Not impressed…….

Here’s a statement from Darren Roos of SAP:

“In the past, CIOs were consumed with a facilities management challenge,” said Roos. “They are now focused much more on the business, and on business outcomes. Licensing has become a new distraction for some CIOs who come from a generation where they were still working with a facilities management approach. But I simply don’t believe licensing is an issue. SAP’s licensing is infinitely flexible. And so they can get bent around the axle.”

My concern with this is that it feels a little or maybe more than a little out of touch with the reality of the situation. Let me explain why:

  • If you have ever tried to work your way through SAP licencing you would never, ever say that, just think about the current documents. Currently on premise runs to 86 pages. And cloud requires you to have at least 4 agreements (of varying length) including the order form, the cloud service description (and of course there will likely be more than one), the data processing agreement, and the general terms and conditions. And don’t expect many people in SAP to be able to answer the detailed questions around these…..they do exist but they are truly hard to locate (ask the SAP sales teams themselves about this!).
  • Then you have the transformation to cloud from on premise, how you translate this as most go through a hybrid phase of on premise and cloud together.
  • You also have the harsh reality of cost – and fundamentally as you move forward from hardware, facilities, people and software, you are looking at moving to more people and software through service provision (but some form of facilities even as a service will still exist). And the dilemma is getting this cheaper – so off shoring (or best shoring as it is often referred to today), or clearly demonstrable additional business value (emphasis on the clearly), through the purchase of these services.
  • External service providers have to make a profit, internal do not so cost challenges of moving will exist where the business has already best shored its operations.
  • And if licencing really wasn’t an issue why is there all this noise out there?

The comment about CIO’s that come from a certain generation I find to be certainly not empathetic with the customer (in some countries that might be deemed a discriminative remark) , almost saying they don’t know what they are on about, continuing the global theme that experts shouldn’t be trusted, because that’s what they are, people who have travelled the whole journey through what is an amazing period of time where technology has grown and grown to become almost the “saviour” of business. I say almost because good management is still needed…..

At the end of the day Indirect Licencing continues to be an issue in a more and more connected world…..that’s what the noise is about, and for whatever reason SAP seems to be getting the customer worried about it, based on surveys that have been done, which is a shame as SAP software has always been a trusted solution.

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