It was among my preferred occasions of the year recently– the yearly conference for the members of the UK and Ireland SAP user’s group, UKISUG Link 2023, in the ICC in Birmingham.
As is traditional, Paul Cooper, UKISUG Chairman kicking things off with the outcomes of a member study highlighting existing issues:
… Take the concern of indirect licensing [â¦] after a rough trip, we, in addition to the other worldwide user groups, handled to get SAP to acknowledge that the consumers required a more transparent and fairer technique to licensing.
The point is that the roadway has actually constantly been rough. However when we work constructively together, obstacles can be fixed. Today we’re at a point where we are dealing with a breakdown in trust. On facility and hosted consumers are dissatisfied, to put it slightly. With the declaration from Christian Klein mentioning that SAP would just be launching brand-new developments into the cloud.
This isn’t a little minority of consumers. When this was revealed, we chose to survey our members. Initially, before we signed up with and discussed the argument, research study we have actually performed among our members, reveals 79% of you that have actually transferred to S/4HANA are an on-premise or hosted release. Which of those that are preparing to relocate to S/4HANA, 70% strategy to relocate to on-premise or hosted variations.
Back in 2020, SAP board member Thomas Saueressig, discussed providing consumers option in between cloud and on-premise implementations. We were informed that SAP thought in a hybrid future. Yet Mr. Saueressig didn’t as soon as state that cloud implementations featured complete development while other tastes of S/4HANA didn’t. We were likewise informed that S/4HANA would be supported up until 2040. There was no cautions that significant development might just be provided to public and personal cloud consumers, utilizing increase with SAP or GROW. Why did SAP not inform us that brand-new developments just going to be offered to cloud consumers? Did they not believe it was necessary in our decision-making procedure? These are the concerns our members have actually been asking us.
I have actually heard the more negative among you recommend that SAP didn’t reveal this technique before since consumers selecting to remain on-premise may not have actually made the S/4HANA relocation at all. Likewise there are members that SAP itself have actually informed to stay on-premise. Why? Since the size, intricacy and urgency of their SAP applications were considered too hard and dangerous to relocate to the cloud. Will they be exempt from this future SAP developments? If so, undoubtedly there ought to have been informed when they were at first buying their relocate to S/4HANA.
The bottom line is consumers that have actually transferred to on-premise or hosted applications of S/4HANA feel misguided. From a UKISUG point of view, this is a considerable portion of our subscription. If SAP declines to interact more on this matter, there is a genuine threat a lot of those preparing to move to S/4HANA might alter their strategies. Of those who have actually currently moved to an innovation-less future, will they pick to purchase other SAP platforms. I have actually currently heard a variety of on-premise and hosted consumers recommend they anticipate massive decreases in assistance upkeep expenses as they are now running an inferior variation of S/4HANA. I can see that point. Undoubtedly a less future abundant item expenses less to support than preserve. Others are asking if SAP means to reimburse or partially reimburse them, is they are not supplying the services or product they were outlined.
We have actually raised these problems with SAP and today they have actually stayed openly quiet and for those of you at SAP listening today, I advise you to engage and work towards a service that reconstructs trust and resolve the issues of our subscription, most of whom, as we stated in the past previously, have actually on-premise or hosted implementations. Deal with us to construct bridges and allow on-premise consumers to gain access to development.
In personal, some SAP executives have actually informed specific on-premise members that there’s no technical reason that they could not access most of developments through BTP. If this holds true, then inform us if it isn’t please stop miscommunicating. As consumers, what we desire is open and transparent relationships with our suppliers like SAP, where we can feel valued and we can rely on SAP.
This isn’t something that can be dealt with by the regional group in the UK island where our partnership is very strong. Rather, it needs action from those at the top of SAP. Instead of selecting to please financiers over consumers, think of pleasing your consumers, as without them, your financiers will quickly vanish.
At the Germans user group conference in September, SAP’s CEO stated no consumer would be left. Ideally in coming months we can collaborate to make this a truth and make sure that all consumers and our members have access to development and aren’t punished for buying an on-premise or hybrid variation of S/4HANA.
Before I end up today, I wish to want Conor Riordan, who will take over from me as Chairman next year, the absolute best of luck as he steps up to Chair. It’s been an outright satisfaction to work as Chair of your user group for the last 6 years. We have actually continued to thrive and develop.
SAP UK Handling Director Ryan Poggi was next on phase to react to the remarks. He stressed joint SAP and consumer success, and the value of openness:
The current developments are what keep us– and you, since I strongly think that we live [in the same environment] competitive– in an exceptionally difficult environment. And what we have actually heard regularly is that you anticipate us, as a partner, to be one action ahead. And to challenge the status quo when our company believe that collectively we’re not optimizing our capacity.
Modification is never ever simple and we deal with the very same obstacles as everybody. How do we direct a limited variety of resources to offer the most worth to our consumers and make sure that we preserve our location at the leading edge of a market we assisted develop?– which is what you truly get out of us. How do you bring the current innovation, for instance, generative AI, to you in environments where they include the most worth, a lot of which need the cloud? And lastly, how do we make sure that inflation, which in the in 2015 has been as high as 9% and effects all of us, does not develop an environment that interferes with our capability to provide?
And the truth is, like it is for a lot of you, this needs some hard financial investment choices. However this will never ever alter our dedication to supporting all UKI consumers at any phase of your change, which is something our board has actually likewise dedicated to. However I likewise keep in mind that no matter just how much time we commit to this subject on this phase, there will still be concerns.
So my dedication to you and my ask of you is that we continue to have these transparent discussions with our groups and motivate a connection to the ideal stakeholders on both sides. Our door is constantly open. And as I talked about with Paul when we initially satisfied, or satisfied rather, at the podcast, I actually do think that the basis for a real collaboration is that open, transparent conversation. And part and parcel of that is what I describe as comprehending the why.
That does not suggest that comprehending why we decide we make, or you decide you make, will resolve whatever. However it will, I think, assist develop that structure of trust. Now, after what’s simply been stated, this might appear a little tone deaf, however I make certain none of you are shocked to see increase here or around.
I understand that for a lot of you it has seemed like all you’ve heard us state is “increase is the response, what’s the concern?”. However let me take a minute to discuss the context of why we introduced increase. And to everybody thinking, well, to offer more S/4HANA Cloud, offer me a minute. Increase was really born straight in action to consumer feedback. You showed us that it was too hard to deal with SAP, that it seemed like SAP was just concentrated on selling items. You were truly requiring more from us. The marketplace was likewise extremely clear.
If we wish to be the cloud business, we require to be a proactive partner and move from a service and project-delivery focus to being responsible for the functional shipment and result. Increase was born from that feedback, to end up being the proactive partner that you were requiring, bringing the very best of our environment together, while still providing you versatility of option in regards to hyperscaler or companies, all while guaranteeing SAP stays responsible for the result.
INCREASE isn’t just about S4, it’s a cloud operating design that leverages the power of our environment for you. And this year, we have actually seen that the understanding of increase throughout the UKI has actually advanced substantially, thanks to the aid of our joint workshops and this online forum, the user group. We’ll hear a bit later straight from among our consumers about how and whether they view this modification.
As I stated, comprehending the why does not resolve whatever, however ideally it supplies a much better understanding of how we’re attempting to construct that collaboration. And this indicates developing the method we partner with all consumers, since history has actually shown that long lasting financial turn-around in UKI needs development in the SME market.
Utilizing over 16 million individuals, these companies comprise over 80% of the marketplace. A number of you here today, we can not overemphasize the value of these business to financial healing. However not just can SMEs out-compete with the ideal partner, they have the ability to alter the whole playing field.
The difficulty, nevertheless, is not to enable intricacy to sneak in as they grow. And this is where innovation comes forward, by permitting you to concentrate on your development by supplying a platform that provides stabilization. GROW with SAP makes this available to all companies, a proactive collaboration throughout our environment, providing you the capability to utilize fit to requirement in the cloud from the first day.
[⦠my door is] constantly open and we worth transparent discussion. I rely on that throughout this occasion our group will continue to show how we are laser concentrated on making your trust and the followership in the UKI. I quite anticipate continuing to deal with all of you and all of our consumers in 2024 and beyond and it’s been a satisfaction to be here. Thank you quite.
For more conversation on this, please have a look at this Diginomica short article by Derek du Preez