SAP and IT Outsourcing – Vendor Management Considerations

By |May 7th, 2014|

  A common trend in IT is outsourcing. The allure of smooth sailing, fewer headaches, and lower cost generally capture senior leadership's attention. The sales pitches about all of the success stories are often compelling. However, just like calm (but murky) waters on a mild day hide the rocks under the surface, so do many of the outsourcing vendor claims. With some background understanding (and a lot of due diligence), you can avoid most of those rocks and navigate the waters. However, [...]

SAP & IT Outsourcing – Vendor Management Tactics & Strategies

By |May 7th, 2014|

In an outsourcing arrangement you have one of two approaches: work up front to reduce potential disputes or be prepared to deal with the fallout. The less aggressive you are with your outsourcing management, the more profitable you are to the outsourcing company. Does fallout mean you will be in court? Sometimes yes, but sometimes it means re-negotiating a contract, or worse still, skyrocketing costs which can exceed the original costs. Outsourcing Relationship or Arrangement The sales personne [...]

Will SAP HANA Lead to a Big Data Revolution?

By |December 17th, 2012|

Many people focus on HANA as a competitor to Oracle, and it is. Even if HANA adoption and sales were to completely devastate SAP's biggest competitor (Oracle), that would not be HANA's biggest impact. The HANA product has the potential to disrupt entire industries in the context of Big Data. Unlike Big Data, I have been skeptical about the benefits and use of social media in the enterprise, writing about it in Why Social Media Marketing Success Is Elusive for Business and Social Media Fads and [...]

SAP Third Party – Indirect Usage Licensing Part 2

By |December 3rd, 2012|

For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” This requirement is becoming more commonplace, and some companies are quite aggressive with it. This follow-up to my previous post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here. Over the years, SAP has set itself apart by aggressively pursuing sales while generally maintaining good customer relations. SAP's strategy is a balancing [...]

SAP Third Party – Indirect Usage Licensing Part 1

By |November 26th, 2012|

Many SAP customer license contracts contain either a direct or an indirect reference to SAP’s third party usage licensing requirements. That requirement is referred to as “indirect usage” and carries a hefty potential financial penalty. The basic idea is that if you use any non-SAP system to access SAP data, the user of that external system must acquire an SAP Named User License. I understand SAP's argument that if you use portions of the SAP software (BAPIs, RFCs, Function Modules, etc.), you [...]

Storms Coming on the Salesforce.com Cloud Front

By |November 19th, 2012|

Salesforce.com financial clouds   I recently ran into a post from a pretty well respected investor blog over at “Seeking Alpha.”  The basic takeaway is that the Salesforce.com cloud business is not all it is hyped up to be and that shareholders may be in for a seriously rude awakening [FN1]. -------------------- The way it is described there sounds a LOT like Enron accounting.  They called it a Ponzi Scheme and here is how it works: Employees receive stock options INSTEAD OF cas [...]