How Accurate Was SAP in Keeping S/4HANA Exclusive to HANA?

Executive Summary

  • What SAP said about keeping S/4HANA exclusive to HANA.
  • How our prediction stacked up against SAP.

What SAP Said About Keeping S/4HANA Exclusive to HANA

When SAP introduced S/4HANA, they made the very unusual policy of making S/4HANA and HANA a packaged deal. This meant that S/4HANA could only work on HANA, which pushed out the traditional database vendors like Oracle, IBM, and Microsoft from the S/4HANA database market.

What We Said About S/4HANA’s Exclusivity to HANA

In 2016 we predicted, in the article Why SAP Will Have to Backtrack on S/4 on HANA Database, that SAP would change this policy.

The logic for this prediction was that it would be too costly in terms of lost S/4HANA revenues to continue to hold to the exclusive relationship between S/4HANA and HANA.

In the intervening years, and in response to SAP’s aggressive marketing around column-oriented and “in memory” database benefits (which we covered in the article How Accurate Was SAP on In Memory Computing?) Oracle, IBM and Microsoft all swiftly added column orientated capabilities to their databases. In the article How Accurate with Bloor Research on Oracle In Memory?, we agreed with Bloor Research that columnar data stores for databases that supported ERP systems were more of a marketing gimmick, bringing extra complexity into the environment that would not be leveraged by the ERP system, then actual need. But as Oracle, IBM, and Microsoft followed suit, there was never any reason, outside of the monopolistic lock-in restriction, for SAP to be excluded from supporting S/4HANA. However, as an important side note, it should be observed that both Oracle and Microsoft play the same corrupt game of restricting their applications to their databases.

When Underhanded Monopolistic Vendors Complain About About Other Underhanded Monopolistic Vendors — Without Blushing

While Oracle, IBM, and Microsoft resources screamed like banshees about how SAP had locked them out of supporting S/4HANA, they tended to become very quiet or change the subject when I pointed out that their own employers did the same thing. This led me to create a hypocrisy article specifically for Oracle employees with Teaching Oracle About Hypocrisy with Lock-In. 

What Happened with SAP’s Policy?

SAP could change its policy with HANA and S/4HANA tomorrow. However, after close to four years since our prediction, and over five years after SAP announced its policy, it seems likely now that SAP will not change the policy. In fact, not only did SAP not break the exclusive arrangement between HANA and S/4HANA, they have introduced other HANA locked applications such as C4HANA.

Therefore it is time to debit our long-running accuracy measurement on SAP for our miss on this topic.

Advice on Enjoying the S/4HANA Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP and the IT Analyst and IT Media Scores

SAP receives a 100% accuracy for its projection that it would keep S/4HANA exclusive to HANA.

Brightwork Research & Analysis Score

Our forecast for S/4HANA turned out to be incorrect. Therefore we have allocated a 0% accuracy for this prediction to our long term Study into SAP’s Accuracy.

Ignoring Our Accuracy

However, even with this miss, our combined predictive accuracy on SAP extremely high. SAP resources who have a problem with our research have refused to address this accuracy list which is all supported by dated articles.

Link to the Parent Research Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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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How Accurate Was SAP in Projecting Qualtrics as a Strategic Acquisition?

Executive Summary

  • What SAP said about its acquisition of Qualtrics.
  • What actually happened with the Qualtrics acquisition?

What SAP Said About its Qualtrics Acquisition

SAP made a number of highly optimistic statements about how Qualtrics would become so central to SAP’s business.

The Truth About the Qualtrics?

As we covered in the article Does SAP’s Acquisition of Qualtrics Make Any Sense?, that the acquisition both made no sense as it had little relationship to SAP’s business, and that furthermore, the acquisition price was extortionate. We classified that acquisition as ridiculous and a sign of how illogical SAP’s leadership was.

We published our article on the Qualtrics acquisition in November of 2018. This article reviewing the Qualtrics acquisition was published in May of 2020, which is close to 1.5 years after our production that the Qualtrics acquisition would fail.

At the time, compliant analysts like Josh Bersin stated the following.

The word “experience” has taken over the software market, and for good reason. In today’s digital world, if your experience isn’t good, you just don’t do business with a company. But how do you understand and manage it?

If this was true, it was because SAP made it into a “thing.” The experience economy as a concept has greatly declined in the months after this acquisition. As is typical of analysts, they presume that the executives in these companies know what the are doing. The evidence? Well, the company did it. This is found in the following quotation from Josh Bersin.

It’s clear that SAP sees a lot of opportunities here, and to me, this tells me something about scale.

It’s never easy to tell when an acquisition will pay off. It’s clear that the SuccessFactors acquisition was very successful for SAP, but there are other deals (IBM’s acquisition of Kenexa) that don’t always pan out as well.

That is a different point, but it not really true.

Few SAP ERP customers use SuccessFactors, and even if it were true, it is not a reflection of SAP’s average success ratio with acquisitions, which is quite low, as we cover in great detail in the article How Effective is SAP in its Acquisitions?

Analysts that write on SAP could never be bothered to actually itemize and rank the effectiveness of each acquisition. And as with most analysts, Josh Bersin then simply repeats statements that are made to him by SAP executives without questioning any of them.

The following is a perfect example of this.

If SAP can pull this off, they could build a set of tools that help every company behave like Amazon; deliver real-time feedback to managers about customers, prospects, and employees – in an actionable and useful way. That market is probably 10 times bigger than the “survey” market, and it leverages SAP’s expertise in data management, infrastructure, and enterprise solutions.

Misunderstanding How Amazon Gets Feedback From Customers

Amazon does not do that with survey software. They do that through how they set up their website, and how the customer responds to their website. This is something that SAP has never done and did not know how to do before Qualtrics, and still does not know how to do today (so almost a year and a half after this article was written). The person who writes this does not know how either Amazon works, how it gets customer feedback, and how surveys either have nothing to do with it, or very very little to do with it.

Josh Bersin continues..

It’s a big move and clearly, SAP has a big vision. I’ll be watching this closely and look forward to letting you know how it goes.

That is untrue.

Josh Bersin will only publish what happens if the Qualtrics acquisition happened to be successful, otherwise, as with other analysts, they will never bring up the topic again. That is how the analysts work, they make projections, where they never go back and hold themselves accountable or record their predictive accuracy. I have found this repeatedly in researching analyst writings. Did Gartner go back and measure their accuracy for what they wrote on IBM Watson as we covered in the article How Gartner Got IBM Watson so Wrong? Of course not. IT analysts follow no scientific approach and this means zero measurements of previous projections.

Denis Howlett of Diginomica did barely any analysis in his article, which of course was positive as SAP was a “partner” with Diginomica at the time. In fact, he primarily just used quotes from Josh Bersin, who as I just pointed out, was primarily just using quotes from SAP executives.

Long story short, both Josh Bersin and Denis Howlett both got the prediction wrong.

Bill McDermott was supposedly increadibly charged up to work on the future with Qualtrics CEO Ryan Smith. Except he was not excited for that long, because he left SAP 11 months after Qualtrics was acquired. 

A year and a half after SAP made a big marketing push on “X and O Data” no one is talking about this concept today. 

  • Overall, I never see Qualtrics discussed in SAP projects.
  • Even with many people reaching out to the website, I have no customers or other inquires that reach out even using the term.
  • The Qualtrics acquisition has done very little for SAP.

SAP does not break out its revenue per application, therefore it is not possible to know if Qualtrics’ sales have gone up or down since the acquisition. The only real way to measure Qualtrics success is how often or much Qualtrics is part of SAP projects or discussed or of interest by SAP customers.

Conclusion and Calculation

SAP and the IT Analyst and IT Media Scores

SAP receives a 0% accuracy for its projection that Qualtrics would become a major component of SAP’s strategy. The vast majority of IT analysts also receive a 0% accuracy for the analysts listed in this article simply repeating SAP’s talking points, as does IT media which did the exact same thing (IT media entities typically rely on SAP for advertising revenues and paid placements (ads that look like articles but are actually written by the vendor)).

Brightwork Research & Analysis Score

Our forecast for what would occur with Qualtrics has proven to be correct. Therefore we have allocated a 100% accuracy for this prediction to our long term Study into SAP’s Accuracy.

Ignoring Our Accuracy

SAP resources who have a problem with our research have refused to address this accuracy list which is all supported by dated articles. They also refuse to address SAP’s incredible history of inaccuracy.

Link to the Parent Research Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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References

*https://joshbersin.com/2018/11/why-did-sap-pay-8-billion-to-acquire-qualtrics/

https://diginomica.com/re-evaluating-saps-qualtrics-acquisition-light-medallias-blowout-ipo

How Accurate Was SAP in Saying it is Leonardo that Ensures Frozen Ice Cream Delivery?

Executive Summary

  • What SAP Said about Leonardo Ensuring frozen ice cream delivery.
  • The truth about Leonardo ensuring frozen ice cream delivery?

What SAP Said About Leonardo Ensuring Frozen Ice Cream Delivery

SAP proposed in a video that Leonardo was essential to the delivery of frozen ice cream.

The Truth About Leonardo Ensuring Frozen Ice Cream Delivery?

As we covered in the article Why Leonardo Seems So Fake, Leonardo does not improve the delivery of frozen ice cream. In this article, SAP seems to confuse Leonardo with the transportation and refrigeration equipment that actually keeps the ice cream frozen.

Conclusion and Calculation

SAP receives a 0% accuracy rating for how Leonardo can ensure or improve frozen ice cream delivery.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP in Calling All Non-HANA DB’s Legacy?

Executive Summary

  • What SAP said about all non-HANA DB’s legacy.
  • The truth about all non-HANA DB’s legacy?

What SAP Said About All Non-HANA DB’s Legacy

SAP has repeatedly stated that all non-HANA databases that compete with HANA are legacy.

The Truth About All Non-HANA DB’s Legacy?

As we covered in the article How Accurate is SAP in Calling Non-HANA DBs Legacy?, we explained that the databases that SAP calls legacy are more successful than HANA, and all the evidence indicates that they perform better than HANA. SAP is comingling the fact that these databases preceded HANA with these databases being legacy. All of these databases have massive customer bases and are perpetually kept up to date.

Advice on Enjoying the HANA Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP receives a 0% accuracy rating for all non-HANA DB being legacy.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP on Only SAP HANA Being an ACID Database?

Executive Summary

  • What SAP said about only SAP HANA being an ACID database.
  • The truth about only SAP HANA being an ACID database?

What SAP Said About Only SAP HANA Being an ACID Database

SAP made some strange statements about HANA being the only ACID database. Or that it was the only ACID database with a number of other features. The intent appears to have been to have prospects believe that being ACID compliant is a major differentiator for HANA versus competitors.

The Truth About Only SAP HANA Being an ACID Database?

As we covered in the article How Accurate is SAP on Only HANA Being an ACID Database?, all of the databases that HANA competes with are ACID compliant and have been for decades. This phrasing can only have been created to mislead readers.

Advice on Enjoying the HANA Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP receives a 0% accuracy rating for ACID compliance being some unusual or special feature exclusive to HANA.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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References

https://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP on S/4HANA in the Cloud Being Easily Extended?

Executive Summary

  • What SAP said about S/4HANA in the cloud is easily extended.
  • In this article, we fact check the accuracy of S/4HANA in the cloud is easily extended.

What SAP Said About S/4HANA in the Cloud Being Easily Extended

SAP released a major paper titled SAP S/4HANA Extensibility for Customers and Partners. In this paper, SAP proposed that S/4HANA in the cloud would be “extensible” (and introducing a new word to the SAP lexicon) and made a variety of claims ranging from improved upgradeability to reduced implementation timelines.

The Truth About S/4HANA in the Cloud Being Easily Extended?

As we covered in the article How Accurate is SAP on the Use of the Term Extensible for S/4HANA in the Cloud?, the term extensibility is a synonym for customization. This highly dishonest article by SAP attempts to thoroughly mislead the reader into accepting both a number of false assumptions about the history of SAP (for instance that R/3 became popular because of low cost “extensibility”) as well as incorrect assumptions about the future. In the paper, SAP proposes things that customers will be able to leverage that literally do not exist.

Advice on Enjoying the S/4HANA Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP receives a 0% accuracy rating for S/4HANA in the cloud being easily extended

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was SAP on Parallel Processing Working in SNP?

Executive Summary

  • For years SAP has stated that parallel processing works in SNP.
  • In this article, we review the accuracy of this claim. 

What SAP Said About Parallel Processing Working in SNP

For years SAP included a parallel processing field in the SNP optimizer, giving the impression that one could choose how many processors to address in the optimization.

The Truth About Parallel Processing Working in SNP?

After roughly 5 years using the parallel processing setting in SNP, we decided to test the performance of the optimizer with using one processor versus using multiple processors. What we found was there was no difference in the runtime! We covered this in detail in the article How the Parallel Processing Function for the SNP Cost Optimizer Does not Work.

“This is amazing that SAP has had this setting available on the optimizer profile and that the parallelization functionality has either never worked correctly or at some point stopped working properly back in 2003, at least the OSS notes go back to 2003. Secondly, as I am running into problems with it documented as not working in 2013, this means that SAP has not fixed the problem in a decade. I wonder if parallelization has been removed from SAP’s sales presentations on the SNP optimizer. I can’t say for sure – but I have a feeling SAP salesmen have not been telling potential customers that parallel processing is broken.”

The issue is that parallelization of problems is tricky, so SAP simply gave up…..but they never removed the field, giving SAP configurators and testers the impression that it worked.

Conclusion and Calculation

SAP receives a 0% accuracy rating for parallel processing in SNP working.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was SAP on Shelf Life Planning Working in APO?

Executive Summary

  • For years SAP has stated that shelf life planning works in SNP.
  • In this article, we review the accuracy of this claim. 

What SAP Said About Shelf Life Planning Working in APO

For years SAP proposed that its shelf life functionality in SNP within APO worked perfectly fine. They told many customers during the sales phase that shelf life planning was included in standard SNP.

The Truth About Shelf Life Planning Working in APO?

This story changed for customers after they implemented SNP. We explained this in the following article Shelf Life Planning in SNP Does Not Work and Likely Will Not Work In the Future. 

“SAP admits that shelf life does not work for CTM or heuristics at all. However, it 1/2 proposes that shelf life works “in a limited way” when the optimizer is used if the steps above are followed. When you read the fine print, you find that shelf life only works by “setting penalty costs” and does not stop the material from being used in planning. However, this is a mismatch with the requirements. Expired products cannot be sold in most cases, and actual shelf life functionality would prevent the accumulation or movement of expired product.”

Conclusion and Calculation

SAP receives a 0% accuracy rating for shelf life functionality working in APO.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

 

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References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was SAP on HANA Having a Lower TCO?

Executive Summary

  • For years SAP has stated that HANA has a lower TCO than competing databases.
  • In this article, we review the accuracy of this claim. 

What SAP Said About HANA Having a Lower TCO?

SAP has for some time stated that HANA has a lower TCO than competing databases from Oracle, IBM, and Microsoft. SAP sponsored a study from Forrester that we covered in the article How Accurate was Forrester’s TCO Study for SAP HANA? which SAP has used to promote this concept of HANA having a lower TCO.

The Truth About HANA’s TCO?

As one of the most significant researchers in HANA, a number of factors about HANA made us skeptical of this claim on the part of SAP. First, the Forrester “research” was clearly rigged by Forrester to make SAP happy with their purchases. The details are fully explained in the article above. But the fact that we are the only entity to call out Forrester for this extremely poor quality rigged research is one indicator of how little critical thought or expression there is in the enterprise software market.

We published the first and only independent study on HANA’s TCO in A Study into SAP HANA’s TCO. This study estimated that not only did HANA not lower TCO but that HANA had to have a higher TCO than the competing options in the market.

Advice on Enjoying the HANA Quiz

To see the full screen just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP receives a 0% accuracy rating for HANA lowering TCO.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was SAP on Reengineering Business Processes?

Executive Summary

  • For years SAP has stated that SAP performs reengineering business processes.
  • In this article, we review the accuracy of this claim. 

What SAP Said About How Accurate Was SAP on Reengineering Business Processes?

Business process re-engineering was a very hot topic and consulting line of business back in the 1980s. The concept, which was greatly promoted by SAP, Gartner, and SAP consulting companies (among others) was that the business process could be re-engineered or adjusted to match the functionality in SAP. SAP further proposed that whatever the prospect was doing in its existing systems were inferior to the best practices that were contained within SAP’s software.

The Truth About Reengineering Business Processes?

Reengineering ran out of steam in the early 1990s but as is covered in the article Reengineering and its Impact on ERP Sales,

Over and over SAP told companies to redesign their processes and use SAP’s standard functionality, but it simply was not feasible for the vast majority of functionality. A massive industry built up around coding in the highly inefficient SAP ABAP coding language to place these customer processes into SAP. This was covered in the article Why Did Customers Listen to SAP on ABAP and Coding Tools?

Essentially in the battle between reengineering and customization, customization won.

Conclusion and Calculation

SAP receives a 0% accuracy rating on SAP regarding reengineering to match SAP would lead to significant advantages.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

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.

What We Do and Research Access

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