Skip to main content

SAP HANA 2 - Revolution or Evolution?

Yesterday SAP announced SAP HANA 2, an updated and improved version of its flagship product SAP HANA, and new SAP HANA microservices through SAP Hybris as a Service. SAP HANA 2 will be available for first customers on November 30 and an express edition shortly after its general availability. Note: if SAP talks about RTC this usually differs from General Availability, which is only after a successful ramp-up period of about 3 months to validate a product with early adopter customers. So the Express Edition will probably be released around end of Q1/2017.
In usual bold marketing words SAP HANA 2 is poised to be a “new foundation for digital transformation” and is according to Bernd Leukert, member of the executive board, Products and Innovation at SAP SE, the continuation of “breakthrough innovation on a highly stable core data platform for our customers”.
SAP HANA 2 shall deliver enhancements in the areas of database management, data management, analytical intelligence and application management as well as well as two more services for cloud customers: Text Analysis and Earth Observation Analysis. The latter in a beta status only. These latter two new HANA functionalities are likely to be the reason of tying the two announcements.
The update cycle of HANA 2 shall be 6 months.

Some Observations

It is interesting that SAP refers to the new HANA services as microservices. This suggests that these services are built on top of the HANA 2 core – or else HANA itself has been rearchitected to be built on a microservice architecture. I rather think the former, also as the delivery is via YaaS. So, SAP is somewhat muddling the waters here.
There is an enhancement to offload read-intensive workloads to secondary systems, with the reason to improve operations. While this seems sensible on the outset: Does this suggest that there are scaling problems with read operations?
A new edition of the SAP Enterprise Architecture Designer Web application with a focus on information (data) architecture is part of the delivery. Data architecture is only a small part of Enterprise Architecture, in fact part of the Systems Architecture domain, which in itself is one of four domains. I’d be interested to have a look at this tool.
The predictive analytics capabilities have been enhanced. Although the press release talks about “Analytical Intelligence” SAP does not jump on the bandwagon of Artificial Intelligence and Machine Learning here. This is interesting in itself.
The extension of runtimes to support additional languages and the enhanced file processor API is an important step although the statement of build packs and runtimes “can be used within SAP HANA extended application services, advanced model” is sufficiently fuzzy to raise some question marks.
There is no statement about upgrading/migrating from SAP HANA to SAP HANA 2.

My PoV

Assuming that the upgrade from SAP HANA to SAP HANA 2 is a simple upgrade we are definitely seeing an evolutionary approach here that combines additional functionality with ecosystem play and a (gentle) push into the cloud.
The push to cloud is evidenced by making some interesting services, namely the trio of Text Analysis services, available via YaaS only. While the Earth Observation Analysis service is interesting in itself its highest significance probably lies in its suggestion for an upcoming industry orientation on top of HANA. This would cater for SAP’s solution orientated strengths.
Making all these services available on top of the platform indicates the remuneration models SAP is going for: A base fee for platform and core applications plus usage based billing for sometimes important parts of functionality, which are delivered as metered services. It remains to be seen whether SAP finds a customer friendly balance here.
The ecosystem play shows itself in adding language runtimes and the express edition that both will attract additional developers who will build new services and applications on top of HANA. Combined with YaaS this is a powerful model.
A focus on analytics and integrating the platform into Enterprise Architecture is evident, although the EA angle likely needs quite some improvement. Why would I use the seemingly incomplete SAP Enterprise Architecture Designer when EA covers so much more than data architecture? However, the idea of using HANA as an architecture repository is quite intriguing.

Analytics is a core (horizontal) part of a platform as it is important for nearly every business scenario. Here we are coming to a concern, which revolves around what has not been announced. While very much hyped the topics of AI and machine learning are important. And both are platform technologies, as advanced analytics capabilities are. Salesforce just nonchalantly, almost in a sub-clause announced their Einstein as being part of their platform. SAP so far keeps fairly silent on both topics, apart from a partnership with IBM Watson.

Comments

Last Year's Top 5 Popular Posts

SAP CRM and SAP Jam - News from CRM evolution

During CRM Evolution 2017 I had the chance of talking with Volker Hildebrand and Anthony Leaper from SAP. Volker is SAP’s Global Vice President SAP Hybris and Anthony is Senior Vice President and Sales GM - Enterprise Social Software at SAP. Topics that we covered were things CRM and collaboration, how and where SAP’s solutions are moving and, of course, the impact that the recent reshuffling in the executive board has. Starting with the latter, there is common agreement, that if at all it is positive as likely to streamline reporting lines and hence decision processes. First things first – after all I am a CRM guy. Having the distinct impression that the SAP Hybris set of solutions is going a good way I was most interested in learning from Volker about how there is going to be a CRM for S4/HANA. SAP’s new generation ERP system is growing at a good clip, and according to the Q1/2017 earnings call, now has 5,800 customers with 400 new customers in the last quarter alone. Many...

How to play the long game Zoho style

The news On February 7 and 8 2024, Zoho held its annual ZohoDay conference, along with a pre-conference get together and an optional visit to SpacX’s not-too-far-away Starbase. Our guide, who went by Chief, and is probably best described as a SpaceX-paparazzi was full of facts and anecdotes, which made the visit very interesting although we couldn’t enter Starbase itself. The event was jam-packed with 125 analysts, 17 customer speakers, and of course Zoho staff for us analysts to talk to. This was a chance we took up eagerly. This time, the event took place in MacAllen, TX, instead of Austin, TX. The reason behind this is once more Zoho’s ruralization strategy, transnational localism.  Which gives also one of the main themes of the event. It was more about understanding Zoho than about individual products, although Zoho disclosed some roadmaps. More about understanding Zoho in a second.  The second main theme was customer success and testimonials. Instead of bombarding us with...

Zoho - A True Unicorn

End of January Zoho held its 2020 Zoho Days, an analyst summit, which I was happy to attend, along with more than 60 colleagues, as the only analyst from Germany, as it seems. Sadly, it took me quite a while to complete this – Zoho deserves a faster commentare. But hey, let’s look forward and get rolling. Zoho is a privately owned enterprise software company that has quietly evolved from a small software company in 1996 to an ambitious global player that serves the SMB- and enterprise CRM market with cloud applications. The company has a set of 45+ business apps with more than 50 million users, 10 data centres and counting, and is available in 180 countries. The company is profitable and maintained a CAGR of more than 30 percent over the past five years. But why quietly? Because Zoho managed its growth pretty unusually (almost) fully organically with only very minor acquisitions. Crunchbase lists one. Following this unique approach, which defies the tradit...

Salesforce stock tanks after earnings report - a snap analysis

The news On May 29, 2024, Salesforce reported its results for the first quarter of the fiscal year 2025. Highlights are a total quarterly revenue of $9.133bn US, resembling a year-over-year growth of 11 percent a current remaining performance obligation of $26.4bn US a remaining performance obligation of $53.9B US an operating margin of 18.7 percent. diluted earnings per share of $1.56 The company reported a revenue guidance of $9.2bn - $9.25bn US for the next quarter and a full year guidance of $37.7bn - $38.0bn US, resembling growth rates of 7 – 8 percent and 8 – 9 percent, respectively. With these numbers, Salesforce ended up at the lower end of last quarter’s guidance on the revenue growth side while exceeding the earnings per share projection and slightly lowered the guidance for the fiscal year 2025. The result: The company’s share price dropped from $272 to bottom out at $212. The bigger picture Salesforce is the big gorilla in the CRM and CX industry. The company has surpassed ...

You are only as good as your customer remembers

As you know, I am very interested in how organizations are using business applications, which problems they do address, and how they review their success. In a next instance of these customer interviews, I had the opportunity to talk with Melissa Gordon , Executive Vice President, Enterprise Solutions at Tidal Basin about their journey with Zoho. You can watch the full interview on YouTube. Tidal Basin is a government contractor that provides various services throughout the government space, including disaster response, technology and financial services, and contact centers. Tidal Basin started with Zoho CRM and was searching for a project management tool in 2019. This was prompted by mainly two drivers. First, employees were asking for tools to help them running their projects. Second, with a focus on organizational growth and bigger projects that involved more people, Tidal Basin wanted to reduce its risk exposure and increase the efficiency of project delivery. This way, the compa...