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SAP gives CRM another shot with new cloud-based suite

Customer Relationship Management (CRM) is a mature market with a clear market leader in Salesforce. It has a bunch other enterprise players like Microsoft, Oracle and SAP vying for position. SAP decided to take another shot today when it released a new business products suite called SAP C/4HANA. (Ya, catchy I know.)

SAP C/4HANA pulls together several acquisitions from the last several years. It started in 2013 when it bought Hybris for around a billion dollars. That gave them a logistics tracking piece. Then last year it got Gigya for $350 million, giving them a way to track customer identity. This year it bought the final piece when it paid $2.4 billion for CallidusCloud for a configure, price quote (CPQ) piece.

SAP has taken these three pieces and packaged them together into a customer relationship management package. They see this term much more broadly than simply tracking a database of names and vital information on customers. They hope with these products to give their customers a way to provide consumer data protection, marketing, commerce, sales and customer service.

They see this approach as different, but it’s really more of what the other players are doing by packaging sales, service and marketing into a single platform. “The legacy CRM systems are all about sales; SAP C/4HANA is all about the consumer. We recognize that every part of a business needs to be focused on a single view of the consumer. When you connect all SAP applications together in an intelligent cloud suite, the demand chain directly fuels the behaviors of the supply chain,” CEO Bill McDermott said in a statement.

It’s interesting that McDermott goes after legacy CRM tools because his company has offered its share of them over the years, but its market share has been headed in the wrong direction. This new cloud-based package is designed to change that. If you can’t build it, you can buy it, and that’s what SAP has done here.

Brent Leary, owner at CRM Essentials, who has been watching this market for many years says that while SAP has a big back-office customer base in ERP, it’s going to be tough to pull customers back to SAP as a CRM provider. “I think their huge base of ERP customers provides them with an opportunity to begin making inroads, but it will be tough as mindshare for CRM/Customer Engagement has moved away from SAP,” he told TechCrunch.

He says that it will be important with this new product to find its niche in a defined market. “It will be imperative going forward for SAP find spots to “own” in the minds of corporate buyers in order to optimize their chances of success against their main competitors,” he said.

It’s obviously not going to be easy, but SAP has used its cash to buy some companies and give it another shot. Time will tell if it was money well spent.

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SAP snags CallidusCloud for $2.4 billion

 SAP, the German enterprise software giant, announced it acquired CallidusCloud last night for $2.4 billion or $36 per share. Callidus provides configure price quote (CPQ) and sales performance management tools delivered as a cloud service. The share price is a nice bump for shareholders, representing a 21 percent premium over the 30-day volume weighted average share price, according to SAP.… Read More

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SAP wants to bridge the gap between IoT and business data

 SAP announced a new tool today called the Leonardo IoT Bridge designed to help bridge the gap between data coming from sensors in the field and business systems operating inside a firm.
The manufacturing sector is in the middle of a massive shift where machines are being equipped with sensors that transmit torrents of data about their health, and the environment around them, over the… Read More

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SAP adds AI and integrated analytics in latest cloud release

SAP logo on wall in company headquarters SAP is about as traditional a legacy vendor as you are likely to find, delivering complex on-prem ERP solutions for the largest organizations on the planet. But like everyone else, SAP sees a future in which companies rely less on software installed in private data centers and more on public cloud products to handle the heavy lifting for them. And SAP S/4HANA, the company’s public… Read More

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HR 2.0 is the poster child for the next wave of SaaS innovation

shutterstock_157573751 The path for SaaS domination of a market segment has historically followed one of two routes: bringing previously offline workflows online, or moving on-premise software processes online. In short, SaaS would take over segments that previously were not SaaSified. Yet, the current wave of HR SaaS innovators the past few years is proving that there can be more to the story. Read More

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SAP beats analysts’ expectations, reports “record-setting” revenue and profit

Bill McDermott, chief executive officer of SAP AG, poses for a photograph during the software company's annual general meeting in Mannheim, Germany, on Wednesday, May 21, 2014. McDermott, who becomes the German company's sole chief executive officer today, is counting on the leadership change to speed decision-making at the software maker trying to accelerate growth. Photographer: Martin Leissl/Bloomberg via Getty Images German IT services and enterprise giant SAP reported encouraging numbers for Q2 2016, beating analysts’ expectations and spiking its share price by nearly five percent in pre-market trading Wednesday as its non-IFRS EPS increased 2 percent to €0.82 ($0.90). Analysts had predicted a quarterly EPS of $0.78. The leap is owed in part to the strength of the company’s… Read More

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Microsoft and SAP love grows stronger in the cloud

SAP extreme sailing in Singapore. Microsoft and SAP have been pals for years and years, and today at the SAP Sapphire Now customer conference in Orlando, the two company CEOs, Satya Nadella and Bill McDermott announced they were taking the relationship to another level with deeper cloud integrations between the two companies. The deal will enable SAP customers to run HANA, the company’s in-memory database product … Read More

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SAP announces new partnership with Apple to expand iOS in the enterprise

A man walks up the stairs at the Apple Store in Grand Central Station February 25, 2016. 
Apple has been in a legal fight with the government in the San Bernardino case, where the FBI wants the company to help hacking the iPhone of Syed Farook, a US citizen, who gunned down 14 people with his Pakistani wife Tashfeen Malik in the California city in December. / AFP / Timothy A. CLARY        (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images) SAP announced a broad partnership with Apple today to bring iOS to SAP’s enterprise customer base. The announcement comes almost two years after Apple made a similar deal with IBM. Steve Lucas, president for SAP’s Digital Enterprise Platform says while it’s natural to see similarities between the two deals — two large enterprise companies making a deal with Apple… Read More

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