IBM to retire Emptoris and work with SAP Ariba on next generation digital procurement

Duncan Jones

SAP Ariba & IBM today announced a partnership that had been a rumour for a few days now. Part of the deal includes IBM gradually retiring Emptoris and encouraging its customers to migrate to SAP Ariba.

http://www.ariba.com/about/press-releases/sap-ariba-and-ibm-transform-procurement

It’s an ambitious move by SAP Ariba. IBM Emptoris’s leadership had an exciting vision of next gen digital procurement but decided they couldn’t deliver it without a cost prohibitive replatforming of its various products. SAP Ariba has a good suite of products and a captive market, but now its leaders have shown that they also have a vision for digital procurement. The partnership makes sense for both companies.

·         IBM can now convert its digital procurement vision into revenue streams. By linking up with SAP Ariba it will be able to create a royalty stream for IBM Watson and implementation work for IBM GBS. Gracefully retiring Emptoris is a pragmatic decision and avoids wasting money trying to shore up a revenue stream that was doomed to decline anyway.

·         SAP Ariba will benefit from IBM’s vision, technology, and influence. It will get some new ideas about the opportunities for digital procurement. IBM GBS’s procurement transformation practice will become a source of leads for SAP Ariba. IBM’s own procurement department may be a proving ground for its innovation, (assuming that it eventually migrates from Emptoris to the Watson-enhanced SAP Ariba platform).

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Five Shades Darker? – What The Diageo “Indirect Access” Judgement Really Means For SAP Customers

Duncan Jones

At last, exactly two years later, the long-awaited sequel to my hit, if overly censored, blog post: Five Shades Of Grey (How software buyers and license managers should be compliant without being submissive). The trigger is the SAP vs Diageo verdict, which generated a lot of hysterical blogging and tweeting with dire predictions for SAP customers. IMO most commentators have overlooked the crucial parts of the judgment and therefore significantly overstated the case’s negative implications for SAP customers. I believe the judgement has actually made this grey area slightly more black-and-white. My analysis, subject to the usual IANAL disclaimer, is that the real implications are:

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Bosch And SAP Agree A Strategic Internet Of Things (IoT) Partnership To Facilitate Data Orchestration

Dan Bieler

I recently attended an event at which Bosch and SAP announced a major partnership to more closely align their respective cloud and software expertise around the industrial internet of things. This partnership underlines the fact that SAP and Bosch are prepared to significantly transform their respective business models to generate new value for their customers. The SAP and Bosch partnership focuses on two main items:

  • SAP will add SAP Hana database to Bosch IoT Cloud. Bosch customers will be able to access SAP Hana in the Bosch IoT Cloud with the goal of processing large quantities of data in near-real time. This makes it easier for Bosch’s customers to run analytics of IoT sensor data in the SAP Hana environment.
  • Bosch will make its IoT microservices available to SAP on SAP Hana Cloud Platform. This move will facilitate the safe connection of different devices and components, including vehicles, manufacturing machinery, and smart tools, with open platforms. Customers will benefit from a broad range of emerging services to support their business processes.
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Architect Your Predictive Analytics Capability To Unleash The Power Of Digital Business

Charlie Dai

Predictive analytics has become the key to helping businesses — especially those in the highly dynamic Chinese market — create differentiated, individualized customer experiences and make better decisions. Enterprise architecture professionals must take a customer-oriented approach to developing their predictive analytics strategy and architecture.

I’ve recently published two reports focusing on how to architect predictive analytics capability. These reports analyze the trends around predictive analytics adoption in China and discuss four key areas that EA pros must focus on to accelerate digital transformation. They also show EA pros how to unleash the power of digital business by analyzing the predictive analytics practices of visionary Chinese firms. Some of the key takeaways:

  • Predictive analytics must cover the full customer life cycle and leverage business insights. Organizations require predictable insights into customer behaviors and business operations. Youmust implement predictive analytics solutions and deliver value to customers throughout their life cycle to differentiate your customer experience and sustain business growth.You should also realize the importance of business stakeholders and define effective mechanisms for translating their business knowledge into predictive algorithm inputs to optimize predictive models faster and generate deeper customer insights.
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3 Ways To Squeeze Your SAP Maintenance Costs

Mark Bartrick

This is the first post in a series on strategies and tactics for negotiating your licensing agreements with software companies including SAP, Salesforce, and Workday

I recently had a call from an unhappy SAP customer moaning about the high costs of SAP’s annual maintenance and questioning whether they are getting good value for the money. I’m afraid that this is not a one-off conversation but something that is popping up regularly these days. The factors leading to the dissatisfaction include:

  • CIOs are keen to shift spend from boring legacy IT like paying maintenance on infrastructure to new, more exciting stuff — what Forrester calls business technology — that help win, serve and retain customers.
  • Hard economic times re-focus procurement’s lens back on to those large chunks of money that vendors want for maintenance.
  • SAP has been increasing maintenance costs to try to get everyone paying 22% of the net license costs each year.
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Cloud Foundry Is Evolving Toward Agility Via Container-Empowered Micro-services

Charlie Dai

The Cloud Foundry Foundation held its 2015 Summit recently in Santa Clara, attracting 1,500 application developers, operation experts, technical and business managers, service providers, and community contributors. After listening to the presentations and discussions, I believe that Cloud Foundry —one of the major platform-as-a-service (PaaS) offerings —is making a strategic shift from its traditional focus on application staging and execution to a new emphasis on micro-service composition. This is a key factor that will help companies gain the agility they need for both technology management and business transformation. Here’s what I learned:

  • Containers are critical for micro-service-based agility. Container based micro-services are getting momentum: IBM presented their latest Bluemix UI micro-services architecture; while SAP introduced their latest practice on Docker. Containers can encapsulate fine-grained business logic as micro-services for dynamic composition, which will greatly simplify development and deployment of applications, helping firms achieve continuous delivery to meet dynamic business requirements. This is why Forrester believes that the combination of containers and micro-services will prove irresistible for developers.
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SAP Is On The Right Track To Address The Pain Points Of Chinese Customers, But It Is Not On The Finish Line Yet

Charlie Dai

On February 9, SAP announced the launch of its next-generation enterprise process application, SAP Business Suite 4 SAP HANA (S/4HANA), in China. This is the third product launch event of SAP globally but it’s the first event during which the product is being launched with customer together.

From my discussions with Chinese customers during the event, I believe that SAP is on the right track to address their major concerns. However, enterprise architecture (EA) professionals in China should take a realistic approach when evaluating the feasibility of the architectural evolution of their enterprise process applications.

  • Chinese clients have suffered from complexity for a long time.As mentioned in my previous report, complexity is one of the key challenges that Chinese companies have faced in their drive to achieve business growth and product innovation, and product innovation must focus on simplicity to enhance customer experiences. This is particularly true when it comes to adopting mission-critical management software. It’s quite normal to hear complaints about the complex user interface, long implementation times, and the significant effort required to maintain and customize software; customization is much more popular and necessary in China than elsewhere due to the need for various types of localization.
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It’s Time To Consider Enterprise B2B Solutions In China

Charlie Dai

Previously, when CIOs and enterprise architecture professionals talked about “business-to-business” (B2B) commerce in China, most people thought of third-party B2B marketplaces like Alibaba.com or HC360.com. Very few companies use professional B2B solutions internally, instead relying on a combination of order management systems, customer relationship management, and third-party B2B marketplaces to trade with their business partners.

This is going to change. We have observed a few trends in the Chinese market that will become major drivers for the adoption of enterprise B2B solutions. These trends were further validated during the SAP summit last week in Shenzhen.

  • The legacy application architecture on the market won’t address the challenges of the age of the customer. Most of the companies currently doing business in China’s B2B market are small and medium-size companies with low IT systems maturity — many of them still exchange business information by emailing Excel files. These firms must rely on third-party marketplaces for business collaboration.
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HP Joins The Battle Of Mobile Application Delivery Management in China

Charlie Dai

HP was the first US company to create a joint venture subsidiary in China; three decades later, the vendor has become a major player in the country’s consumer and enterprise markets. Among enterprises, HP has strong brand awareness for its server products and services, traditional software solutions, and IT services, but rather less for holistic application life-cycle management (ALM), especially on the mobile side. I think it’s time for technology decision-makers and enterprise architects to seriously consider adopting mobile app delivery management solutions and to evaluate HP for that purpose. Here’s why:

  • HP’s portfolio now covers the entire mobile app life cycle.The products HP will bring to market as part of its latest strategy will eventually cover the entire mobile application life cycle from app design, development, and optimization to distribution and monitoring. For example, at the design stage, HP Anywhere — based on popular open source product Eclipse — allows developers to write once to multiple devices within its integrated development environment. And its service virtualization feature can help virtualize third-party cloud services and make them consumable across each layer of the system architecture, including web servers, application servers, and web services.
  • HP’s solution has rich optimization features suitable for Chinese enterprises. At the mobile app optimization stage, HP’s Mobile Center uses a comprehensive approach to functionality, interoperability, usability, performance, and security to consolidate and automate mobile testing. Mobile Center is integrated with LoadRunner, one of the most popular performance engineering tools in Chinese market.
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Extremes of x86 Servers Illustrate the Depth of the Ecosystem and the Diversity of Workloads

Richard Fichera

I’ve recently been thinking a lot about application-specific workloads and architectures (Optimize Scalalable Workload-Specific Infrastructure for Customer Experiences), and it got me to thinking about the extremes of the server spectrum – the very small and the very large as they apply to x86 servers. The range, and the variation in intended workloads is pretty spectacular as we diverge from the mean, which for the enterprise means a 2-socket Xeon server, usually in 1U or 2U form factors.

At the bottom, we find really tiny embedded servers, some with very non-traditional packaging. My favorite is probably the technology from Arnouse digital technology, a small boutique that produces computers primarily for military and industrial ruggedized environments.

Slightly bigger than a credit card, their BioDigital server is a rugged embedded server with up to 8 GB of RAM and 128 GB SSD and a very low power footprint. Based on an Atom-class CPU, thus is clearly not the choice for most workloads, but it is an exemplar of what happens when the workload is in a hostile environment and the computer maybe needs to be part of a man-carried or vehicle-mounted portable tactical or field system. While its creators are testing the waters for acceptance as a compute cluster with up to 4000 of them mounted in a standard rack, it’s likely that these will remain a niche product for applications requiring the intersection of small size, extreme ruggedness and complete x86 compatibility, which includes a wide range of applications from military to portable desktop modules.

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