HANA: It Is Time To Subscribe

Steve Lucas

Posted by Steve Lucas on April 13, 2014

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Last week SAP announced that all our solutions powered by SAP HANA, as well as HANA itself are now available via subscription. I think it’s important to note that not only are HANA and our core business suite software licenses available via subscription, but more importantly they are available in the SAP HANA Enterprise Cloud (i.e. hosted and managed in our data centers).This means that for any company that wants to pay by the month and get the world’s best business application suite running on the fastest data platform on the market, they can!

Put simply – we are making a promise that organizations who choose SAP will get the best cloud based industry solutions at the lowest TCO which business users will absolutely love, and best of all they can buy in whatever manner they prefer!

Our vision for SAP is to become the business cloud company powered by HANA. You can’t do that unless you actually have your core software available via subscription in the cloud…hence the reason for the announcement. What this really means in the long term is that we are all in on the cloud and making it easy to do business with SAP.

More broadly, the announcement continues to drive our “HANA Everywhere” strategy, which simply put is to make HANA a core part of every type of business application available.

Since we first launched HANA in 2011, literally thousands of customers have made the decision to leverage HANA to transform their business from batch oriented to real-time. When we started that journey, we introduced a new “per gigabyte” licensing model that a company would purchase up front (which you still can and should feel free to do so!). The fundamentals of the license are still the same – i.e. per gigabyte, but as a monthly subscription option I believe that we will see an even more dramatic acceleration in the adoption of HANA.

Choice actually matters…

As you may know, we introduced the SAP HANA Enterprise Cloud (HEC) last year, which enables companies to run their SAP software solutions on our cloud infrastructure in SAP’s datacenters. It’s a simple model. We own and operate the infrastructure and provide managed services so our customers don’t have to deal with the expense and commitment involved in buying and installing hardware. This means software purchases remain capex investments, but deployment on SAP’s systems becomes an operating expense, reducing costs for customers dramatically.

This is a transformative move, enabling enterprises to shift their entire investment model from capex to opex, leading to huge savings. While still supporting the “classic” model of licensing software through up front purchases, leveraging our new subscription-based offering opens an incredible array of interesting choices for net-new and existing customers. Enterprises now have more choice from SAP than with any other enterprise software company on the market. SAP HANA is available on premise, in the SAP Cloud, in the Amazon Cloud, in partner clouds, and in virtual environments. In other words, HANA is Everywhere!

A simpler landscape

What I like the most about all this is that the end to end solution is dramatically simplified by offering everything in a neat and simple cloud package. We run SAP HEC securely from SAP’s 16 regional data centers around the world. With more than 15,000 professionals in our service delivery centers, SAP Services will help customers migrate to SAP HANA Enterprise Cloud simply and efficiently. In fact, we are expanding our global presence even more to comply with local restrictions and regulations and make it even easier for our customers, regardless of their location. Of course, all SAP data centers are in-memory centric to dramatically simplify the IT landscape and include high-end servers optimized for enterprise mission-critical workloads.

Consider what really matters to you and your company

I will go back to my earlier statement: “…organizations who choose SAP will get the best cloud based industry solutions at the lowest TCO which business users will absolutely love and best of all they can buy in whatever manner they prefer!”

This is what I believe matters:

1) Will your business users love it and use it? Yes.

2) Will it dramatically simplify your landscape? Yes.

3) Will your organization be more nimble because of this? Yes.

4) Will it fit your preferred financial model? Yes.

5) Will it save you money? Yes.

We’re already helping customers such as McLaren, Schaidt Innovations and Levi Strauss transition their landscapes from on premise to either hybrid or full cloud models without disruption. Many others are moving their business step by step to the cloud. Uni-Select, a North American auto parts distributor will be using SAP HEC to deliver BI content containing specific operational KPIs for warehouse management activities and workflows such as budgeting, planning and consolidation. SAP HEC will allow Uni-Select to significantly accelerate their daily operations reporting along with budgeting, planning, and consolidation processes while reducing risk. This is a key benefit for Uni-Select as they have very limited resources. Overall, the project acceleration and unique capabilities of HANA will provide Uni-Select with a competitive advantage with significant impact to their bottom line.

Stories like this just fuel my passion for SAP HANA whether it’s on premise, in the cloud or both. Let’s see where we can go from here…and our competitors will have to update their powerpoint slides.

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