Users wait for the fine print regarding SAP Business Suite reboot (19459000)
SAP customers have demanded transparent pricing and commercial arrangements after the relaunch of Business Suite by the business app giant and its extended alliance with Databricks.
SAP announced this week that Business Suite would be relaunched as a set of cloud-based applications “truly modular, composable” under the Business Unleashed strategy. SAP has also launched a managed set analytics products that integrate data from SAP applications, through its agreement with Databricks.
The German-speaking User Group DSAG, which represents SAP customers from Germany, Austria and Switzerland, welcomed the decision to relaunch Business Suite, but demanded transparent discount scales based upon the number of modules a client chooses to purchase.
The SAP name will be familiar to customers and partners who have been using the software for many years. SAP Business Suite 7, which includes the ERP application ECC6, was launched in 2006. The vendor will end mainstream support in 2027 and extended after 2030.
Jan Gilg, Chief Revenue Officer for the Americas spoke to journalists this week. He said: “You may remember that we had an SAP Business Suite in our on-prem era 20 years ago. We are launching SAP Business Suite, a cloud suite that is truly modular and composable. Thomas Henzler is a DSAG board member responsible for sales, production and logistics. He said that customers were not always able to benefit from purchasing everything from SAP. He described this as a major drawback.
This often meant that other manufacturers’ solutions were also purchased through tenders. SAP always required that customers negotiate individual deals, such as for solutions in customer experience or procurement.
“There was a lack of transparency as to what commercial advantage the customer actually gained from purchasing everything from SAP. In addition, purchases from the past were generally not taken into account for discounts in new deals.”
He welcomed SAP’s move to integrate products but said that it should also address the issue of commercial transparency. Henzler stated. SAP Legacy ERP users are wise to ignore the offer of a single leap to cloud computing
Sebastian Westphal is the chief technology officer of DSAG. “The implementation will now depend on which insight apps SAP will offer, when and under what conditions, for example, with what added value, at what cost, and with what requirements. The contractual and operational complexity is not yet foreseeable. We expect that extensive information will be provided and system access will have to be clarified – especially in the event that SAP takes on operational responsibility here.”
This suite will support bidirectional data sharing between SAP Business Data Cloud, and third-party platforms, but only using Databricks’ Delta Lake open table formats “as the initial delivery.”
Other companies, including AWS, Google, Snowflake and Cloudera, who all have broad data and analytical portfolios, prefer the rival table format Iceberg which was created by Netflix. SAP released a statement. (r)
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