sap erp metamorphosis [shutterstock: 1402715897, Tithi Luadthong]
[shutterstock: 1402715897, Tithi Luadthong]
Blog Last and Least

SAP’s Metamorphosis

Many existing customers are questioning the fundamental SAP paradigm. What does this mean for SAP?

Does digital transformation change and transform the meaning and function of ERP software? This is not a question of whether to deploy it on premises, in the cloud, or in a hybrid system landscape. Many existing customers are questioning the fundamental SAP paradigm: Does there need to be a central database in line with the old, three-tier client-server model? Does every piece of software in an IT landscape have to come from SAP itself?

Given the technical and organizational possibilities, the answer to these two questions would have been a resounding yes just a few years ago. However, information technology has evolved quickly: Distributed databases with blockchain technology are possible. Almost any combination of applications with container technology is no problem. Open source in hyperscaler clouds is a given. Salesforce and Workday can easily communicate with SAP systems.

From a meta-level, ERP is undergoing a metamorphosis, driven by digital transformation. This evolution is a positive development for the SAP community because it opens up new opportunities. However, it might be dangerous for SAP itself, because it threatens its traditional business model depending on rigid licensing and multiple dependencies.

SAP could undergo a metamorphosis and rise like a phoenix from the ashes into a new ERP heaven. But will SAP manage to shed its legacy? This much can already be said: In five years at the latest, i.e., well before 2030, SAP will have to transform itself under pressure from competitors such as Salesforce and Workday.

Source:
E-3 Magazine October 2021 (German)

About the author

Peter M. Färbinger, Editor-in-Chief

Peter M. Färbinger is Editor-in-Chief and Publisher at E-3 Magazine, B4Bmedia.net AG, Munich, Germany. He can be reached at pmf@b4bmedia.net

Add Comment

Click here to post a comment

Sign up for e3zine´s biweekly newsbites

Please do not use administrative mail adresses like "noreply@..", "admin@.." or similar as these may get blocked for security reasons.

We use rapidmail for dispatching our newsletter. By signing up, you agree that the data you have entered will be transmitted to rapidmail. Please take note of their terms and conditions and privacy policy.termsandconditions.

Our Authors