SAP Unveils Accelerated Cloud Strategy

SAP AG has unveiled its accelerated cloud strategy by announcing cloud solutions for four lines of business to manage people, money, customers and suppliers. These are planned to be offered in a consistent way and seamlessly integrated into enterprise resource planning (ERP) business software. SAP will leverage the market strengths of SuccessFactors, an SAP company and one of the fastest growing cloud providers in the world, and its founder and CEO Lars Dalgaard.

“The cloud is a completely new paradigm. Our team of 5,000 will provide customers and all their people with rock-solid access to best-in-class business functionality for people, money, customers and suppliers,” said Dalgaard, SAP Executive Board member. “They aim for the highest level of reliable security in the cloud. We will provide integration among the cloud solutions and external content out-of-the-box with on-premise business software. We are passionate about bringing creative and innovative first-in-class applications to market with a beautiful user experience.”

Since the close of SAP’s acquisition of SuccessFactors in February 2012, the combined teams immediately joined forces to begin delivering on an accelerated cloud strategy. SuccessFactors is a pioneer in the cloud and belongs to the human capital management (HCM) space, while SAP has deep and unmatched end-to-end business process know-how across on-demand and on-premise solutions. Together, and with Dalgaard at the helm of the combined Cloud business unit, SAP is now investing more than 5,000 people dedicated to designing, building and delivering beautiful cloud solutions that enable people to love work again and perform at their best. The newly formed Cloud business unit, serving more than 17 million users, will be focused on four solution areas aimed at helping customers manage their most business-critical assets and relationships.

SAP plans to deliver its multitenant cloud solutions as a loosely-coupled suite of best-of-breed applications. The company plans to offer customers the choice and flexibility to adopt these applications at their own pace, as their business needs evolve. When used together, these applications aim to offer the value of a single solution with a consistent user and customer experience, process and data integrity. The cloud portfolio will focus on solutions that help SAP customers better manage:

People: SAP announced the addition of its global payroll software as a cloud-based offering integrated with SuccessFactors’ core human resources (HR) solution, Employee Central. The solution is planned to be available in 10 countries, and is today leveraged by a number of strategic partners as a platform to offer business process outsourcing (BPO) services.

Money: With expertise in global localisation of sophisticated financial applications, SAP announced the planned availability of the SAP Financials OnDemand solution, targeted for large enterprise customers to manage their core financials as well as order-to-cash and invoice-to-pay processes. It is planned to be integrated with SuccessFactors’ core HR solution Employee Central.

Customers: The SAP Sales OnDemand solution, with new innovations now released quarterly, goes beyond the capabilities of existing cloud-based sales force automation tools by delivering new marketing and social selling capabilities, new configurability and customisation tools, and new integration to on-premise SAP Business Suite software, including the SAP Customer Relationship Management (SAP CRM) application.

Suppliers: Supplier interaction continues to be a key lever for customers. SAP intends to invest in the SAP Sourcing OnDemand solution for strategic sourcing, supplier and contract lifecycle management integrated on premise with SAP Business Suite, as well as its business networks solutions, including the SAP Information Interchange OnDemand solution, for networked-based invoice management and information exchange for the procure-to-pay process.

Harnessing the power of its mobile, collaborative and analytic expertise for the cloud, SAP cloud solutions can create synergies for customers to realise business value in entirely new ways. A beautiful and intuitive user interface (UI) enables people to easily navigate the system to get their work done more efficiently. With these capabilities powered by the SAP HANA platform, people can make better-informed decisions while integration with the existing portfolio of on-premise solutions from SAP allows for faster innovation across lines of business.

SAP continues to reinforce its social collaboration strategy with new people and data collaboration capabilities: analytics directly in social software for fact-based decision-making, social communities easily blended with formal training for increased learner engagement and an iPad application for collaboration on-the-go.

Across its rich portfolio of mobile cloud solutions, SAP announced the planned availability of SAP NetWeaver Cloud as its unified platform-as-a-service (PaaS) offering. It is intended to be powered by SAP HANA with application design and runtime capabilities, as well as a rich set of services that are planned to include security, mobile and collaboration.

SAP intends to deliver a cloud-based integration technology, comprised of on-demand solutions for process integration and data services, with out-of-the-box content to connect the loosely coupled line-of-business on-demand solutions to other SAP solutions whether on premise or on demand.

SAP will continue to offer fully integrated suites in the cloud, with SAP Business ByDesign for mid-market customers via its reseller channels and for subsidiaries of large enterprise customers, as well as the SAP Business One OnDemand solution served by certified SAP partners for smaller customers.