SAP's big challenge: proving the business case for Hana

Licensing concerns are a key stumbling block on the way to S/4Hana, a new study found

SAP needs to do a better job of convincing customers that adopting its Hana in-memory computing platform is worth the investment, according to the Americas’ SAP Users’ Group (ASUG).

There is good news for the company: The proportion of customers that have bought Hana is up to 45 per cent this year compared with 40 per cent last year, according to ASUG's second-annual member survey on SAP Hana adoption.

Most Hana users also seem to be satisfied: 90 per cent of the group responding on that point said their most recent Hana implementation met or exceeded expectations.

SAP has essentially bet its future on the five-year-old Hana platform, so numbers like that clearly reflect at least some progress in the right direction.

The companies that haven't yet bought into Hana, however, had plenty to say. First and foremost, nearly 60 per cent said they're still not seeing a compelling business case to justify the investment. That's down from 75 per cent in the 2014 survey, but it remains the top sticking point, according to the report.

An unclear migration path was also a stumbling block for some, as was the need to first catch up on SAP upgrades or enhancement packs. Time and budgetary issues were also on the list.

Licensing issues were a particularly hot concern when it comes to S/4Hana, the Hana-based enterprise suite SAP released earlier this year.

While S/4Hana could accelerate Hana adoption and has already attracted customers' attention for its real-time analytics capabilities, in particular, more than a third of respondents are still in "wait-and-see" mode, according to the report.

"The licensing structure of the unfolding S/4Hana products is currently not well understood," wrote Kevin Reilly, ASUG's S/4Hana community advocate. "No successful CIO can sleep easy at night without knowing all of the ramifications of the cost/benefit calculations around any product."

SAP needs to clarify its licensing structure in order to convince many “wait-and-see” customers to "hop on board the S/4Hana train," he added.

Finally, SAP's Hana Cloud Platform is still struggling to attract interest: Only 14 percent of respondents have tried it out yet, the report found, confirming similar results from DSAG, the German-speaking SAP User Group, a few months ago.

ASUG's survey was conducted in September and October of this year and drew 1253 respondents from a wide range of companies. The full report -- including also a response from Steve Lucas, SAP's president of platform and analytics -- is available as a free download for ASUG members.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags memory computing platformenterprise suiteSAPsoftwareHANAcloud computing

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Katherine Noyes

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?