back to article SAP's on-site apps fumble for the gearstick as cloud stamps pedal

The decline in SAP’s software sales has accelerated while the company’s smaller cloud operation has continued to expand. For the tech giant's first quarter of 2014, revenue from sales of on-premises business applications fell five per cent, year on year, to €623m ($860m), under IFRS rules, according to its latest financial …

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  1. Ugotta B. Kiddingme

    what isn't clear from the article

    is how much of the biz is Ariba and how much is legacy SAP - important since both have on-premise and cloudy options. The integration between the Ariba and legacy SAP is rapidly improving and, as a customer of both product lines, that's good for my company - especially as HANA gets ported to the Ariba product lines. Interesting times ahead.

    1. Anonymous Coward
      Anonymous Coward

      Re: what isn't clear from the article

      Good point, that 60% probably contains the Ariba acquisition as "cloud" revenue.

  2. Stretch

    Anyone notice a number of their hosted customers (including Maplins and Coop) go down this morning for a good 30mins to an hour? Frankfurt DC DNS issues.

  3. Getriebe

    More detail than they will release

    would be interesting.

    Those on prem sales - what is the decline in new lics., vs upgrades vs extra seats.

    What's the margin on the cloud based seats?

    Plus a lot more before we could really asses which way their business is going.

    Whilst I hate R3 with a vengeance, I just don't see it going away for decades and will provide Herr Hopp many D.Marks for years to come

    1. Anonymous Coward
      Anonymous Coward

      Re: More detail than they will release

      Depends on what you mean by cloud based seats. If you mean a pure rental model, like Salesforce, Zuora, Box, Google, etc use, it is less lucrative than buy and support. Many of these established/legacy providers are not following the rental license model for their cloud offerings though, it is more of a hosted model in which you still own the licenses.

      1. Anonymous Coward
        Anonymous Coward

        Re: More detail than they will release

        or they are pure rental models, but they factor the licensing cost into a three year revenue model so they are not losing revenues with SaaS instead of on-prem. The last thing they want to do is offer some new subscription service in which every SAP user can move to that model and immediately lower their costs... or a model which is clearly more attractive than licensing so no new customer chooses to buy the licensing.... It will probably be a matter of how much pressure the new SaaS players put on them. If they start losing deals and installs all over the place, they will be forced to accept lower margins. Salesforce is raising a ruckus in the CRM space. Oracle Siebel and SAP CRM are being replaced left and right by Salesforce. You have Workday and some other new players, Zuora (Salesforce spin-off), in the ERP or becoming ERP space, but they haven't had the sort of impact Salesforce has had in CRM.

  4. Anonymous Coward
    Anonymous Coward

    HANA numbers and cloud value

    1200 of the 3200 HANA customers are ISVs paying little or no license fees. HANA has less than 1 per cent share of the real SAP customer base after 2 years, still early days but given the marketing is this really the huge success SAP claims?

    Regarding cloud, customers who sign up to this are writing a blank cheque. At least with on premise you have the choice, as some customers have actually done, of continuing to run without support to avoid paying the ever higher SAP support fees. On cloud, you have no choice but to keep paying or undertake a costly migration.

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