The preferred position for Microsoft Azure S / 4HANA hosting seems to be coming to an end. SAP, which is recommending pairing its ERP suite with Azure as part of an agreement with Microsoft, will now encourage customers to host S / H Hanna wherever they want.
According to SAP, the companies’ affiliate partnerships will re-focus on customer choices. At the same time, SAP is adding a new way to pay for its software: subscription-based, hosted offer calls. “Get up with SAP, “Will be in the spotlight at its Sapphire Now 2021 customer event in June.
“Underlying infrastructure, Azure is a big partner for Rise, but we have expanded our support to other hyperscaler providers, AWS and Google and AliceCloud,” said Jan Gilgel, president of SAP S / H HHNA.
The partnership with Microsoft will continue, he said, “especially at the application level.”
In January, SAP and Microsoft announced plans to integrate Microsoft Teams with SAP’s ERP, HR, and CRM applications. Customers are sharing their experience of that adjustment at Sapphire Now.
The Apps project began in Member 201 in SAP as a demonstration for partners to move the reference architecture to the cloud, hosting them with Amazon Web Services, Google Cloud Platform, or Microsoft Azure.
In October of that year, however, it became a partnership between SAP and Microsoft, Microsoft agreed to resell Azure as well as components of the SAP Cloud platform, and SAP chose Microsoft Azure as its cloud partner.
The Azure sales portion of that relationship will end on June 0, 2021, said David Robinson, managing director of SAP’s customer success office. Business Insider. That is more than a year before the original consensus.
A partnership imbalance
In practice, SAP’s Azure priority wasn’t all that strong, and it’s helping customers move their app to other clouds, Robinson told Insider.
Others have endured that too. “We, the SAP, are not pushing the agency,” said Lane Riley, practice leader at Upper Edge, advising entrepreneurs on IT sourcing.
Within SAP, executives felt the deal was on the other side.
In its original vision for the Ambress project, SAP hopes that while working more closely with all hyperscalers to move its workload to the cloud, it will have the opportunity to appease other applications and services for its joint clients, according to another former SAP executive. Who worked there at the time.
The executive said, “We want a seat at the table.
The decision to make Microsoft a preferred partner then came as a shock to the executive: “Microsoft was the most competitive we had. They have Dynamics 5 365. “
While SAP sales staff will tell customers that Microsoft is their favorite cloud partner, Microsoft sales staff will try to keep SAP colleagues away from their conversations with customers, the executive said. “There was a battle on this field.”
Another former SAP executive with knowledge of the Ambres agreement said: “SAP withdrew and Microsoft took control of the account.” That, the executive said, gave Microsoft the opportunity to remove the chip in a non-core functionality offered by SAP, such as CARM or HCM.
Rethinking customer control
Microsoft has a big seat at the table with most of its joint venture customers because, in addition to infrastructure-a-services, it also sells their collaborations and desktop software, according to Upper Edge’s Relay.
Riley said SAP’s influence on its customers was lost after the departure of former CEO Bill McDermott, the expulsion of co-CEO Jane Morgan, and the loss of Rob Anslin, chairman of Cloud Business. “McDermott literally had to pick up the phone and the energy to get into the C-suite, it was automatic,” he said. “Nobody told that meeting.”
Rise With SAP launched a membership-based hosting offer that could be presented directly to the CEO, “I think they were trying to restore account control,” Riley said.
In practice, though, the all-in-one enterprise software-a-a-service model spearheaded by Salesforce.com is more likely to appeal to midmarket customers, he added. “At the enterprise level, where they are looking to have a direct relationship with hyperscalers and manage application support internally or through a partner, TCS or an expert, I think SAP is struggling to enter the market at that level.”
Copyright 2021 IDG Communications, Inc.