SAP goes database happy: Can it dent Oracle?

| April 21, 2012 | 0 Comments

SAP plans to agitate its applications to its own Sybase-powered database platform and mingle in a heavy dose of HANA in-reminiscence technology. The game plan: Push diffuse-time database partner Oracle out of the road and take a bigger chunk of the effort IT spending pie.

Here’s SAP’s master project in a nutshell:

Integrate SAP apps to exist optimized with Sybase;

Use HANA veritable-time analytics for hot data;

In April, SAP Business Suite forward Sybase will be available;

Deliver “of the highest total cost of ownership”;

And build an ecosystem—$155 million for a HANA-kind-hearted venture fund and $337 million to attract customers to leave Oracle and IBM in favor of SAP Sybase databases.

It’s unclear in what condition this adventure will turn out, if it be not that SAP has some cojones. SAP doesn’t appear to be to mind that it’ll alienate two long-time partners in Oracle and IBM. To subsist fair, those two compete with SAP attached applications and business intelligence too. But SAP has the applications, Oracle has the databases and IBM installs everything. There’s a assign of history there.

Related: SAP database and fickleness strategies: genius or madness? | SAP reveals database, mobile roadmaps through 2015 | SAP acquires Syclo; continues cause mobility push

So what’s going adhering here? This effort is more than straightforward poking Oracle in the eye. SAP wants to manage its own destiny a bit greater quantity.

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Constellation Research analyst Ray Wang said:

This decision remarkable SAP’s first step at pique back revenues from long-term database partners and emerging co-opetitors of that kind as IBM, Microsoft and Oracle. Why? In dense mass computing models, users don’t care nor make inquiry what database the applications run attached. They buy SLA’s that be required to be met by the software publisher. Will users care that a unused database is in use? This power of determination be SAP’s short-term defiance. In the long term, SAP command compete head on with its biggest database partners. Despite the be inconsistent, database independence will result in greater income capture for SAP and flexibility in setting its denoting futurity direction.

The big question here is whether SAP is up to the Oracle-killing burden. Dennis Howlett and Jon Reed distinguished in a blog post that SAP has to solemnly grow HANA revenue to compete through Oracle. In addition, Microsoft and its SQL Azure platform may be a bigger threat to both Oracle and SAP. Howlett and Reed before-mentioned that they haven’t found a single one customers planning a massive migration to SAP Sybase databases in the nearest three years. They add:

Technically, it is not a blustering deal to move the underlying database in an SAP landscape. That’s not the cape. The question comes in the length to which a move from some other database will yield significant ROI/TCO in similar to risk free a manner as practicable. Equally, companies have spent many years structure stable financials/HR landscapes. They be seized of the functionality needed and much else will be tweaking and bug fixing. Why would you ruffle that and for what gain?

Peter Goldmacher, some analyst at Cowen & Co., also recently questioned HANA’s girth and its menace to Oracle.

In order for HANA to subsist relevant, SAP has to execute flawlessly forward two fronts: (1) Make both greater inroads on new deals and replacements adverse to RDBMS and data warehousing titans like Oracle, IBM and Teradata and (2) Compete effectively in equalization of substantially lower priced Analytics technology from recently made known comers like Greenplum, Vertica and a well host of extremely well-funded institute ups. Unless SAP can accomplish as well-as; not only-but also; not only-but; not alone-but of these two very challenging goals, we be persuaded HANA’s destiny is little to a greater degree than a footnote in SAP’s financials.
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