the article. And once you can see what went on in the background it is quite insulting to the reader.

It also drives down to an unsettling pathway with Appleby continually trying to get SAP customers to contact their SAP sales rep.

This article receives a 1 out of 10 for accuracy.

SAP’s Inaccurate Messaging on HANA as Communicated in SAP Videos

Fact-Checking SAP’s HANA Information

This video is filled with extensive falsehoods. We will address them in the sequence they are stated in this video.

SAP Video Accuracy Measurement

SAP's Statement
Accuracy
Brightwork Fact Check
Link to Analysis Article
HANA is a Platform
0%
HANA is not a platform, it is a database.How to Deflect You Were Wrong About HANA
HANA runs more "in-memory" than other databases.
10%
HANA uses a lot of memory, but the entire database is not loaded into memory.How to Understand the In-Memory Myth
S/4HANA Simplifies the Data Model
0%
HANA does not simplify the data model from ECC. There are significant questions as to the benefit of the S/4HANA data model over ECC.Does HANA Have a Simplified Data Model?
Databases that are not HANA are legacy.
0%
There is zero basis for SAP to call all databases that are not HANA legacy.SAP Calling All Non-HANA DBs Legacy.
Aggregates should be removed and replaced with real time recalculation.
0%
Aggregates are very valuable, and all RDBMS have them (including HANA) and they should not be removed or minimized in importance.Is Hasso Plattner Correct on Database Aggregates?
Reducing the number of tables reduces database complexity.
0%
Reducing the number of tables does not necessarily decrease the complexity of a database. The fewer tables in HANA are more complicated than the larger number of tables pre-HANA.Why Pressure SAP to Port S/4HANA to AnyDB?
HANA is 100% columnar tables.
0%
HANA does not run entirely with columnar tables. HANA has many row-oriented tables, as much as 1/3 of the database.Why Pressure SAP to Port S/4HANA to AnyDB?
S/4HANA eliminates reconciliation.
0%
S/4HANA does not eliminate reconciliation or reduce the time to perform reconciliation to any significant degree.Does HANA Have a Simplified Data Model and Faster Reconciliation?
HANA outperforms all other databases.
0%
Our research shows that not only can competing databases do more than HANA, but they are also a better fit for ERP systems.How to Understand the Mismatch Between HANA and S/4HANA and ECC.

The Problem: A Lack of Fact-Checking of HANA

There are two fundamental problems around HANA. The first is the exaggeration of HANA, which means that companies that purchased HANA end up getting far less than they were promised. The second is that the SAP consulting companies simply repeat whatever SAP says. This means that on virtually all accounts there is no independent entity that can contradict statements by SAP.

Being Part of the Solution: What to Do About HANA

We can provide feedback from multiple HANA accounts that provide realistic information around HANA — and this reduces the dependence on biased entities like SAP and all of the large SAP consulting firms that parrot what SAP says. We offer fact-checking services that are entirely research-based and that can stop inaccurate information dead in its tracks. SAP and the consulting firms rely on providing information without any fact-checking entity to contradict the information they provide. This is how companies end up paying for a database which is exorbitantly priced, exorbitantly expensive to implement and exorbitantly expensive to maintain. When SAP or their consulting firm are asked to explain these discrepancies, we have found that they further lie to the customer/client and often turn the issue around on the account, as we covered in the article How SAP Will Gaslight You When Their Software Does Not Work as Promised.

If you need independent advice and fact-checking that is outside of the SAP and SAP consulting system, reach out to us with the form below or with the messenger to the bottom right of the page.

The major problem with companies that bought HANA is that they made the investment without seeking any entity independent of SAP. SAP does not pay Gartner and Forrester the amount of money that they do so these entities can be independent as we covered in the article How Accurate Was The Forrester HANA TCO Study?

If you need independent advice and fact-checking that is outside of the SAP and SAP consulting system, reach out to us with the form below or with the messenger to the bottom right of the page.

Inaccurate Messaging on HANA as Communicated in SAP Consulting Firm Videos

For those interested in the accuracy level of information communicated by consulting firms on HANA, see our analysis of the following video by IBM. SAP consulting firms are unreliable sources of information about SAP and primarily serve to simply repeat what SAP says, without any concern for accuracy. The lying in this video is brazen and shows that as a matter of normal course, the consulting firms are happy to provide false information around SAP.

SAP Video Accuracy Measurement

SAP's Statement
Accuracy
Brightwork Fact Check
Link to Analysis Article
HANA runs more "in-memory" than other databases.
10%
HANA uses a lot of memory, but the entire database is not loaded into memory.How to Understand the In-Memory Myth
HANA is orders of magnitude faster than other databases.
0%
Our research shows that not only can competing databases do more than HANA, but they are also a better fit for ERP systems.How to Understand the Mismatch Between HANA and S/4HANA and ECC.
HANA runs faster because it does not use disks like other databases.
0%
Other databases also use SSDs in addition to disk.Why Did SAP Pivot the Explanation of HANA In Memory?
HANA holds "business data" and "UX data" and "mobile data" and "machine learning data" and "IoT data."
0%
HANA is not a unifying database. HANA is only a database that supports a particular application, it is not for supporting data lakes.
SRM and CRM are part of S/4HANA.
0%
SRM and CRM are not part of S/4HANA. They are separate and separately sold applications. SAP C/4HANA is not yet ready for sale. How Accurate Was Bluefin Solutions on C-4HANA?
Netweaver is critical as a platform and is related to HANA.
0%
Netweaver is not relevant for this discussion. Secondly Netweaver is not an efficient environment from which to develop.
HANA works with Business Objects
10%
It is very rare to even hear about HANA and Business Objects. There are few Buisness Objects implementations that use HANA.SAP Business Objects Rating
Leonardo is an important application on SAP accounts.
0%
Leonardo is dead, therefore its discussion here is both misleading and irrelevant.Our 2019 Observation: SAP Leonardo is Dead
IBM Watson is an important application on SAP accounts.
0%
Watson is dead, therefore its discussion here is both misleading and irrelevant.How IBM is Distracting from the Watson Failure to Sell More AI and Machine Learning
Digital Boardroom is an important application on SAP accounts.
0%
SAP Digital Boardroom is another SAP item that has never been implemented many places.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

Search Our Other John Appleby Fact Checking Content

References

https://www.bluefinsolutions.com/insights/john-appleby/september-2012/building-the-business-case-for-sap-bw-on-hana

How John Appleby Was So Wrong About His HANA Predictions

Executive Summary

  • John Appleby, with a sales quota for SAP services under Bluefin Solutions, provided an enormous amount of false information about HANA.
  • John Appleby served as source of false information on HANA.

Introduction to John Appleby’s Prediction on HANA

For reasons that I do not know, John Appleby of Bluefin Solutions made an agreement with SAP and became one of the major proponents of HANA. As well as a major source of false information about HANA. And also a source of false information about competing databases like Oracle and DB2 that the deliberately misrepresented. John Appleby did this far more than any other representative from other SAP consulting companies. We will review the accuracy of John’s article titled 2013, the Year of the Database.

The Quotations

John Appleby begins his article with the following quotation.

“We’ve heard a lot about the SAP HANA database platform over the last 18 months since its release, and whilst we are in the quiet period between end of year and SAP releasing earnings reports in mid-January, the investors I talk to are talking about bookings between €350m and €400m for the year (as compared to €160m in the first full year, 2011), which probably makes SAP HANA the fastest growing database of all time, if not the fastest growing enterprise software product – ever.”

I don’t analyze financial statements, so I am not going to comment on the numbers. Secondly, SAP has a habit of exaggerating the financial performance and misstating the sales of a product early in its life cycle. What I focus on is actual implementation. On projects, even four years after this article was written HANA is still primarily used with BW.

The Focus on the Implementations

What I focus on is actual implementation. On projects, even four years after this article was written HANA is still primarily used with BW. It does not seem to be growing fast. It would be impossible for it to be the “fastest growing enterprise software product – ever.” The fastest growing overall vendor or provider ever I believe is Amazon AWS, something I cover in the following article. The 23 Largest Software Vendors in the World. Therefore one of their primary products would be a good candidate for the fastest growing product ever. Another candidate would be SAP’s R/3 system. But that growth was in the 1980s and 1990s. SAP is not growing very rapidly, so it would be unusual if it presently had the fastest growing application of all time currently.

Appleby’s Ridiculous Prediction About HANA’s Growth

“But despite all this, SAP HANA still has relatively small market share. That’s not to knock HANA, she’s still a youngster compared to Oracle, which is now 34 years old. Oracle claims on its (albeit hyped) company fact-sheet that it has a massive 308,000 database customers. And SAP is now the #4 database vendor, behind Oracle (49%), IBM (20%) and Microsoft (17%) – numbers as per Gartner in 2011. I believe that this is going to start changing in 2013 – here’s why:”

Product Availability

First, we now have awesome Database & Technology platform availability across the existing portfolio:

  • – All SAP products now run on Sybase ASE – including ERP, CRM, BW, Solution Manager and the BI4 suite.
  • – All the Analytics Products – BI4 suite, Visual Intelligence, Predictive Analysis run on Sybase IQ and SAP HANA
  • – Some SAP products (SAP BW, SAP CRM and soon – SAP ERP) run on SAP HANA
  • – [Edit, 13 Jan 2013] Business Suite on HANA – ERP, CRM, PLM, EAM has now been released!

Why is HANA an awesome database and technology platform?

Just Copying Things from Oracle or Other DBs?

All of these things mentioned above ran on Oracle’s database at the time of this article’s publication. My research has concluded that there is no reason to migrate to HANA and that HANA compares poorly to Oracle 12c as I cover in this article HANA Versus Oracle 12c.

“This means that if you want to, you can run all of your SAP apps on a SAP database. I don’t believe there is a current software revision that requires a non-SAP database. What’s on my wish-list for 2013?”

Who cares, and why would you want to? After the Brightwork research into HANA versus Oracle 12c, where 12c added column oriented capability to its database (in response to HANA) what is the need to move to HANA? John Appleby is relying on some assumptions that have proven to be untrue. I cover this topic in depth in the article When Articles Exaggerate HANA’s Benefits.

Pricing and Bundles

We will see what the pricing fairies have to offer when 2013 pricing is released but I’m confident SAP is going to ensure that customers can take advantage of this availability if they want to! We have some of these already:

  • – Aggressive price for SAP HANA scenarios: runtime licenses are 25% of an Enterprise license, and BW on HANA is priced at 37%.
  • – Impressive Analytics bundles for new BI customers, at 20% in addition to your BI Suite license cost, including SAP Data Integrator and Sybase IQ.
  • – [Edit, 13 Jan 2013] Business Suite on HANA has been released and is priced by % application value! Awesome!
  • – [Edit, 13 Jan 2013] Business Suite on HANA customers can do partial migrations and get Sybase ASE included for the rest of the portfolio.

HANA’s Cost

HANA is the most expensive database you can buy. We now know that HANA is priced per GB and that it is quite expensive per GB. We also know that SAP has exaggerated the compression claims, so the size of the database will be larger than whatever SAP estimates. This topic is covered in the article How to Deflect You Were Wrong About HANA. 

Also, I don’t know what is going on with all of these exclamation points, but I am beginning to feel like I am reading marketing material. What is this sentence?

“Impressive Analytics bundles for new BI customers, at 20% in addition to your BI Suite license cost….”

Is that just taken from the SAP marketing or sales literature? Again what is with all the exclamation points? I don’t know anyone who is serious who writes like this.

What’s on my pricing wish-list for 2013? Lots of things!

  • – Database & Technology bundles for all a customer’s needs, e.g., ERP on HANA customers get Sybase ASE for the rest of the portfolio included. If SAP are clever, they will make these bundles easy to understand and buy. If they are really clever, they will make it the same price as Oracle!
  • – Enterprise License Agreements (ELAs) that are subscription-based for the whole D&T portfolio as a percentage of license price.
  • – Enterprise License Agreements for a fixed amount for unlimited usage in large customers.
  • – Improved mechanisms for resellers

What This Means

All of this should mean that if customers want to buy SAP Database, they will be able to do so in a flexible and beneficial way that allows them to get off the 11% that they currently pay SAP for Oracle licenses.

The last part of this paragraph makes no sense. HANA is sold per GB, while Oracle is unlimited. The pricing is not at all equivalent, but HANA is quite a bit more expensive than Oracle. John Appleby would not have any idea what the pricing would be comparatively. And once again, this sounds like SAP sales information. The open question is why John Appleby sounds like an SAP account executive.

“New Features & Functions

2012 was a pretty amazing year of features and functions for SAP Databases, including:

  • – SAP HANA SP04 and SP05 which introduced High Availability, proper Backup & Recovery, transactional system support and Disaster Tolerance.
  • – SAP HANA XS Application Services and Portal with improved developer tools.
  • – SAP HANA Predictive Analytics Library for in-memory predictives.
  • – Sybase ASE 15.7 with a plethora of new features including compression and performance for SAP applications.
  • – Sybase IQ 15.4 with more features including improved compression.
  • – Improvements in portfolio TCO with Solution Manager
  • I hear there is a small army of developers working on this in 2013 and I’ve got a big wish-list here too!
  • – Aggressive new PAL functions to allow more complex modeling in SAP Predictive Analysis
  • – 3rd party tool certification including Informatica, SPSS, Cognos etc.
  • – Data Aging between SAP HANA and Sybase IQ to allow petabyte stores at a lower price point
  • – Single SAP Database Studio to monitor all products
  • – Increased SAP HANA maturity with support for larger systems and better transactional performance
  • – Integration of Sybase ASE, SAP HANA, Sybase IQ and Hadoop into a single RDBMS portfolio with clear delineation
  • – Better roadmaps – todays are just marketechture (login required).”

If I’m being honest, I doubt there is anything on this list that isn’t already on the product backlog and the rate at which these guys are producing software is pretty amazing, so I expect to see this all next year!

A Huge Number of Items

These are a lot of items. But the assumption throughout is that these are successful additions. But just because SAP is working on something or releasing something does not speak to its quality. For example, Hadoop is mentioned in this list. However, I can’t think of any reason one would want to connect HANA to Hadoop. And in fact, SAP is very limited in the market for unstructured data.

SAP wants to be associated with Hadoop because of Hadoop’s success and credibility in the space, but it simply is not there even now, and this is after four years as passed.

“Marketing and Awareness

The SAP marketing peeps had a lot to get on with to explain the Sybase acquisition, new SAP HANA product, availability of SAP HANA for BW and overall database portfolio in 2012. Now in 2013, there’s a lot to get on with!”

  • – SAP ERP on HANA will be announced soon, and getting messaging by industry and by use case is incredibly important. What does it mean to customers’ businesses and where is the value?
  • – Increasing awareness of how SAP HANA is a mission-critical database now with all the usual features/functions like HA, DR etc.
  • – A lot of people don’t know the information in this blog, like how Sybase ASE runs all of the SAP portfolio including SRM, SCM etc.
  • – Focusing on developer awareness and user groups to get new developers on the SAP/Sybase portfolio.
  • – Focusing on my wish-list below too!
  • – Creating a really clear brand for not just HANA but also Database as a whole and making SAP a better choice than Oracle for customers.
  • Lots to get on with here then!

The explanations points seem like a strange flourish to apply. It brings up the question of how technical John Appleby actually is.

Sybase as an Acquisition

Sybase as an acquisition has not been anything close to what was advertised. Sybase’s vaunted mobility offerings turned out to be completely overrated and have really made no impact on SAP’s mobility capabilities. SAP has also had problems doing much with Sybase’s databases, and the revenues for Sybase’s databases are on the decline.

As John points out, getting the messaging is important, but something he leaves out is that getting accurate messaging is more important. John Appleby provided highly inaccurate information on S/4HANA as well as HANA. So he was part of the HANA bubble that took advantage of the product being new to misinform.

How does John Appleby know that HANA is a better choice than Oracle (or other database vendors for that matter?).

The reason I ask is that it is now obvious that it isn’t. Painfully obvious in fact. So why was John Appleby so misinformed at this point in time? Did he simply accept everything SAP said? Did that combine with his sales quote to make him want to believe it?

Appleby’s Enormous SAP Bias

“Making the Technology Easy to Adopt

When I discuss this topic, people are often dismissive because Oracle, IBM and Microsoft have such a stranglehold on DBAs and CIOs. In order to get mass-market adoption, SAP needs to make the technology easy to adopt. They’ve done some of this already:

  • – Free developer licensing for SAP HANA, Sybase IQ and Sybase ASE with click-through licenses.
  • – Free Hasso Plattner Institute learning courses.
  • – The SAP HANA Academy – free E-Learning for SAP HANA. I was involved in this early on, and I think it’s an amazing project that SAP have done a great job with.
  • – Migration tools for ASE and HANA. Some of these exist already, and I believe SAP are also working on an Upgrade/Unicode Conversion/Migration tool that does everything in one step – this will be a major step forward.
  • – Synchronized Maintenance Schedules. One of the major cost contributors for Enterprise Software is the decoupled maintenance schedule of Database and Application. With Sybase ASE, SAP HANA and SAP Business Suite, you can update the Database and Application at the same time, saving the cost of doing testing and change management twice.
  • It’s clear to me that SAP need to do even more in this space because adoption is by far the biggest hurdle. Here’s my wish-list for 2013:
  • – SAP HANA Developer downloads. Gary Elliott from my team makes a great case for this. SAP need to make HANA a 64-bit Windows 7 download for developers. It exists internally. Release it please!
  • – SAP HANA Developer systems. SAP needs to team up with an OEM like my SAP HANA Mac Mini that can be purchased pre-installed. Developers like real hardware.
  • – More migration tools and agile delivery plans. Let’s push the Systems Integrators to make it easy!
  • – Automated parameters for Sybase ASE – more work can be done here to configure this database automatically to reduce TCO.
  • – Take the HANA Academy to all D&T products including Sybase ASE and IQ.
  • – Create SAP Database & Technology TCO tools to help CIOs understand the cost reductions possible.”

Why Appleby Continually References Back to HANA

I think there is a lot to that. Oracle, IBM and Microsoft do have too much control over the database market.

Yet, the real opportunities to look at new databases are things like ProgressSQL, Hadoop, NoSQL. It is open source databases that offer a far better investment if one is looking to check out new offerings. There are many things that Oracle does, that is some applications that you don’t really need 12c. However, IT departments are also sensitive to how many different skills they have to staff.

“Final Words

SAP has already done an amazing job of building a database business from almost nothing in 2010, to $750m in 2011 and $1.1bn in 2012.”

Really?

Or was this partially purchased from the Sybase acquisition? Does John include the acquisitions that form the basis of HANA that SAP has been so quiet about as we covered in the article Did Hasso Plattner and His Ph.D. Students Invent HANA?. Is, is an amazing job of building a database business if you simply acquire most of it?

Appleby as SAP Mouthpiece

Is John Appleby posing here for SAP?

“Curiously, Sybase 2010 revenues were a total of $1.2bn, of which $880m were said to be database-related. Did they decrease in 2011 or are the numbers just counted differently?”

Here John is asking a question he does not want the answer to.

To really punch its weight in this business (and meet its ambitions of being the #2 database vendor by 2015), it needs to grow 300% to a whopping $4bn from the 2011 number. To do this is really has to fire on all cylinders:

  • – Increase the overall capital database market with innovative products that add value.
  • – Eat market share not just from Microsoft and the smaller vendors, but also from Oracle, IBM and Teradata. The 2012 statistics will be fascinating to see, when they are available.
  • – Capitalise on the SAP install base to grab land from Oracle, IBM and Teradata.
  • – Sell into the non-SAP analytics market with HANA and Sybase IQ bundles
  • – Build the cloud application and HANA application portfolios

Asking the Question

I feel like someone has to ask this question. Isn’t capitalize on the SAP install base to grab land from Oracle, IBM and Teradata anti-competitive? If capitalizing on the SAP install base to get companies to purchase database software they would not ordinarily purchase, it sounds like it is. Why does John Appleby want one monopolist to overtake other monopolists? Let me venture to say that this is because John Appleby leads a consulting company that makes more money if SAP does this. So how objective would we consider John Appleby to be. Should companies be following John’s advice?

“But to my mind – one thing is for sure: if SAP plays its cards right this year, 2013 will be a pivotal year for SAP Databases and they could break the $2bn barrier for license revenue. I’m looking forward to my small part in it.”

No, this prediction was wrong. Four years later none of these predictions made by Appleby have come to pass. Why were his predictions so off? Well, I cover in the article on The Effect of Forecast Bias. I a person is paid to think and forecasting one way, they tend to forecast way. This is what happened to John Appleby. Another issue is the bias of his source. John Appleby’s source is almost entirely SAP in this article. And SAP is an unreliable source of information on new products.

Conclusion

This article was not so much written by John Appleby as it was simply John Appleby compliantly copying and pasting what SAP told him. SAP needed to release false information about HANA, but they needed to use a surrogate. For whatever reason, they chose John Appleby. Either that or John Appleby lobbied for the role and put Bluefin Solutions reputation on the line. But fortunately for Bluefin Solutions, almost no one checks on people’s track records. This allows people to issue inaccurate forecasts again and again. If you get on board with SAP, what will often happen is that SAP will give you business.

If you get on board with SAP, what will often happen is that SAP will give you business.

SAP wants customers to be tricked into HANA by any means necessary. Once they do this, they further cut off their customers options and can redirect them to more SAP database products.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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References

https://blogs.sap.com/2013/01/02/2013-the-year-of-the-sap-database/